What ETFs are used in this backtest?

VTI 50%, VXUS 30%, BND 20%, rebalanced annually.

Why only three funds?

Three broad index funds already hold thousands of securities across the world, so additional funds add complexity without much extra diversification.

How has the Three-Fund portfolio performed?

Run the backtest above to see growth, return, and drawdown over your chosen period. Note VXUS history begins in 2011, so earlier ranges are clamped.

Free portfolio backtest · 20+ years of data

Three-Fund portfolio backtest

Balancedby Bogleheads

See how $10,000 in the Three-Fund portfolio would have grown — real, dividend-adjusted history, rebalanced yearly. No signup.

The Bogleheads' simple three-fund portfolio: US stocks, international stocks, and bonds.

Allocation (locked)

VTI · Vanguard Total Stock Market ETF50%
VXUS · Vanguard Total International Stock ETF30%
BND · Vanguard Total Bond Market ETF20%

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Defaults to the last 10 years. Clean, fee-free backtest with annual rebalancing.

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Pick a date range above (or use the last 10 years) and hit Run backtest.

About the Three-Fund strategy

The Three-Fund portfolio is the Bogleheads' answer to portfolio simplicity: total US stock market, total international stock market, and total bond market — three broad, low-cost funds that together hold thousands of securities.

This backtest uses VTI (50%), VXUS (30%), and BND (20%), rebalanced annually. The appeal is coverage with minimal complexity: global equity diversification plus a bond anchor, with nothing to tinker with.

It suits investors who want a complete, hands-off portfolio and prefer broad diversification over trying to pick winning regions or sectors.

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Frequently asked questions

A simple, broadly diversified portfolio of total US stocks, total international stocks, and total bonds, popularized by the Bogleheads community.

For educational and informational purposes only. Backtests use split- and dividend-adjusted historical prices with annual rebalancing and no fees, taxes, or slippage; real-world results differ. Past performance is not indicative of future results. Awalyt does not provide investment advice.