Here are the lazy portfolios that portfolioeinstein.com track. A lazy portfolio is a portfolio that gives you a hands-off approach to investing for long periods of time. At most, they require a yearly rebalancing and nothing else.
Lazy Portfolios
Contents
- 1 Lazy Portfolios
- 1.1 Lazy Portfolios Performance
- 1.2 Asset allocation for lazy portfolios
- 1.2.1 David Swensen’s Portfolio
- 1.2.2 Bill Schultheis’ “Coffeehouse” Portfolio
- 1.2.3 Ted Aronson Family Taxable Portfolio
- 1.2.4 Allan Roth Second Grader High-Risk Portfolio
- 1.2.5 Scott Burns Margaritaville
- 1.2.6 William Bernstein’s No Brainer Portfolio
- 1.2.7 William Bernstein’s Cowards Portfolio
- 1.2.8 Paul Merriman’s FundAdvice Ultimate Buy and Hold
- 1.3 Alternatives to lazy portfolios
- 1.4 Conclusion
Lazy Portfolios Performance
| Portfolio Name | Number of asset classes | 1 year return 2018 | 10 year return | CAGR since 1989 | Risk Level | Market Correlation | Dollar Value |
|---|---|---|---|---|---|---|---|
| S&P 500 (Benchmark) | 1 | -4.52% | 12.97% | 9.84% | 5 - very high risk | 0.99 | $167,045.76 |
| David Swensen's Portfolio | 6 | -5.77% | 8.86% | 8.55% | 3 - medium risk | 0.89 | $117,264.69 |
| Bill Schultheis Coffeehouse Portfolio | 7 | -5.29% | 8.48% | 8.29% | 2 - low risk | 0.9 | $108,918.59 |
| Ted Aronson Family Taxable Portfolio | 11 | -7.66% | 9.14% | 8.36% | 3 - medium risk | 0.89 | $111,316.36 |
| Allan Roth Second Grader High Risk Portfolio | 3 | -7.50% | 10.23% | 8.10% | 5 - very high risk | 0.97 | $103,558.43 |
| Scott Burns Margaritaville | 3 | -7.04% | 7.95% | 7.24% | 4 - high risk | 0.92 | $81,473.03 |
| William Bernstein No Brainer Portfolio | 4 | -6.76% | 8.68% | 7.68% | 4 - high risk | 0.95 | $91,983.79 |
| William Bernstein Cowards Portfolio | 9 | -4.88% | 7.38% | 7.88% | 2 - low risk | 0.93 | $97,354.23 |
| Paul Merriman FundAdvice Ultimate Buy and Hold | 13 | -7.18% | 7.37% | 7.95% | 3 - medium risk | 0.83 | $99,272.22 |
You can find all the extended data, such as risk measurements and additional return periods of the portfolios over here.
Asset allocation for lazy portfolios
David Swensen’s Portfolio
- 30.00% US Total Stock Market (VTI)
- 20.00% REITs (VNQ)
- 5.00% Emerging Markets (VWO)
- 15.00% International All-World ex-US (VEU)
- 15.00% Intermediate-Term Treasuries (VGIT)
- 15.00% TIPS (VTIP)
Check out the article David Swensen Portfolio: Asset Allocation With A Punch to get a closer look.
Bill Schultheis’ “Coffeehouse” Portfolio
- 10.00% US Large Cap Value (VTV)
- 10.00% US Large Cap (VV)
- 10.00% US Small Cap Value (VIOV)
- 10.00% US Small Cap (VIOO)
- 10.00% REITs (VNQ)
- 10.00% International All-World ex-US (VEU)
- 40.00% Total US Bond Market (BND)
Our article Bill Schultheis: Coffeehouse Portfolio: Relax And Get On With Your Life Portfolio? explains why this is a great portfolio.
Ted Aronson Family Taxable Portfolio
- 5.00% US Total Stock Market (VTI)
- 15.00% US Large Cap (VV)
- 5.00% US Small Cap Value (VIOV)
- 10.00% US Small Cap (VIOO)
- 5.00% US Small Cap Growth (IJT)
- 10.00% Emerging Markets (VWO)
- 15.00% Pacific Stocks (VPL)
- 5.00% European Stocks (VGK)
- 10.00% Long Term Treasuries (TLT)
- 5.00% High Yield Corporate Bonds (HYG / JNK)
- 15.00% TIPS (VTIP)
Ted Aronson and his AJO Partners manage about $25 billion of institutional assets. Aronson puts his family’s taxable money in this well-diversified portfolio of no-load index funds.
Allan Roth Second Grader High-Risk Portfolio
- 60.00% US Total Stock Market (VTI)
- 30.00% International All-World ex-US (VEU)
- 10.00% Total US Bond Market (BND)
We have profiled all of Allan Roth’s portfolios over at Allan Roth Second Grader Portfolio: Beating The Hell Outa Wall Street?
Scott Burns Margaritaville
- 33.33% US Total Stock Market (VTI)
- 33.33% International All-World ex-US (VEU)
- 33.33% TIPS (VTIP)
Be sure to check out our page on Scott Burns’ portfolios over at The Couch Potato Portfolio: Two Fund Supremacy?
William Bernstein’s No Brainer Portfolio
- 25.00% US Large Cap (VV)
- 25.00% US Small Cap (VIOO)
- 25.00% International All-World ex-US (VEU)
- 25.00% Short Term Treasuries (VGSH)
William Bernstein, a former doctor, investment consultant and an all around good guy in the investing world has presented a host of portfolios through his career. His book, The Four Pillars of Investing: Lessons for Building a Winning Portfolio is required reading on investing. His investing philosophy is broad diversification, common sense and with a realistic expectation of future returns. Other books that come highly recommended are Rational Expectations: Asset Allocation for Investing Adults and The Intelligent Asset Allocator: How to Build Your Portfolio to Maximize Returns and Minimize Risk.
William Bernstein’s Cowards Portfolio
- 10.00% US Large Cap Value (VTV)
- 15.00% US Large Cap (VV)
- 10.00% US Small Cap Value (VIOV)
- 5.00% US Small Cap (VIOO)
- 5.00% REITs (VNQ)
- 5.00% Emerging Markets (VWO)
- 5.00% Pacific Stocks (VPL)
- 5.00% European Stocks (VGK)
- 40.00% Short Term Treasuries (VGSH)
Paul Merriman’s FundAdvice Ultimate Buy and Hold
- 6.00% US Large Cap Value (VTV)
- 6.00% US Large Cap (VV)
- 6.00% US Small Cap Value (VIOV)
- 6.00% US Small Cap (VIOO)
- 6.00% REITs (VNQ)
- 6.00% Emerging Markets (VWO)
- 6.00% International All-World ex-US (VEU)
- 6.00% International Large Cap Value (EFV)
- 6.00% International Small Cap Blend (VSS)
- 20.00% Intermediate-Term Treasuries (VGIT)
- 12.00% Short Term Treasuries (VGSH)
- 8.00% TIPS (VTIP)
- 6.00% International Small Cap Value (DLS)
We also have a specific page for all of Paul Merriman’s portfolio. Check it out at Paul Merriman Portfolios: Unbiased Outperformance.
If you need a primer on what lazy portfolios are you can read our post on lazy portfolios 5 Reasons Why A Lazy Portfolio Is Right For You.
Alternatives to lazy portfolios
The lazy portfolios are a varied bunch but if you want some great performance coupled with ease then be sure to also include 2 more groups of portfolios into your consideration. The first group is the 3 fund portfolio. The second is the many 4-fund portfolios by Rick Ferri.
Conclusion
Which portfolio do you use?
After having read up on the lazy portfolios I encourage you to find other great portfolios right here on portfolioeinstein.com.
If you have suggestions to new portfolios be sure to add them in comments or reach out to me.
I would love hearing from you!
