momopi
Well-known member
Cavet: Historical returns do not guarantee future outcomes
testfol.io
testfol.io
Example:
testfol.io
If you've never used a portfolio back testing tool before, try this:
We'll use the 2 popular 60/40 mutual funds from Vanguard:
Insert 100% VBIAX for portfolio #1
Insert 100% VWELX for portfolio #2
Set the start date to 2000-11-13 (when VBIAX started)
Set to end date to 2024-7-11
Click on back test button
With default setting of $10,000 deposit, you'll find that VBIAX yielded $48,320.50 vs VWELX yielded $64,685.07.
In terms of risk, there isn't a large difference in max drawdown of -35.90% vs -36.12%.
When you take a closer look at the 2 Vanguard funds, you'll find that Wellington has slightly more equities (stocks) and slightly higher performance:
investor.vanguard.com
investor.vanguard.com
That small difference in performance adds up to a large chunk of money after 24 years. You could possibly make even more with VWENIX version of the Wellington fund with lower fees:
investor.vanguard.com
You can also use tools like Portfolio Visualizer: https://www.portfoliovisualizer.com/
testfol.io
testfol.io
Example:
testfol.io
If you've never used a portfolio back testing tool before, try this:
We'll use the 2 popular 60/40 mutual funds from Vanguard:
Insert 100% VBIAX for portfolio #1
Insert 100% VWELX for portfolio #2
Set the start date to 2000-11-13 (when VBIAX started)
Set to end date to 2024-7-11
Click on back test button
With default setting of $10,000 deposit, you'll find that VBIAX yielded $48,320.50 vs VWELX yielded $64,685.07.
In terms of risk, there isn't a large difference in max drawdown of -35.90% vs -36.12%.
When you take a closer look at the 2 Vanguard funds, you'll find that Wellington has slightly more equities (stocks) and slightly higher performance:
Vanguard Mutual Fund Profile | Vanguard
Vanguard Mutual Fund Profile | Vanguard
That small difference in performance adds up to a large chunk of money after 24 years. You could possibly make even more with VWENIX version of the Wellington fund with lower fees:
Vanguard Mutual Fund Profile | Vanguard
You can also use tools like Portfolio Visualizer: https://www.portfoliovisualizer.com/
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