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Portfolio Analysis for Scott Burns Couch Potato Portfolio

Jan 31, 1871Jul 5, 2024

The Couch Potato portfolio is a very simple, lazy portfolio created by [Scott Burns](https://scottburns.com), a personal finance columnist.

Its allocation consists of 2 asset classes which are equal weighted:

- **50% in S&P 500:** Since 70 percent of all managed funds tended to trail the S&P 500 index, this broad index was chosen.

- **50% in US Intermediate Term Treasury:** Originally the Lehman Intermediate Bond Index was chosen by Scott.

The backtesting period is limited by the inception date of S&P 500 (US Large Cap) (SP500.X): Jan 31, 1871.

Overview

A quick overview of the assets within the portfolio, its performance and main metrics.

Assets

The portfolio consists of 2 asset classes, which are all equally weighted.

Name / TickerTypeCurrencyInceptionWeight
S&P 500 (US Large Cap)
SP500.X
Asset ClassUSDJan 31, 187150%
Intermediate-Term Treasury
MTTREASURY.X
Asset ClassUSDDec 30, 187050%
Performance (Jan 31, 1871 - Jul 5, 2024)
Annual Return
7.19%
Sharpe Ratio
1.42
Min Holding Period
3.65years
Worst Downturn
-50.83%in 1932

Metrics

Portfolio ScoreScott Burns Couch Potato Portfolio
Portfolio Score
ReturnsScott Burns Couch Potato Portfolio
Month-to-Date1.34%
Year-to-Date8.84%
3M4.51%
6M9.68%
Annualized Return (3Y)4.21%
Annualized Return (5Y)7.73%
Annualized Return (10Y)7.24%
Annualized Return (20Y)7.12%
Annualized Return (All, 153.4Y)7.19%
RiskScott Burns Couch Potato Portfolio
Annual Volatility4.89%
Max Drawdown-50.83%
Sharpe Ratio1.42
Sortino Ratio2.03
Adjusted Sortino Ratio1.44
Projected Capital Growth

With a projected annual return (CAGR) of 7.19% and an initial investment of $10,000, Scott Burns Couch Potato Portfolio would have the following projected capital growth over the next 50 years.

YearStarting CapitalEnding CapitalTotal GainAvg Monthly GainCumulative Return
$10,000$10,719$719$607.2%
5$14,150$15,168$1,017$8551.7%
10$20,024$21,463$1,440$120115%
15$28,334$30,372$2,037$170204%
20$40,095$42,977$2,883$240330%
50$321,894$345,039$23,144$1,9293,350%

Returns

A detailed look at the returns of the portfolio(s).

Annualized Returns
PortfolioAll (153.4Y)20Y10Y5Y3Y1Y
Scott Burns Couch Potato Portfolio7.19%7.12%7.24%7.73%4.21%15.34%
Yearly Returns
YearScott Burns Couch Potato Portfolio
18717.12%
18727.68%
1873-1.42%
187412.38%
18754.74%
1876-2.32%
18770.96%
18789.22%
187926.27%
188014.62%

Summary

PortfolioPositive YearsNegative YearsPositive RatioBest Return YearsWorst Return Years
Scott Burns Couch Potato Portfolio1233179.87%154154

Risk

Let's analyze how much risk the portfolio(s) have.

Drawdowns
StartValleyEndDaysMax drawdownChart
1929-10-011932-06-301936-01-16
2298
-50.83%
2007-12-112009-03-092010-03-16
826
-24.8%
1937-04-011938-04-291943-02-01
2132
-20.81%
1987-08-261987-10-191989-04-10
593
-19.24%
1973-02-011974-09-301975-05-30
848
-18.25%