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Medium-Risk Portfolios

This page displays medium-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:

Very High-Risk Portfolios

High-Risk Portfolios

Low-Risk Portfolios

Very Low-Risk Portfolios

This page is displaying the medium-risk portfolios. They are suited for medium-term savings or when you simply cannot see yourself going through a large draw-down that the high risk portfolios potentially will expose you to.

Medium-risk portfolios

Portfolio nameAsset AllocationAsset class count1 year return (2019)Year to date10 year returnCAGR since 1989STDEVSharpeDrawdownYield
Rick Ferri's Core 4 fund Portfolio (60/40)420.18%1.89%8.16%8.22%10.32%0.55-21.41%2.24%
7Twelve Portfolio1218.56%0.18%6.15%7.95%10.35%0.53-23.15%1.66%
David Swensen's Portfolio621.43%1.64%8.62%8.99%11.53%0.57-25.96%2.05%
Index Fund Advisors, Portfolio 601616.85%-0.01%7.25%8.25%10.65%0.54-22.03%2.14%
The Talmud Portfolio322.90%2.51%9.93%9.51%10.85%0.64-24.00%2.41%
Ted Aronson Family Taxable Portfolio1121.10%1.00%8.70%8.86%13.09%0.5-26.33%1.93%
Allan Roth Second Grader Medium Risk Portfolio320.11%1.86%8.06%8.08%10.70%0.53-21.56%2.17%
Allan Roth Second Grader Five-Fund Medium Risk Portfolio420.03%1.83%8.02%8.11%10.44%0.54-21.56%2.23%
Allan Roth Second Grader Medium Risk with CDs Portfolio317.48%1.36%6.78%6.84%10.43%0.42-22.77%1.87%
Frank Armstrong Ideal Index Portfolio718.54%0.42%7.10%7.49%11.36%0.44-25.75%2.22%
Scott Burns Five Fold519.46%1.46%7.86%8.12%10.05%0.54-23.04%1.74%
Scott Burns Six Ways from Sunday618.43%-0.20%6.96%8.62%11.06%0.56-26.35%2.16%
Larry Swedroe Simple Portfolio617.00%-0.54%7.57%8.64%11.12%0.55-23.80%1.55%
The Global Market Portfolio, Financial Engines 20071520.24%1.46%8.12%8.45%11.33%0.54-22.97%1.91%
Robo Advisor Betterment 601018.57%0.88%7.43%8.43%11.14%0.54-22.52%2.15%
Robo Advisor Wealthfront 40720.59%1.46%8.41%8.81%11.31%0.56-25.05%2.79%
Rick Ferri Early Saver Moderate Basic Portfolio422.13%1.99%8.91%8.56%11.68%0.53-25.77%2.29%
Rick Ferri Midlife Moderate Basic Portfolio420.24%1.92%8.21%8.28%10.21%0.56-21.34%2.25%
Rick Ferri Midlifer Moderate Multi Asset Portfolio1119.62%0.69%8.50%8.86%11.31%0.56-24.26%2.24%
Rick Ferri Transitional Moderate Multi Asset Portfolio1218.07%0.79%7.87%8.48%9.93%0.59-20.61%2.21%
Balanced Portfolio 70/30224.18%2.81%10.63%9.50%12.65%0.58-24.35%1.88%
Index Fund Advisors, Portfolio 701618.62%-0.18%8.06%8.83%12.29%0.52-25.91%2.21%
Paul Merriman's Target Date Portfolio (55 year old)1419.47%-0.57%8.82%9.34%12.86%0.54-25.97%2.08%
iShares LifePath Index 2030 Fund (55 year old)722.03%1.87%8.71%8.42%11.68%0.52-26.15%2.20%
BlackRock Model Portfolio 70% Stocks421.41%1.73%8.32%7.99%12.36%0.46-26.37%2.12%
BlackRock Model Portfolio 65% Stocks420.67%1.78%8.18%8.00%11.52%0.49-23.97%2.05%
JL Collins, Simple Path To Wealth, Wealth Preservation Portfolio225.28%2.91%11.10%9.69%13.47%0.56-26.45%1.86%
Paul Merriman's FundAdvice Ultimate Buy and Hold1316.61%0.12%6.77%8.13%10.49%0.53-21.14%2.17%
TD Ameritrade Core Portfolio Growth521.58%1.79%8.43%8.08%12.32%0.47-26.28%2.16%
Vanguard Target Retirement 2030 (55 year old)421.54%1.77%8.43%8.05%12.38%0.46-26.38%2.09%
Merrill Lynch Edge Select Portfolio, Moderately1219.44%1.83%7.84%8.52%10.35%0.58-20.21%2.17%
David Booth (DFA) Normal Portfolio1517.76%0.62%7.54%8.29%10.09%0.57-21.24%2.24%
Vanguard LifeStrategy Moderate Growth (60/40)419.67%1.72%7.81%7.84%10.75%0.5-21.87%2.03%
William Bernstein’s Sheltered Sam Portfolio1217.58%0.51%7.35%8.26%9.78%0.58-21.03%1.83%
T. Rowe Price ActivePlus Portfolio, Model 60420.26%1.85%8.20%8.20%10.75%0.53-21.97%1.99%
T. Rowe Price ActivePlus Portfolio, Model 70422.21%1.99%8.93%8.44%12.33%0.5-26.08%2.08%
Schwab Target Date Fund 2030 (55 year old)821.51%1.79%8.49%8.49%11.86%0.52-25.62%2.18%
Schwab Managed Portfolio, Balanced With Growth1119.45%0.69%6.87%7.85%10.88%0.5-25.01%2.18%
Time.Inc Money Portfolio 1, Simple and Cheap519.84%1.80%8.00%8.11%10.12%0.55-21.51%2.16%
Time.Inc Money Portfolio 2, Tilt Toward Value719.65%1.56%8.29%8.38%9.99%0.58-20.85%2.14%
Meb Faber's GTAA Conservative1118.06%0.30%6.09%8.46%9.79%0.62-21.62%2.14%
Morningstar Lifetime Allocation Index Moderate, 20301821.12%0.98%8.17%8.79%11.99%0.54-26.61%2.12%
Morningstar Lifetime Allocation Index Conservative, 20401821.08%0.99%8.16%8.82%12.12%0.54-26.55%2.21%
Dimensional 2030 Target Date Retirement Income Fund818.80%1.26%7.29%8.07%10.50%0.54-22.61%1.51%
Dan Solin SuperSmart Portfolio, Medium816.48%0.10%6.84%8.27%10.15%0.56-21.07%2.14%
Dan Solin The Smartest ETF Portfolio, Medium Risk217.48%1.04%6.05%6.67%10.49%0.4-22.77%1.96%
Dan Solin The Smartest Index Portfolio, Medium Risk320.30%1.94%8.22%8.19%10.71%0.54-21.41%2.14%
TIAA-CREF Lifecycle 2030622.01%1.94%8.89%8.77%12.37%0.53-25.50%2.10%
William Bernstein Taxable Ted 70/30521.29%1.65%9.10%8.51%11.66%0.52-25.76%2.19%
William Bernstein Sheltered Sam 60/401218.14%0.61%7.73%8.43%10.34%0.57-23.73%1.96%
William Bernstein Sheltered Sam 50/501216.24%0.58%6.97%8.00%9.06%0.59-20.42%1.84%
Goldman Sachs Target Date 2035 Portfolio1221.20%1.66%8.31%8.51%11.73%0.52-26.06%2.24%
Rick Ferri Total Economy Core-4 Portfolio Moderate419.21%1.08%7.64%8.03%10.13%0.54-21.79%2.19%
Rick Ferri Global Markets Core-4 Moderate420.31%1.98%8.39%8.12%10.63%0.53-20.86%1.97%
Rick Ferri Income Seeker Core-4 Portfolio Moderate418.81%0.69%8.64%8.34%11.14%0.53-26.00%3.27%
Rick Ferri Socially Conscious ESG Core-4 Portfolio Moderate420.96%2.11%8.68%8.37%10.83%0.55-21.43%2.13%
3 Fund Portfolio 60/40320.39%1.97%8.34%8.15%10.62%0.54-20.90%2.13%
3 Fund Portfolio Equal Weight320.63%1.58%7.88%7.63%11.71%0.45-24.50%2.29%
Paul Merriman Ultimate Buy & Hold Strategy 20101218.07%0.41%7.47%8.43%11.19%0.53-23.15%2.51%
FPL Capital Management Portfolio 60918.08%0.30%8.37%9.15%10.36%0.64-21.58%2.58%
FPL Capital Management Portfolio 70919.64%0.11%9.10%9.57%11.90%0.6-26.03%2.65%
Fundamentum Enhanced Index Focus Moderate521.20%2.22%8.97%8.63%10.97%0.57-21.57%1.93%
Assetbuilder.com Portfolio 91417.11%0.09%7.44%8.93%11.46%0.56-22.64%2.11%
Robo Advisor Wealthsimple Portfolio Balanced920.84%1.56%8.22%8.84%11.78%0.56-24.89%2.48%
Robo Advisor WiseBanyan 60% stocks920.45%1.61%8.21%8.37%11.28%0.53-24.59%2.19%
Robo Advisor WiseBanyan 50% stocks918.66%1.53%7.61%8.13%9.80%0.57-20.70%2.18%

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 medium-risk portfolio is right for you?

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