ATLASWhat is the 3-fund portfolio? An example with ETFs
3-fund portfolio: 40% US stocks, 20% international stocks, 40% bonds. Using VTI, VXUS, and BND, this mix returned +14.6% per year over the last 3 years and +6.1% per year over 5 years; its largest drop in the last 5 years was -22.0%.
Updated November 2, 2026 · Source: ATLAS daily price data and fund distributions
The three-fund portfolio holds one US stock fund, one international stock fund and one bond fund. It is described on the Bogleheads wiki, the community built around the ideas of John C. Bogle, and the percentages are chosen by each investor. This example uses 40% / 20% / 40% as one illustration.
Allocation of this example
| ETF | What it holds | Weight | Expense ratio | 12-month yield |
|---|---|---|---|---|
| VTIVanguard Total Stock Market ETF | US total stock market | 40% | 0.03% | 1.07% |
| VXUSVanguard Total International Stock ETF | International stocks outside the US | 20% | 0.05% | 2.40% |
| BNDVanguard Total Bond Market ETF | US total bond market | 40% | 0.03% | 4.14% |
| Weighted average | 100% | 0.03% | 2.56% | |
How this mix behaved in the past
- Last 1 year+7.4%Oct 2025 – Nov 2026
- Last 3 years, per year+14.6%+50.3% · Nov 2023 – Nov 2026
- Last 5 years, per year+6.1%+34.3% · Nov 2021 – Nov 2026
- Volatility, last 3 years9.4%Nov 2023 – Nov 2026
- Largest drop, last 5 years-22.0%high Nov 2021, low Oct 2022
- Largest drop since Jan 2011-22.3%high Feb 2020, low Mar 2020
Total return in USD, distributions reinvested. Volatility is the annualised standard deviation of daily returns. These are past results, not forecasts.
What 10,000 would have become over the last 5 years
Return by calendar year
| Year | Return |
|---|---|
| 2026 (to date) | +6.5% |
| 2025 | +16.3% |
| 2024 | +10.9% |
| 2023 | +15.8% |
| 2022 | -15.8% |
| 2021 | +10.9% |
| 2020 | +14.9% |
| 2019 | +20.0% |
The split between the three funds is a personal choice, and this example is only one of many. International stocks and US stocks do not always move together, but they often do in market stress.
Method and data
Period: January 28, 2011 to November 2, 2026 (the longest period in which every ETF in the mix has a price). Returns are total returns in US dollars: daily closing prices stored by ATLAS plus fund distributions reinvested on the ex-dividend date. The mix is rebalanced every day to the weights shown. Fund expense ratios are already included in prices; taxes, trading costs, advisory fees and currency effects for non-US-dollar investors are not. Distributions come from the data provider and were last refreshed November 3, 2026.
Other example portfolios
- 60/40 portfolio60% stocks, 40% bonds · 5 years, per year: +6.6%
- All-weather-style portfolio30% stocks, 55% Treasuries, 7.5% gold, 7.5% commodities · 5 years, per year: +2.4%
- Dividend income ETF portfolio60% dividend stock ETFs, 10% real estate, 30% bonds · 5 years, per year: +6.8%
- 50/50 portfolio50% stocks, 35% bonds, 15% inflation-protected bonds · 5 years, per year: +5.1%
- 30/70 conservative portfolio30% stocks, 50% bonds, 20% inflation-protected bonds · 5 years, per year: +3.1%
Related tools
Frequently asked questions
What is the three-fund portfolio?
A mix of a total US stock market fund, a total international stock fund and a total bond market fund. It is known from the Bogleheads community.
What are the three funds in this example?
VTI (US stocks), VXUS (international stocks outside the US) and BND (US bonds), at 40%, 20% and 40%.
How often should a three-fund portfolio be rebalanced?
There is no single rule. Some investors rebalance once a year or when a fund drifts a set number of percentage points from its target. This page assumes daily rebalancing to keep the calculation simple.
Is there a version with UCITS ETFs for European investors?
Many European investors use UCITS-compliant funds that cover the same three roles. ATLAS only has price history for US-listed funds, so it does not show a UCITS version here.
Educational example only. ATLAS does not give personal investment advice. Disclaimer