PORTFOLIO MATRIX

The Portfolio Matrix ranks every recommended asset allocation across a variety of valuable metrics and allows you to sort the list by any data point you like. Use this to study the relative strengths and weaknesses of each option, balance the impact of critical tradeoffs, and find the right portfolio for your own personal needs.

_

_

_

How To Interpret The Chart

Rather than calculating the returns of an individual portfolio, the Portfolio Matrix collects the stats for every portfolio on the site in one image. It consists of two parts — Rankings and Performance. Selecting a portfolio metric will always sort the results from best to worst.

Rankings

The rankings matrix on the left displays the relative performance of every portfolio across ten different metrics. The horizontal rows correlate to an individual portfolio, and the vertical columns track a performance metric across portfolios. The rankings are also color-coded with blue representing the best portfolios and red representing the worst portfolios. A red color does not mean that a portfolio is an objectively poor choice, but simply that it is less desirable for that metric relative to other good options.

Performance

The bar chart on the right displays the actual values for the specified performance metric. Use this to understand the true values behind the rankings. Blue bars mean that high numbers are good, while red bars mean that high numbers are bad.

_

Calculations

  • Baseline LT Return : Conservative practical long-term return excluding the worst outliers (15th percentile 15-year real CAGR)
  • Baseline ST Return : Conservative practical short-term return excluding the worst outliers (15th percentile 3-year real CAGR)
  • Safe WR : The withdrawal rate that never ran out of money in any 30-year retirement
  • Perpetual WR : The withdrawal rate that sustained the initial inflation-adjusted principal over every 30-year retirement
  • Ulcer Index : A composite measure of drawdown depth, length, and frequency
  • Longest Drawdown : The years it took to permanently recover the initial inflation-adjusted account value in the worst-case drawdown
  • Start Date Sensitivity : A measure of the degree of potential start date bias. High scores indicate that returns are inconsistent.

Additional Reading

Original Overview : Study the Portfolio Rankings to Find an Investing Winner