Comparison - Lazy Portfolio ETF (2024)

FAQs

Which lazy portfolio is best? ›

Of the four, VWINX or VBIAX were better choices for those seeking lazy portfolios – in fact, because you don't have to rebalance the recipes yourself, they're lazier than the Lazy Eight! By contrast, tactical portfolios t. cvar and t. loss provided higher returns for those willing to rebalance their recipes monthly.

One option for a solid three-ETF portfolio could be to include the Schwab U.S. Dividend Equity ETF (SCHD), the Vanguard S&P 500 ETF (VOO), and the Invesco QQQ Trust (QQQ). The SCHD ETF focuses on high-quality dividend stocks, which can provide stable income and potential long-term growth.

The Tyler Golden Butterfly Portfolio is a High Risk portfolio and can be implemented with 5 ETFs. It's exposed for 40% on the Stock Market and for 20% on Commodities. In the last 30 Years, the Tyler Golden Butterfly Portfolio obtained a 7.68% compound annual return, with a 7.75% standard deviation.

The current David Swensen Lazy Portfolio Sharpe ratio is 1.48.

Building Your Lazy Portfolio

The 3 funds are US stocks (total US stock market), international stocks (total international stock market), and bonds. “It really can be that simple. You can buy an ETF for each of the three funds, set it and forget it.” said Zigmont.

Ramsey's recommendation is to invest 100% of your portfolio in stocks, with no allocation to bonds or other fixed-income investments. He believes that over the long term, stocks will outperform other asset classes, and that a well-diversified stock portfolio is the best way to build wealth.

Average Return

In the past year, QQQ returned a total of 30.38%, which is higher than VOO's 27.99% return. Over the past 10 years, QQQ has had annualized average returns of 18.30% , compared to 12.63% for VOO. These numbers are adjusted for stock splits and include dividends.

About Ray Dalio's All Weather

Ray Dalio's All Weather portfolio is an investment strategy designed to perform well across different economic conditions. The goal of the All Weather portfolio is to generate consistent returns while minimizing risk, regardless of the economic environment.

Is the Permanent Portfolio A Good investment? ›

A permanent portfolio is composed of equal parts stocks, bonds, gold, and cash. Historical performance has shown a permanent portfolio to perform well in the long-term but not as well as a traditional 60/40 stock-bond portfolio.

a useful tactical allocation. We believe that gold and gold-related equities should constitute 10% and 0-5% of a portfolio, respectively. robust liquidity and historic resilience make it a valued asset during times of economic stress.

A typical asset allocation for a lazy portfolio would be about 60% US stocks, 20% international stocks and 20% bonds. If you want to be a little less lazy, you can get more creative with your fund choices.

A Sharpe ratio less than 1 is considered bad. From 1 to 1.99 is considered adequate/good, from 2 to 2.99 is considered very good, and greater than 3 is considered excellent. The higher a fund's Sharpe ratio, the better its returns have been relative to the amount of investment risk taken.

Maximum Sharpe ratio portfolio (i.e. tangency portfolio)

A particular portfolio on the efficient side of the mean-variance frontier constructed using risky assets is the tangency portfolio. This portfolio lies on the mean-variance frontier of risky assets and achieves the maximum possible Sharpe ratio.

1. The market portfolio is an efficient portfolio: its allocation provides the only optimal mix of risky assets; 2. For each asset, its expected return follows a simple linear relationship with the expected return of the market portfolio.

A good way to minimize risk is by creating a diversified and balanced portfolio with stocks, bonds, and cash that aligns with your short- and long-term goals. From there, you can broaden your portfolio to include other assets like real estate or high-risk investments for an increased likelihood of higher returns.

The common rule of asset allocation by age is that you should hold a percentage of stocks that is equal to 100 minus your age. So if you're 40, you should hold 60% of your portfolio in stocks. Since life expectancy is growing, changing that rule to 110 minus your age or 120 minus your age may be more appropriate.

Three-fund lazy portfolios

These usually consist of three equal parts of bonds (total bond market or TIPS), total US market and total international market.