These interactive charting tools are my own homemade creations for backtesting portfolios. I originally started making them to study my own investments, but I quickly realized that they could be scaled to study any combination of assets. I also believe that other investors may find the information useful, so I’m happy to share my work. Here’s how to use the Portfolio Charts tools to model your own personal asset allocation.
Each chart contains a wide variety of information including both user inputs and chart outputs. As a general rule, any field you see in black is a user input. There are asset allocation inputs that control the portfolio for every chart, and individual inputs that control settings unique to a specific chart. When you change an input, the charts will automatically update on-the-fly. There’s no “calculate” button. So if you see something that looks like an input, try changing it and see what happens. And if you ever need to reset the inputs, just refresh your browser to start over.
Asset Allocation Settings
The primary interface for every chart is the asset allocation grid. You can think of it like a periodic table of the elements where you can select every asset included in your portfolio.
There are three important inputs to keep an eye on:
This is the country where you live, and the setting will affect the inflation and exchange rates used in the calculations. You can change the country by clicking on the 3-letter country abbreviation in the top-right and selecting an option from the dropdown.
The data does not track individual funds using specific ticker names, but the underlying index that the funds are designed to follow. Each square on the grid represents a different investment index, and the index can be described by two pieces of information — the country or region, and the specific asset type. For example, VTI is a popular ETF that follows the total stock market in the United States. So if your portfolio includes 60% VTI, enter a “60” in the box at the intersection of USA and TSM.
As you enter asset percentages, the donut chart will automatically update to show the construction of the portfolio. The tools require whole numbers (with no decimals) for each asset, and you may see an error message if you try to get too precise with the numbers. Continue adding assets until the portfolio adds up to 100%.
More information on what all of the asset types mean and how they correspond to real-world funds can be found in the Index Funds section.
The row labeled WLD tracks a broad collection of developed countries for the widest possible coverage outside of your home country. But since “international” means different things to different people depending on where you live, there are two WLD settings. The default setting is “World ex-US”, which covers all developed countries except for the United States. The alternative is “All Developed” which includes the US.
To select the WLD setting for your portfolio, choose the desired option from the dropdown in the gray bar just below the WLD row. Note that the setting will affect every WLD asset in the row, including both stocks and bonds.
Every chart starts from the same default settings, and you’ll need to reenter your own portfolio every time you visit a new page. To make that process easier, Portfolio Charts uses shortcodes as a secondary way to enter an asset allocation.
Once you’ve correctly entered all of the data for your portfolio in any chart, look for the Shortcode section on the bottom-right of the asset allocation interface.
You can copy the code in the “copy” field and save it for later. Pasting it into the black “paste” field in any chart will automatically fill out every asset allocation input with no extra data entry required. To clear the setting and revert to the choices before the shortcode was entered, simply type a zero in the paste field. For more information on how this works, here’s a quick walkthrough.
Beyond the asset allocation percentages, some charts include unique local settings. For example, note the extra inputs for the Retirement Spending calculator:
Chart-level settings will only affect that chart alone and none of the others on the same page. They also operate independently of any shortcode used to pre-fill the asset allocation.
Interpreting the Charts
A common theme that you will find in each and every chart is that they intentionally model every investing timeframe within the available database simultaneously. So not only to they show the investing timeframe starting in 1970, but also the one starting in 1971, 1972, and so on. I call this approach “start-date-independent” backtesting, and I believe it’s a very important method to bypass cherry-picking of data and understand investing uncertainty.
All of that information makes each image very data-dense compared to other tools you may be accustomed to. For full information on how to use and interpret each chart, be sure to visit the individual pages in the Charts section. Also note that some charts include detailed FAQs that cover many of the most common questions. And if you have any additional questions not already covered, feel free to contact me any time.