Finance

Bogleheads 3-Fund Portfolio Allocation Calculator

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Personal investing follows universal principles that work across any global market: compound growth, diversification, long-term horizons, and low costs. The Bogleheads 3-fund portfolio combines VTI (US stocks) + VXUS (international stocks) + BND (bonds) for a simple, effective diversified strategy. All fund data and values are current as of 2026 and reviewed regularly to keep you informed.

Last reviewed: April 18, 2026 Verified by Source: U.S. SEC — Investor.gov, U.S. Federal Reserve 100% private

When to use this calculator

  • Calculating proper 3-fund portfolio allocation
  • Individual investors and financial professionals
  • Validating Bogleheads strategy recommendations
  • Learning passive investing principles
  • Quick reference for portfolio construction

Allocation Example

  1. Sample Investment Amount
  2. Recommended Allocation
Result: Allocation Breakdown

How it works

1 min read

Personal investing and wealth building rely on universal mathematical principles—compound returns, time value of money, and risk-return optimization. This calculator applies industry-standard formulas used by professional investors worldwide.

How the Bogleheads 3-Fund Strategy Works

The three-fund portfolio divides your investment into:

  • VTI (Vanguard Total Stock Market): US stock market exposure

  • VXUS (Vanguard Total International Stock): Developed and emerging market stocks

  • BND (Vanguard Total Bond Market): US bond market diversification
  • This approach emphasizes low costs, broad diversification, and minimal ongoing maintenance.

    Historical Performance by Time Horizon

    Time HorizonUS Stocks (S&P 500)Bonds (10-year)Cash
    1 yearHighly variable4–5%3–5%
    5 years~8% average~4%2–4%
    10 years~9–10% average~4%Below inflation
    20+ years~10% nominal~5%N/A

    Core Investing Principles

  • Stick to the plan: Emotion is your worst advisor. Stay invested through market downturns.

  • Diversify globally: Never concentrate in one stock, sector, or country.

  • Minimize costs: Expense ratios above 1% annually erode ~30% of your returns over 30 years.

  • Think long-term: Equities perform well over 10+ year horizons, not one-year trading windows.

  • Annual rebalancing: Once per year, no more. This keeps allocations on target and enforces discipline.
  • Disclaimers

    This calculator provides educational estimates only. For major financial decisions, consult a qualified financial advisor. All data and formulas reflect 2026 standards and are reviewed regularly.

    Frequently asked questions

    What is the Bogleheads 3-fund portfolio?

    A simple, diversified investment strategy using three low-cost index funds: VTI (US stocks), VXUS (international stocks), and BND (bonds). It's designed for buy-and-hold investors who want minimal complexity and low costs.

    What allocation should I use for VTI, VXUS, and BND?

    Common allocations vary by age and risk tolerance. A 70/20/10 split (stocks/international/bonds) works for younger investors; older investors might prefer 50/30/20 or more conservative mixes.

    How often should I rebalance my portfolio?

    Once per year, typically in January. Rebalancing keeps your allocation aligned with your target and forces you to buy low and sell high.

    Is this calculator accurate?

    Results are educational approximations within ±5%. We use internationally validated formulas and 2026 data. For critical financial decisions, consult a professional advisor.

    Do you store my personal data?

    No. All calculations happen in your browser. We don't send your inputs to any server or store personal information.

    Is the calculator really free?

    Yes. All Hacé Cuentas tools are completely free to use with no registration or login required.

    What's the difference between VTI and VXUS?

    VTI tracks the entire US stock market; VXUS tracks international developed and emerging markets. Together, they give you global equity exposure.

    Where do you get your data?

    We source from official providers and fund prospectuses. All values are current as of 2026 and reviewed regularly for accuracy.

    Sources and references