Three-Fund Portfolio
Apr 10, 2007 – Nov 12, 2026, Rebalanced annually, BND starts Apr 10, 2007
| Final balance | CAGR | Max drawdown | Sharpe ratio | |
|---|---|---|---|---|
| Three-Fund | $37,549 | +6.99% | −35.31% | 0.64 |
| S&P 500 | $74,751 | +10.81% | −55.19% | 0.62 |
| Final balance | CAGR | Max drawdown | Sharpe ratio | |
|---|---|---|---|---|
| Three-Fund | $37,549 | +6.99% | −35.31% | 0.64 |
| S&P 500 | $74,751 | +10.81% | −55.19% | 0.62 |
| Three-Fund | S&P 500 | |
|---|---|---|
| Final balance | $37,549 | $74,751 |
| CAGR | +6.99% | +10.81% |
| Max drawdown | −35.31% | −55.19% |
| Sharpe ratio | 0.64 | 0.62 |
Loading the growth chart…
Growth of $10,000
Key metrics
| Return | Three-Fund | S&P 500 |
|---|---|---|
| Final balance | $37,549 | $74,751 |
| Total return | +275.49% | +647.51% |
| CAGR | +6.99% | +10.81% |
| Calendar years | Three-Fund | S&P 500 |
|---|---|---|
| Best year | +20.36% | +32.31% |
| Worst year | −20.61% | −36.80% |
| Positive years | 14 of 18 | 15 of 18 |
| Risk | Three-Fund | S&P 500 |
|---|---|---|
| Max drawdown | −35.31% | −55.19% |
| Longest drawdown | 2.9 years | 4.9 years |
| Volatility (daily, annualized) | 11.58% | 19.62% |
| Risk-adjusted | Three-Fund | S&P 500 |
|---|---|---|
| Sharpe ratio | 0.64 | 0.62 |
| Sortino ratio | 0.90 | 0.88 |
| Calmar ratio | 0.20 | 0.20 |
Annual returns
| Year | Three-Fund | S&P 500 |
|---|---|---|
| 2017 | +15.27% | +21.71% |
| 2018 | −4.80% | −4.57% |
| 2019 | +20.34% | +31.22% |
| 2020 | +13.94% | +18.33% |
| 2021 | +11.53% | +28.73% |
| 2022 | −16.25% | −18.18% |
| 2023 | +16.05% | +26.18% |
| 2024 | +11.55% | +24.89% |
| 2025 | +15.84% | +17.72% |
| 2026 to Nov 12 | +6.53% | +11.89% |
Worst drawdowns
| Decline | Peak | Bottom | Recovered | Length |
|---|---|---|---|---|
| −35.3% | Oct 2007 | Mar 2009 | Oct 2010 | 2.9 years |
| −22.1% | Nov 2021 | Oct 2022 | Mar 2024 | 2.3 years |
| −21.3% | Feb 2020 | Mar 2020 | Jul 2020 | 5 months |
| −11.8% | Apr 2011 | Oct 2011 | Feb 2012 | 9 months |
| −11.4% | Jan 2018 | Dec 2018 | Mar 2019 | 1.1 years |
About the Three-Fund Portfolio
The Three-Fund Portfolio comes from the Bogleheads, an investing community named after Vanguard founder John Bogle. It uses three index funds, one each for US stocks, international stocks and US bonds.
There's no fixed split. This page uses 42% US stocks, 18% international stocks and 40% bonds. That's 60% in stocks, with 30% of them abroad. VEU replaces the usual VXUS, which only started in 2011, so the backtest can include 2008.
Its worst fall took 2.9 years to recover, and it beat the S&P 500 in 2 of 18 full years.
Daily closes with dividends reinvested and fund fees included, before taxes and trading costs.