The data was obtained using the API from the website https://testfol.io/.
VTI/VXUS ranges were varied from 0 to 100. The starting year ranged from 1970 to 2020.
For each year, the volatility curve (standard deviation) x cagr was plotted. The optimized VTI/VXUS ratio occurs at the vertex of the curve.
With the value obtained (optimized VXUS proportion), the following graphs were plotted showing the 3 curves:
- CAGR/Volatility of 100% US allocation;
- CAGR/Volatility of optimized allocation;
- CAGR/Volatility of 100% ex-US allocation;
