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
-
1.33αc Compound Portfolio IV
-
0.51S&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% |
| Annualized Return (1Y) | 21.36% | 38.8% |
| Annualized Return (3Y) | 40.43% | 18.13% |
| Annualized Return (5Y) | 41.02% | 17.33% |
| Annualized Return (10Y) | 33.14% | 15.16% |
| Annualized 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.