IWM 34% · VTV 33% · VUG 33% CAGR +9.9%
SPY CAGR +12.0%
Shaded: major market crises Bear Market (2022)
IWM + VTV + VUG
IWM 34% · VTV 33% · VUG 33% · U.S. small & mid cap · U.S. value · U.S. growth
5yr · 2021.10 – 2026.10 · $10,000 lump sum · monthly rebalancing · dividends reinvested · no taxes or fees · month-end
Final Balance $16,016
Invested $10,000
Gain +$6,016
SPY alone: $17,597
Annualized return +9.9%
2.1pp behind SPY
Max drawdown · month-end -24.4%
17 months from trough to recovery
SPY -23.9%
Loss after a 1-year hold 12%
6 of 49 past windows
None when held 3+ years
SPY 12%
Performance ⌄
Performance
Over 5 years it grew 1.6x; SPY grew 1.8x over the same period.
Calendar-year returns
Of 4 complete years: 1 with a loss, 0 ahead of SPY.
Show as a table
| Year | Selected allocation | SPY | In-year low |
|---|---|---|---|
| 2025 | +16.0% | +17.7% | -9.5% |
| 2024 | +20.0% | +24.9% | -5.0% |
| 2023 | +23.8% | +26.2% | -11.2% |
| 2022 | -19.3% | -18.2% | -24.4% |
Depending on when you bought
Every month in the window taken as a start, held one, three or five years.
Observed windows overlap and are not independent samples. These shares are not probabilities of future gains.
Risk & recovery
The deepest fall was -24.4%, regained 17 months after the low. During the Bear Market (2022) it returned -19.0%, while SPY returned -19.7%.
Holdings
Every holding is in equities. Its dividend yield over the last 12 months was 1.1%; the results reinvest dividends.
- IWMiShares Russell 2000 ETF 34%
A U.S. small-cap ETF tracking the Russell 2000 Index.
- VTVVanguard Morningstar Value ETF 33%
- VUGVanguard Morningstar Growth ETF 33%
Questions & methodology
What does the IWM + VTV + VUG portfolio hold?
iShares Russell 2000 ETF (IWM): A U.S. small-cap ETF tracking the Russell 2000 Index. Vanguard Morningstar Value ETF (VTV) Vanguard Morningstar Growth ETF (VUG)
What were the return and risk of the IWM + VTV + VUG portfolio?
From 2021.10 to 2026.10, the annualized return was +9.9% and the largest month-end drawdown was -24.4%. The Sharpe ratio (return for the risk) is 0.42.
How did it compare with holding SPY alone?
From 2021.10 to 2026.10, the annualized return was +9.9% for these weights and +12.0% for SPY. Over the same window the largest month-end drawdown was -24.4% for these weights and -23.9% for SPY.
How far did the IWM + VTV + VUG portfolio fall, and how long did it take to get back?
Over the selected 5 years, the largest month-end decline was -24.4%, from a high in 2021.12 to a low in 2022.09. It regained the old high 17 months after the low.
Are dividends, taxes and exchange rates included?
Dividends are reinvested and results are in USD. Taxes, currency moves against your home currency and trading fees are not included. These results use US-listed ETFs; Korea-listed ETFs such as KODEX and TIGER can be added in the backtest.
The server calculates portfolio examples and actual user allocations with the same period, starting balance and settings. Validated metrics and their supporting charts are shown together.
Price data through: 2026.10.30