Here Is How Portfolio Einstein Helps You

  • Get higher returns in 401k
  • Get higher returns in your ROTH IRA
  • Optimize your college savings account
  • Get your your house purchase on track
  • Bring down expense in your family office 

High-Risk Portfolios

This page displays high-risk portfolios available on portfolioeinstein.com.

Some words on risk

Risk comes in many shapes and forms. In academia and in much of the investing industry, risk in investing is measured by standard deviation (a measure of how much the price of an asset bounces around).

Now, a standard deviation is, well – academic. This is because, for you and me, the risk is the pain we go through when we lose money.  That pain is called draw-down. The draw-down of a portfolio is the amount of money the portfolio will lose in a  given year. So, for example, a portfolio with a draw-down of -20% has at some point lost 20% of its value. That’s a good indication of what could happen in the future.

Now, that’s pretty actionable information that we can plan around and relate to.

A rough rule of thumb is that for each 20% of stocks a portfolio has it has a draw-down of -10%. So a 100% stock portfolio has potentially a draw-down of -50%. A 60% stock portfolio has a potential draw-down of -30%.

There are other forms of risk however but the draw-down is what we will focus on when dividing the portfolios into the various risk levels. You should also look at standard deviation as well as the stock to bond ratio.

How the risk levels are determined

We have given the portfolios a risk level from 1-5.

1 is the least risky but also offers the least reward.

5 is the riskiest but offers the most rewards.

The portfolios have been divided into quintiles. In the first quintile, the first 20% represent the portfolios that have the lowest draw-downs. The last 20% are the ones with the highest draw-downs.

You can find the other 4 risk portfolios here:

High-Risk Portfolios

Medium-Risk Portfolios

Low-Risk Portfolios

Very Low-Risk Portfolios

This page is displaying the high-risk portfolios. They are suited for long-term savings like retirement and college savings with many years to go before needing the money.

High-risk portfolios

Portfolio nameAsset AllocationAsset class count1 year return (2019)Year to date10 year returnCAGR since 1989STDEVSharpeDrawdownYield
Three Fund Portfolio (50-30-20)323.60%1.89%9.14%8.33%13.98%0.45-30.69%2.22%
Meb Faber's Ivy 5 Portfolio521.32%-0.28%6.08%7.54%11.76%0.45-31.51%2.37%
Meb Faber's Ivy 10 Portfolio920.08%-1.31%5.33%7.95%13.53%0.44-34.87%2.55%
Warren Buffett's Portfolio228.66%3.35%12.33%10.06%15.79%0.53-32.67%1.76%
Index Fund Advisors, Portfolio 801620.49%-0.34%9.03%9.46%14.19%0.52-30.83%2.28%
The Andrew Tobias Portfolio320.26%1.08%7.58%7.71%12.22%0.44-28.05%1.61%
Muhammad El-Erian Portfolio820.72%-0.05%6.14%8.40%13.16%0.48-31.14%2.32%
Scott Burns Margaritaville320.26%1.08%7.58%7.71%12.22%0.44-28.05%1.61%
Scott Burns Seven Value Portfolio719.51%-0.07%7.78%8.88%11.56%0.56-27.73%2.23%
Scott Burns Seven Value 2 Portfolio819.90%-0.36%8.31%9.19%12.10%0.57-28.25%2.15%
Scott Burns Nine Emerging Portfolio919.94%-0.55%7.84%9.54%13.53%0.55-30.97%2.26%
Scott Burns 10 Speed Portfolio1019.54%-0.69%7.46%9.14%13.88%0.51-32.27%2.49%
William Bernstein's No Brainer Portfolio420.96%0.94%8.34%8.06%12.88%0.45-27.62%1.91%
William Bernstein's Four Pillars High Risk Portfolio1119.20%0.30%7.17%8.25%12.36%0.48-27.41%2.36%
Robo Advisor Betterment 801022.09%0.80%8.59%9.01%14.39%0.48-31.32%2.29%
Robo Advisor Wealthfront 60722.20%1.27%8.76%9.14%13.25%0.52-30.30%2.81%
Gibson Five Asset Classes621.16%-0.32%5.98%7.54%11.96%0.44-32.05%2.28%
Rick Ferri Early Saver Moderate Multi Asset Portfolio1121.16%0.86%9.04%9.16%12.36%0.55-26.97%2.27%
Balanced Portfolio 80/20226.39%3.02%11.57%9.87%14.29%0.55-28.56%1.84%
Balanced Portfolio 90/10228.60%3.22%12.50%10.21%15.95%0.53-32.77%1.81%
BlackRock Model Portfolio 85% Stocks324.05%1.73%9.03%8.13%14.88%0.41-33.30%2.29%
BlackRock Model Portfolio 80% Stocks423.00%1.67%8.67%8.00%14.06%0.42-31.10%2.22%
Ben Stein Portfolio721.41%0.94%7.86%8.47%14.08%0.46-32.15%2.26%
Fidelity Freedom Index 2030 (55 year old)623.00%1.91%9.05%8.48%12.97%0.48-28.19%2.11%
TD Ameritrade Core Portfolio Aggressive524.43%1.90%9.42%8.36%14.82%0.43-32.96%2.19%
Morningstar Moderate Retirement Saver Portfolio523.47%1.57%9.51%9.00%13.86%0.5-29.81%2.14%
Vanguard Target Retirement 2040 (45 year old)424.32%1.85%9.31%8.29%14.86%0.43-33.10%2.18%
Merrill Lynch Edge Select Portfolio, Moderately Aggressive1222.48%1.99%8.79%8.98%12.92%0.53-27.27%2.16%
David Booth (DFA) Aggressive Portfolio1521.37%0.42%9.19%9.34%13.47%0.53-30.35%2.41%
Rick Ferri's Core 4 fund Portfolio (80/20)424.01%2.06%9.55%8.72%13.41%0.49-30.27%2.27%
Vanguard LifeStrategy Growth Fund (80/20)423.37%1.82%9.01%8.21%14.01%0.44-30.80%2.15%
T. Rowe Price ActivePlus Portfolio, Model 80324.16%2.11%9.63%8.65%13.95%0.47-30.27%2.14%
Schwab Target Date Fund 2040 (45 year old)824.33%1.81%9.42%8.95%14.39%0.48-32.48%2.24%
Schwab Managed Portfolio, Growth922.39%0.69%7.80%8.23%13.63%0.45-32.39%2.22%
Alpha Architect Robust820.53%1.00%9.07%9.96%12.09%0.64-29.32%2.15%
Meb Faber's GTAA Moderate1120.55%-0.43%6.32%8.77%12.65%0.53-31.93%2.30%
Morningstar Lifetime Allocation Index Aggressive, 20301824.27%0.98%9.24%9.23%14.71%0.49-33.93%2.18%
Morningstar Lifetime Allocation Index Conservative, 20601623.76%0.78%8.88%9.19%15.06%0.48-34.26%2.30%
Morningstar Lifetime Allocation Index Conservative, 20501623.46%0.89%8.88%9.16%14.47%0.49-32.78%2.27%
Burton Malkiel Portfolio, Late Thirties to Early Forties823.96%1.57%9.09%9.57%14.85%0.51-33.61%2.50%
Burton Malkiel Portfolio, Mid-Fifties823.32%1.68%9.02%9.55%13.69%0.54-31.08%2.56%
Burton Malkiel Portfolio, Late Sixties and Beyond821.78%1.80%8.68%9.27%11.74%0.59-26.51%2.55%
Dimensional 2040 Target Date Retirement Income Fund723.94%1.83%9.04%8.65%14.65%0.46-32.21%2.20%
Dan Solin SuperSmart Portfolio, Medium-High Risk820.81%0.03%8.63%9.36%13.56%0.53-30.29%2.36%
Dan Solin The Smartest ETF Portfolio, Medium-High Risk222.14%1.29%7.57%7.18%14.15%0.36-32.56%2.11%
Dan Solin The Smartest Index Portfolio, Medium-High Risk324.16%2.11%9.63%8.65%13.95%0.47-30.27%2.14%
TIAA-CREF Lifecycle 2040425.19%2.09%10.04%9.20%15.06%0.48-32.56%2.14%
William Bernstein Taxable Ted 90/10525.53%1.72%10.60%9.12%14.76%0.48-33.83%2.21%
William Bernstein Taxable Ted 80/20523.41%1.69%9.85%8.83%13.20%0.5-29.79%2.20%
William Bernstein Sheltered Sam 80/201221.92%0.65%9.21%9.21%13.03%0.54-30.34%2.20%
William Bernstein Sheltered Sam 70/301220.03%0.63%8.47%8.83%11.67%0.55-27.03%2.08%
William Bernstein Wendy Wonk Portfolio1119.20%0.30%7.17%8.25%12.36%0.48-27.41%2.36%
Goldman Sachs Target Date 2045 Portfolio1224.35%1.62%9.41%9.00%14.58%0.48-33.20%2.35%
Robo Advisor Betterment 701020.67%0.84%8.15%8.92%13.17%0.51-28.06%2.21%
Rick Ferri Total Economy Core-4 Portfolio Agressive422.70%0.97%8.86%8.47%13.21%0.47-30.77%2.22%
Rick Ferri Global Markets Core-4 Aggressive424.24%2.17%9.80%8.60%13.85%0.47-29.56%2.05%
Rick Ferri Inflation Fighter Core-4 Portfolio Moderate420.63%1.41%7.63%7.78%11.23%0.47-27.04%1.98%
Rick Ferri Income Seeker Core-4 Portfolio Aggressive420.26%0.23%9.44%8.61%13.12%0.49-30.92%3.47%
Rick Ferri Socially Conscious ESG Core-4 Portfolio Aggressive423.63%1.67%8.54%7.95%13.79%0.42-32.68%2.33%
3 Fund Portfolio 80/20324.29%2.16%9.78%8.61%13.84%0.47-29.59%2.13%
FPL Capital Management Portfolio 80921.20%-0.07%9.83%9.96%13.48%0.57-30.48%2.73%
Assetbuilder.com Portfolio 101218.74%-0.17%8.21%9.58%13.49%0.54-28.00%2.20%
Assetbuilder.com Portfolio 121220.36%-0.40%8.97%10.14%15.61%0.52-32.87%2.27%
Alexander Green Gone Fishin' Portfolio1021.44%0.83%7.74%8.67%13.48%0.48-28.87%2.21%
Robo Advisor WiseBanyan 80% stocks923.87%1.73%9.29%8.73%14.39%0.47-32.10%2.24%
Robo Advisor WiseBanyan 70% stocks922.12%1.67%8.74%8.56%12.76%0.49-28.22%2.20%

Disclaimer: There are many factors that go into choosing your right portfolio, though not as many as you would think. Therefore, the information here presented are not specific recommendations but instead for information purposes only.

Now it’s your turn!

Which portfolio are you leaning towards and why?

Why do you think a high-risk portfolio is right for you?

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