Backtesting

Vanguard Three-Fund Portfolio Backtest

This post outlines a backtest for a classic Vanguard three-fund portfolio strategy.

Hypothesis

The portfolio holds:

  • 35% Vanguard Total Stock Market Index Fund (VTI)
  • 20% Vanguard Total International Index Fund (VXUS)
  • 45% Vanguard Total Bond Market Fund (BND)

The strategy is buy-and-hold with no fees.

Portfolio Result

MetricPortfolio
Initial valueUSD 100,000
Annualized Return+6.09%
Annualized Volatility9.92%

(Backtesting data and detailed performance metrics to be computed.)

Methodology

This backtest uses historical data for the selected Vanguard ETFs. It serves as a model to analyze the risk and return characteristics of a balanced, low-cost index portfolio over the historical period.

This is a modelled hypothesis, not a forecast. It does not include fees, taxes, or transaction costs.

Vanguard Portfolio Backtesting VTI VXUS BND
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