Andrew Tobias Portfolio, The Only Portfolio You Will Ever Need

Andrew Tobias investment Portfolio

Andrew Tobias’ portfolio is exposed to 66.6% stocks and 33.3% bonds. It can be built with just 3 ETFs. It is a medium-risk portfolio.

For the past 10 years, Andrew Tobias portfolio has returned 7.58% with a standard deviation of 12.22%. The current dividend yield is 1.6%. The 30-year return is 7.71%. Year to date Andrew Tobias portfolio has returned 1.49%. Last year it returned 20.26%.

What is the return of Andrew Tobias portfolio?

NameAsset class countYear to dateReturn in 201910 year returnCAGR since 1989 (%)Risk levelExpense ratio
The Andrew Tobias Portfolio31.4920.267.58%7.7120.04%

How do you build Andrew Tobias’ portfolios with ETFs?  

  • 33.33%  US Total Stock Market   (VTI)
  • 33.33%  International Developed     (VEA)
  • 33.33%  Short-term treasuries (SHY)

Who is Andrew Tobias?

Andrew Tobias is a lot of things. He is the author of 12 books. His most successful and most well-known book is The Only Investment Guide You’ll Ever Need.

The book was first published in 1978 and has been updated ever since. Don’t let the age of the book scare you. It is filled with ages-less wisdom and good money practices. It is also filled with investing tips.

The Only Investment Guide You'll Ever Need

His writing style is witty and self-deprecating which you can’t help to notice just by visiting his personal website at andrewtobias.com.

Andrew Tobias also served as the Treasurer of the Democratic National Committee for 18 years. 

Description of the Andrew Tobias portfolio

The portfolio by Andrew Tobias is much like the 3-fund-portfolio by Taylor Larimore and the bogleheads. The portfolio appears in his book mentioned above.

The portfolio is split equally among US stocks, international stocks, and bonds. It is a fairly conservative because of the large bond allocation. Andrew Tobias recommends you use VTI (total stock market), VEA (international developed) and SHY (treasuries). You are not going to get blow-out returns with this portfolio but you will sleep well – very well.

I couldn’t help to think of JL Collins (see his video) when I read the following in The Only Investment Guide You’ll Ever Need.

1. Go out for a very nice dinner.
2. Put about a year of normal living expenses someplace liquid, like a bank or money-market fund . . .
3. . . . and roughly equal sums into U.S. Treasury securities maturing in one, two, three, and four years.
4. Put the bulk of the remaining money into stock-index funds, split between domestic and foreign investments.
5. Buy a vacation home or bigger house, if you want one—but not so big that the cost of carrying it will in any way strain you.
a. Do not buy a boat.
6. Be sure your will is in order.
7. Now relax and forget the whole thing. Review it once a year, mainly to roll over your Treasury securities as they come due. Don’t spend any of the investment principal, but enjoy the extra income it throws off

–  Andrew Tobias – The Only Investment Guide You’ll Ever Need.

Resources for the Andrew Tobias portfolio

Here is Andrew Tobias in a short interview on what you can do with your finances, and what the greatest money pitfalls are for young people

You already know his website 

His book The Only Investment Guide You’ll Ever Need is well worth a read.

How we select the right ETFs

There are a lot of ETFs out there. Most of them can be discarded because:

  • They are too expensive
  • They hold too few assets and are therefore too illiquid
  • They do not meet the criteria for representing the asset class they are supposed to mirror.

We have carefully selected an ETF for each asset class that the portfolios on portfolioeinstein.com use. If you want to read more about our selection process and see what we consider the best ETFs please visit our article What Is The Best ETF?

If you are a European investor you need to buy European ETFs. We list 47 best ETFs in our article What Are The Best ETFs For European Investors? (Here Is 47).

As of 2020 we also track socially responsible investing ESG portfolios. Socially responsible investing (ESG) portfolios prioritize investing that puts an emphasis on environmental, social and corporate governance issues.

You can find the socially responsible investing ESG ETFs in the same article.

Suggestions for your next steps

Finding the correct portfolio is hard. Maintaining your portfolio is also daunting. If you are still in doubt about which portfolio to choose, we suggest you read our article How To Invest Money: 5 Simple Steps That Work For Anyone

If you have already committed to a portfolio – good for you! If you need help maintaining the portfolio you will find our rebalance worksheet useful. Rebalancing your portfolio lowers your risk and may even provide higher returns in the long run.

You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool

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