EXPLORE / ALLOCATION CHANGES
Portfolio allocation comparisons
Compare how changing an asset, weight, geography, duration, or weighting rule alters the portfolio trade-off.
COMPARISONS IN THIS TOPIC
Start with the decision you want to test.
Each example keeps the portfolio rules visible so the measured difference remains interpretable.
VTI Allocation Test
BASE100% VTI · $10,000 initial
→CHANGE90% VTI / 10% GLD, or 70% VTI / 30% BND
Moving 10% from VTI to GLD changed ending value by $276 and maximum drawdown by +1.7 pts versus 100% VTI.
Gold: 0% vs 10% vs 20%
BASE60% equities / 40% bonds / 0% gold
→CHANGE10% and 20% gold funded from equities
In this particular window, higher gold weights improved both return and drawdown: 20% gold added $1,397 and reduced maximum drawdown by 2.65 points. The result should be stress-tested because the period includes an unusually strong recent gold cycle.
Three-Fund vs 60/40
BASE60% US equities / 40% US bonds
→CHANGEUS equity / international equity / bond portfolio
Adding an 18% international-equity sleeve lowered the ending value by $1,919 and did not improve maximum drawdown in this US-led decade. That is evidence of period dependence, not proof that international diversification is structurally ineffective.
US vs Global Equity
BASEUS-only equity sleeve
→CHANGEUS and international equity sleeve
The global-equity sleeve lagged the US-only version by 0.88 percentage points annualized in a decade dominated by US equities. Its maximum drawdown was 0.34 points deeper, showing that diversification can disappoint for a long interval without becoming logically invalid.
Short vs Long Duration
BASEIntermediate-duration bond sleeve
→CHANGEShort- and long-duration bond sleeves
The short-duration sleeve produced the highest ending value and the shallowest drawdown. Long-duration Treasuries finished $3,326 below the BND baseline and had a 6.48-point deeper drawdown, largely reflecting the 2022 rate shock.
Equal vs Market-Cap Weight
BASEMarket-cap-weighted equity sleeve
→CHANGEEqual-weighted equity sleeve
The market-cap-weighted portfolio ended $4,102 higher and had a 3.11-point shallower drawdown. This window strongly rewarded mega-cap leadership; the result measures that historical regime, not an unconditional superiority of cap weighting.
60/40 vs 40/60
BASE60% US equities / 40% US bonds
→CHANGE40% US equities / 60% US bonds
The 40/60 portfolio finished at $12,966 versus $15,978 for 60/40 over the same snapshot window.