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Simple Path to Wealth

Popularized by JL Collins, is a straightforward, low-maintenance investment strategy designed for long-term wealth building. The core of this portfolio consists of just two asset classes: 75% allocated to U.S. stocks and 25% allocated to U.S. bonds. This structure aims for a diversified, cost-efficient portfolio that balances growth potential and risk management.

Optimize
Annual Rebalancing
EUR
Moderate Risk
14.2yr backtest

Performance Summary

Total Return+379.76%
Annualized Return+11.65%
Volatility+12.68%
Sharpe Ratio0.76
Max Drawdown+26.10%

Holdings

Asset Allocation

Asset Class

Equity 75.0%Bonds 25.0%
Holdings Details
Discover the Simple Path to Wealth portfolio, a diversified ETF strategy for long-term growth. 75% US stocks, 25% bonds, low-maintenance wealth building.
AssetTypeAllocationTER
SXR8.XETRA
iShares Core S&P 500 UCITS ETF USD (Acc)IE00B5BMR087
ETF
75.0%0.07%
EUNX.XETRA
iShares US Aggregate Bond UCITS ETF (Dist)IE00B44CGS96
ETF
25.0%0.25%
Total100.0%0.12%

Performance

Portfolio Value Over Time
Starting with 10,000 investment → now worth €47,976.24
Histogram of Monthly Returns
The portfolio had a positive return during 107 of the 172 months (62%)
Monthly Returns Heatmap
Best month: +9.7% • Worst month: -7.6% • Best year: 2021 (+32.2%) • Worst year: 2022 (-12.6%)
YearJanFebMarAprMayJunJulAugSepOctNovDecTotal
2026-0.6%+0.3%-2.7%+2.9%---------0.3%
2025+3.2%-2.3%-7.6%-5.1%+4.8%+0.5%+5.3%-1.1%+2.3%+4.2%-0.4%-0.6%+2.4%
2024+3.5%+3.1%+3.0%-2.0%+0.9%+5.9%-0.2%-0.6%+1.4%+2.1%+7.5%-0.8%+26.0%
2023+3.1%+0.7%+0.3%-0.1%+3.6%+2.5%+1.5%+0.6%-1.6%-2.7%+4.7%+3.5%+17.1%
2022-4.7%-1.8%+4.2%-1.9%-3.3%-4.2%+9.7%-1.4%-4.4%+2.9%-1.9%-5.5%-12.6%
2021+0.9%+2.1%+5.9%+1.5%-1.2%+5.3%+2.0%+3.0%-1.4%+4.6%+2.5%+3.2%+32.2%
2020+1.5%-6.2%-6.9%+8.5%+1.1%+0.7%-0.7%+4.7%-0.9%-1.8%+5.4%+0.2%+4.5%
2019+6.2%+3.4%+3.0%+3.1%-3.4%+2.9%+4.5%-0.4%+2.3%-0.8%+4.4%+0.8%+28.8%
2018-0.2%-0.6%-3.5%+3.0%+5.0%+0.7%+2.0%+3.3%+0.4%-2.9%+0.8%-7.1%+0.3%
2017-1.9%+5.4%-0.6%-1.2%-2.0%-0.8%-1.7%-0.6%+2.0%+3.4%-0.1%+1.0%+2.7%
2016-4.3%+1.4%-0.4%-0.7%+4.6%+0.4%+2.8%+0.1%-0.6%+1.0%+6.1%+2.1%+12.7%
2015+5.1%+4.5%+3.5%-3.4%+2.4%-3.2%+2.9%-6.1%-1.8%+8.2%+4.2%-3.6%+12.2%
2014+0.0%+1.3%+0.4%+0.0%+3.9%+1.3%+1.6%+4.6%+3.4%+2.1%+3.3%+2.9%+27.7%
2013+1.6%+5.2%+4.6%-1.3%+4.4%-2.7%+1.9%-2.3%+0.2%+3.5%+2.1%+0.2%+18.5%
2012-2.2%+1.4%+2.5%+0.1%+2.2%+0.5%+5.0%-0.8%-0.5%-2.6%+0.2%-1.5%+4.1%
> +2%
0% to +2%
-2% to 0%
< -2%
Drawdown Analysis
Maximum drawdown: +26.10% • The longest drawdown period lasted for 1 year and 3 months and was between August 2022 and December 2023. It reached a trough of -13.4%.

Dividend Income

Summary
This portfolio contains 1 distributing ETF (25.0% of total allocation)

Total Dividends Received

2,007.81

24 payments

Dividend Yield

0.55%

(annualized)

Avg Per Payment

83.66

per event

All dividends are automatically reinvested at the payment date. The portfolio value shown includes the compounding effect of dividend reinvestment.

Annual Breakdown
Dividend income per calendar year
YearDividends
2025416.68
2024342.07
2023246.70
2022181.01
2021118.43
2020141.57
2019148.67
2018127.07
201796.08
201672.85
201568.03
201448.66
Total2,007.81

Detailed Metrics

Returns
Total Return
+379.76%
Annualized Return
+11.65%
Avg Monthly Return
+0.97%
Risk
Volatility (Annual)
+12.68%
Max Drawdown
+26.10%
Positive Months
62%
Average Drawdown
-4.0%
Risk-Adjusted
Sharpe Ratio
0.76
Risk-free rate: 2.0%
Sortino Ratio
0.72
Downside risk adjusted
Return/Volatility
0.92
Calmar Ratio
0.45
Return/Max Drawdown
Ulcer Index
5.13
Drawdown depth & duration
Martin Ratio
0.02
Return/Ulcer Index
Backtest Configuration
Initial Investment
10,000
Final Value
47,976.24
Backtest Period
2012-01-16 to 2026-04-10
14.2 years
Rebalancing
annual
Base Currency
EUR