Bogleheads Three-Fund
StaticPromoderateBased on research by Bogleheads / Taylor Larimore · Larimore, T. The Bogleheads' Guide to the Three-Fund Portfolio (2018)
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Launched Nov 21, 1999About this Strategy
The most popular lazy portfolio: US stocks, international stocks, and US bonds. Simple, diversified, low-cost.
The complete strategy logic, asset universe, and rebalancing rules are available to Pro subscribers. This includes the full methodology description, author notes, and implementation details.
Pro subscribers also get access to current signals, full backtest history, and the ability to blend this strategy into custom portfolios.
Strategy Rules
Pro subscribers only
- 1Allocate 40% to VTI (Vanguard Total US Stock Market)
- 2Allocate 20% to VXUS (Vanguard Total International Stock)
- 3Allocate 40% to BND (Vanguard Total Bond Market)
- 4Rebalance annually or when drift exceeds threshold
Key Differentiators
Research Source
Based on research by Bogleheads / Taylor Larimore
Larimore, T. The Bogleheads' Guide to the Three-Fund Portfolio (2018)
Strategy Info
- Type
- Fixed / Strategic
- Frequency
- annual
- Next Rebalance
- Jan 409:30 ET (227d)
- Variants
- 2
- Risk Category
- moderate
- Tags
- static
- Type
- Fixed/Strategic Asset Allocation
- Trading Frequency
- Annual or on-drift rebalancing
- Number Of Holdings
- 3 ETFs
- Equity Allocation
- 60% (40% US + 20% International)
- Bond Allocation
- 40%
- Risk Level
- Moderate
Asset Classes
Bogleheads Three-Fund at a glance
Bogleheads Three-Fund is a fixed-allocation portfolio by Bogleheads / Taylor Larimore across US Equity, International Equity, US Bonds, rebalanced annual. Backtested 1987-12-31 to 2026-05-20 (38.4 years): 8.3% CAGR, 0.83 Sharpe, -36.7% max drawdown, 10.2% volatility.
- Type
- Fixed Allocation
- Author
- Bogleheads / Taylor Larimore
- Rebalancing
- Annual
- Risk
- Moderate
- Period
- 1987-12-31 to 2026-05-20
- CAGR
- 8.3%
- Sharpe
- 0.83
- Max Drawdown
- -36.7%
- Volatility
- 10.2%
Bogleheads Three-Fund — Fixed Allocation Portfolio
The Bogleheads Three-Fund Portfolio, championed by Taylor Larimore and the Bogleheads forum, captures the entire global stock market plus the US bond market in just three low-cost index funds: 40% US stocks (VTI), 20% international stocks (VXUS), and 40% bonds (BND).
Backtest Performance (1987-12-31 to 2026-05-20)
| Metric | Bogleheads Three-Fund |
|---|---|
| Compound Annual Growth Rate (CAGR) | 8.3% |
| Maximum Drawdown | -36.7% |
| Sharpe Ratio | 0.83 |
| Sortino Ratio | 1.05 |
| Annualized Volatility | 10.2% |
| Calmar Ratio | 0.23 |
| Total Return | 2045.4% |
| Backtest Period | 38.4 years |
Strategy Details
- Type
- Fixed / Strategic
- Rebalancing
- annual
- Risk Level
- moderate
- Variants
- 2
- Author
- Bogleheads / Taylor Larimore
- Source
- Larimore, T. The Bogleheads' Guide to the Three-Fund Portfolio (2018)
Asset Classes
- US Equity
- International Equity
- US Bonds
Categories
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