αc Compound Portfolio IV

A buy-and-hold portfolio consisting of a number of stable companies with high long-term growth.
31 December 1997  –  29 July 2021
Compare with
S&P 500 (US Large Cap) (SP500.X)

Performance

Annualized Return
33.12%
αc Compound Portfolio IV
8.54%
S&P 500 (US Large Cap)
Sharpe Ratio
1.33
αc Compound Portfolio IV
0.51
S&P 500 (US Large Cap)
Maximum Drawdown
-44.06%
αc Compound Portfolio IV
-55.2%
S&P 500 (US Large Cap)

Metrics

Metric αc Compound Portfolio IV S&P 500 (US Large Cap)
Initial Balance $10,000 $10,000
Final Balance $8,537,916 $69,140
Returns
Month-To-Date 4.01% 2.94%
Year-To-Date 8.17% 18.25%
3M 4.94% 5.54%
6M 5.64% 15.19%
Annual Return (1Y) 21.36% 38.8%
Annual Return (3Y) 40.43% 18.13%
Annual Return (5Y) 41.02% 17.33%
Annual Return (10Y) 33.14% 15.16%
Annual Return (All) 33.12% 8.54%
Enh Ann Return 33.75% 10.51%
Best Year 111.93% 32.31%
Worst Year -28.62% -36.81%
Risk
Annual Volatility 23.74% 19.79%
Max Drawdown -44.06% -55.2%
Sharpe Ratio 1.33 0.51
Sortino Ratio 1.99 0.73
Enhanced Sortino 2.31 1.16

  • Initial balance: The amount of starting capital used to invest in the asset or portfolio. In this case, we're starting with a $10,000 investment on December 1997.
  • Final balance: The amount of capital we've accrued over time as of July 2021.
  • Annual return: Also known as annualized return, or CAGR (Compound Annual Growth Rate), measures how much an investment has increased on average each year, during a specific time period. The time period in this case is approximately 24 year(s). Even a small difference in return can have a big impact on the final balance over a long period of time.
  • Annual volatility: Basically indicates how much, in percentage points, the investment can deviate from its annual return, under most circumstances. An investment with an annual return of 5% and an annual volatility of 10% would indicate returns from approximately -5% to 15% most of the time. A lower volatility is usually preferred to ensure more steady returns over time.
  • Best year: The best performance attained over its lifetime in a given year.
  • Worst year: The worst performance undergone over its lifetime in a given year.
  • Max drawdown: The largest percentage drop from a peak to a trough of an asset or portfolio, before a new peak is attained. Maximum drawdown is an indicator of downside risk over a specified time period.
  • Sharpe Ratio: The Sharpe ratio measures the performance of an investment compared to a risk-free asset, after adjusting for its risk. A Sharpe Ratio above 1 is considered good.
  • Sortino Ratio: The Sortino Ratio is a variation of the Sharpe ratio that only penalizes the investment for negative volatility/outcomes, and not for positive volatility. A Sortino Ratio above 1 is considered good.

Chart

Table

Year αc Compound Portfolio IV S&P 500 (US Large Cap) Won
1997 0% 0%  =
1998 111.93% 28.69%
1999 59.6% 20.39%
2000 -6.88% -9.73%
2001 39.68% -11.75%
2002 11.52% -21.59%
2003 84.37% 28.18%
2004 28.65% 10.7%
2005 27.66% 4.83%
2006 40.56% 15.85%
2007 36.74% 5.14%
2008 -28.62% -36.81%
2009 53.32% 26.37%
2010 35.49% 15.06%
2011 17.2% 1.89%
2012 36.33% 15.99%
2013 48.94% 32.31%
2014 13.09% 13.46%
2015 21.62% 1.25%
2016 17.45% 12%
2017 42.14% 21.7%
2018 16.46% -4.56%
2019 54.43% 31.22%
2020 89.69% 18.37%
2021 8.17% 18.25%

αc Compound Portfolio IV had 22 positive years and 2 negative years. That's a positive ratio of 92%.

S&P 500 (US Large Cap) had 19 positive years and 5 negative years. That's a positive ratio of 79%.

αc Compound Portfolio IV had a better yearly return 92% of the time compared to S&P 500 (US Large Cap).

Table

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
1997 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
1998 1.4% 22% -1.4% 8.5% -2.9% 18.6% -1.8% -22% 18% 3.1% 13.8% 31.1% 82.4%
1999 25.5% -3.4% -3.8% 9.1% -6.4% 6.6% 1.9% -6.5% 0.3% 6.1% 15.8% 7.2% 53.8%
2000 -4.8% 26.5% 0.1% -5.3% -9.6% -5.3% -2% 12.1% -5.3% -8.4% -5.2% 5.3% -2.2%
2001 4.2% -3.1% 1.6% 4.8% 5.7% 0.7% -3.1% 0.5% -6.2% 9% 10.9% 10.4% 36.8%
2002 3.7% 2.6% 4.3% 0.2% -0.1% -4.4% -10.7% 2.5% -3% 4.9% 4.5% 7.8% 14.6%
2003 0.1% -4% -0.4% 12.6% 11% 0.5% 9.6% 6.6% 7.1% 15.9% 2.6% 2.9% 63.4%
2004 6.9% 2.3% 1.1% -1.4% 3.2% 5.5% -9.8% 0.8% -1.5% 8.4% 8.3% 3.1% 27.1%
2005 -1.9% -0.2% -3.8% -4.8% 5.9% 4.7% 8% 3.8% 6.1% 0.5% 10.7% -2.9% 26.1%
2006 2% 2.7% 5.3% -0.3% -4.2% 0.6% 3.8% 3.5% 4.3% 8.4% 2.9% 6.1% 35.3%
2007 0.7% -2.1% 5.8% 12.4% 7.9% -4% 0.9% 11% 5.1% 6.4% -9.8% -0.3% 34%
2008 -5.3% -4.6% 2.8% 4.8% 2% -7.6% 8.2% 3.6% -6.8% -16.6% -10.9% 0.4% -27.8%
2009 -3.3% -3.5% 5.4% 15.8% 1.5% 7.4% 7.3% 5.5% 0.8% 1.2% 2.7% 4.1% 45.6%
2010 -2.6% 1.8% 8.8% 8.1% -3.1% -0.9% 1.1% -4.2% 9.4% 5.1% 3.6% 4.8% 32.2%
2011 1.9% 3.8% 1.7% 5.6% -0.4% 0.2% 1.4% -2.7% -3.3% 9.7% 0.7% -1.9% 18.8%
2012 6.2% 5.4% 7.8% 1% -2.9% 5.6% -2.3% 4.6% 6.5% -2.1% 0.7% 1.5% 32%
2013 4.9% 0.6% 3.4% -0.6% 3.2% 1.3% 7.6% 0.9% 8.6% 4.6% 3.7% 2.6% 40.8%
2014 -3.5% 2% 0.8% -3.5% -0.5% 2% -1.2% 4.1% -0.9% 8.8% 3.1% 1.7% 13.3%
2015 -0.1% 4.8% 0.8% -4.5% 1.1% 1.8% 4.1% -2.9% 4.1% 7.9% 4.4% -1.2% 20.9%
2016 -5.6% -3.4% 6.7% -0.2% 5% 3.1% 4.8% 2.8% -0.1% -2.3% 5.7% 0.5% 17.5%
2017 0.4% 5.3% 4.8% 3.6% 2.8% -0.9% 5.1% 0.7% 5.9% 5.3% 1.3% 1.6% 35.8%
2018 6.7% -0.8% 3.6% 5.1% 9.1% 5.3% 0.4% 10.8% -3.9% -7.8% -2.6% -8.4% 17.4%
2019 6.6% 7.5% 3% 6.6% -2.4% 8.9% 7.8% 2.2% -2% 1.7% 2.6% 2.5% 44.7%
2020 5.4% -4.2% -0.3% 17.9% 16.6% 8.8% 19.6% -5% 3.7% 4.4% -4% 6.9% 70.4%
2021 1% -3.4% -2.2% 6.4% -2.7% 5.2% 4% 0% 0% 0% 0% 0% 8.9%
Pos 66.7% 54.2% 75% 66.7% 54.2% 75% 70.8% 73.9% 56.5% 78.3% 78.3% 78.3% 91.7%
Avg 2.1% 2.3% 2.3% 4.3% 1.7% 2.7% 2.7% 1.4% 2% 3.2% 2.9% 3.7% 30.9%

Drawdown Periods

Simply said, a drawdown is the "pain" period experienced by an investor between a peak (new highs) and subsequent valley (a low point before moving higher). In the table below are the fifth largest drawdowns encountered for the portfolios/assets in question.

αc Compound Portfolio IV

start valley end Drawdown days
2007-11-01 2009-03-09 2010-01-13 -44.06% 804
1998-07-21 1998-10-08 1998-11-23 -31.52% 125
2000-03-29 2000-12-20 2001-12-06 -31.2% 617
2018-09-14 2018-12-24 2019-05-03 -26.67% 231
2020-02-20 2020-03-16 2020-04-24 -24.89% 64

The αc Compound Portfolio IV took approximately 12 months on average to recover from a major drawdown.

S&P 500 (US Large Cap)

start valley end Drawdown days
2007-10-10 2009-03-09 2012-08-16 -55.2% 1772
2000-03-27 2002-10-09 2006-10-26 -47.5% 2404
2020-02-20 2020-03-23 2020-08-10 -33.7% 172
2018-09-21 2018-12-24 2019-04-12 -19.34% 203
1998-07-21 1998-08-31 1998-11-23 -19.03% 125

The S&P 500 (US Large Cap) took approximately 31 months on average to recover from a major drawdown.

Underwater plot

The underwater plot shows you the drawdown periods on a chart. Whereas the performance chart usually gives you a positive viewpoint, the underwater plot gives you a pessimistic viewpoint. It helps you to visualize downtrends that occurred and how long it took for the portfolio's value to rebound to hit a new high after suffering a loss.