Rick Ferri Portfolio, Can It Bring You Enough Returns?

The Rick Ferri portfolio is made by a former Navy pilot, Rick Ferri who is the author of six books (all extremely well written and very educational). He is the founder of Portfolio Solutions.  He is no longer a partner however as he sold his share in it. He has also often contributed to The Wall Street Journal, Forbes and the Journal of Financial Planning.  His book The Power of Passive Investing: More Wealth with Less Work is an absolute masterpiece. It is a very convincing argument about why you should use passive index funds instead of active funds. I like it especially for the extreme amount of research that has gone into the book and the effort that has gone into documenting and supporting his claims with evidence. 

Rick Ferri hosts the Bogleheads On Investing Podcast

 

If you read just one book of his, it should be Power of Passive Investing.

Rick Ferri Portfolio, Can It Bring You Enough Returns?

Rick Ferri is one of the 3 good guys of investing. He promotes:

  • Using low-cost index funds
  • Sticking with a well-defined strategy.
  • Keeping a keen eye on the cost of your investments.

You can read more about the 3 good guys of investing in our article Who Are The 3 Good Guys In Investing?

We have expanded this page to cover ALL of Rick Ferri’s many portfolios. We are tracking 32 portfolios right now.

Asset allocation piechart for the Rick Ferri Portfolio

We track 32 portfolios constructed by Rick Ferri. The asset allocation below is for Rick Ferri’s Core 4 fund Portfolio (60/40).

pic chart of Rick-ferri-core-4-Portfolio

 

Returns and risk for Rick Ferri’s portfolios

Portfolio NameNumber of asset classes1 year return 2019YTD (incl. December 2019)10 year returnCAGR since 1989DrawdownRisk Level
S&P 500 (Benchmark)
131.25%31.25%12.97%9.84%-37.71%5 - very high risk
4 Fund Portfolio420.24%20.24%8.14%7.80%-21.47%3 - medium risk
Rick Ferri Early Saver Moderate Basic Portfolio422.17%22.17%8.94%8.08%-25.82%3 - medium risk
Rick Ferri Early Saver Moderate Multi Asset Portfolio1121.12%21.12%9.39%8.90%-27.23%4 - high risk
Rick Ferri Midlife Moderate Basic Portfolio420.29%20.29%8.19%7.86%-21.40%3 - medium risk
Rick Ferri Midlifer Moderate Multi Asset Portfolio1119.32%19.32%8.92%8.63%-24.53%3 - medium risk
Rick Ferri Transitional Moderate Basic Portfolio518.20%18.20%7.31%7.49%-17.11%2 - low risk
Rick Ferri Transitional Moderate Multi Asset Portfolio1217.62%17.62%8.25%8.24%-20.84%3 - medium risk
Rick Ferri Mature Retired Saver Moderate Basic Portfolio615.50%15.50%6.24%7.08%-12.26%1 - very low risk
Rick Ferri Mature Retired Saver Moderate Multi Asset Portfolio1014.75%14.75%6.28%7.30%-12.61%2 - low risk
Rick Ferri's Core 4 fund Portfolio (80/20)424.04%24.04%9.64%8.20%-30.32%4 - high risk
Rick Ferri's Core 4 fund Portfolio (40/60))416.44%16.44%6.58%7.27%-12.63%2 - low risk
Rick Ferri's Core 4 fund Portfolio (20/80)412.64%12.64%4.98%6.62%-3.79%1 - very low risk
Rick Ferri Total Economy Core-4 Portfolio Low-Risk412.38%12.38%4.86%6.54%-3.84%1 - very low risk
Rick Ferri Total Economy Core-4 Portfolio Conservative415.92%15.92%6.34%7.09%-12.74%2 - low risk
Rick Ferri Total Economy Core-4 Portfolio Moderate419.46%19.46%7.76%7.54%-21.64%3 - medium risk
Rick Ferri Total Economy Core-4 Portfolio Agressive423.00%23.00%9.12%7.86%-30.53%4 - high risk
Rick Ferri Global Markets Core-4 Low-Risk412.53%12.53%5.09%6.58%-3.52%1 - very low risk
Rick Ferri Global Markets Core-4 Conservative416.46%16.46%6.68%7.20%-12.22%1 - very low risk
Rick Ferri Global Markets Core-4 Moderate420.39%20.39%8.20%7.69%-20.92%3 - medium risk
Rick Ferri Global Markets Core-4 Aggressive424.32%24.32%9.67%8.06%-29.62%4 - high risk
Rick Ferri Inflation Fighter Core-4 Portfolio Low-Risk414.29%14.29%6.04%6.78%-12.21%1 - very low risk
Rick Ferri Inflation Fighter Core-4 Portfolio Conservative417.47%17.47%7.06%7.05%-19.51%2 - low risk
Rick Ferri Inflation Fighter Core-4 Portfolio Moderate420.65%20.65%8.02%7.20%-26.80%4 - high risk
Rick Ferri Inflation Fighter Core-4 Portfolio Aggressive423.83%23.83%8.93%7.24%-34.10%5 - very high risk
Rick Ferri Income Seeker Core-4 Portfolio Low-Risk417.57%17.57%7.45%7.39%-13.38%2 - low risk
Rick Ferri Income Seeker Core-4 Portfolio Conservative417.39%17.39%8.19%7.74%-19.01%2 - low risk
Rick Ferri Income Seeker Core-4 Portfolio Moderate417.11%17.11%8.90%8.01%-24.65%3 - medium risk
Rick Ferri Income Seeker Core-4 Portfolio Aggressive416.66%16.66%9.57%8.22%-30.29%4 - high risk
Rick Ferri Socially Conscious ESG Core-4 Portfolio Low-Risk415.08%15.08%5.93%7.10%-5.13%1 - very low risk
Rick Ferri Socially Conscious ESG Core-4 Portfolio Conservative418.37%18.37%7.31%7.59%-13.43%2 - low risk
Rick Ferri Socially Conscious ESG Core-4 Portfolio Moderate421.66%21.66%8.62%7.96%-21.73%3 - medium risk
Rick Ferri Socially Conscious ESG Core-4 Portfolio Aggressive423.97%23.97%8.84%7.29%-32.48%4 - high risk

Building the portfolios

Below you can see which mutual funds or ETFs you can use to build the many Rick Ferri Core 4 portfolios and his other portfolios from his fantastic books. They are the best-in-class funds and ETFs for this purpose. They are low-cost index funds that best capture the asset class. Read here how we selected the best funds.

Asset allocation for Rick Ferri’s portfolios

Rick Ferri Early Saver Moderate Basic Portfolio                

  • 40.00%  US Total Stock Market   (VTI)
  • 10.00%  REITs     (VNQ)
  • 20.00%  International All-World ex-US     (VEU)
  • 30.00%  Total US Bond Market    (BND)

Rick Ferri Early Saver Moderate Multi-Asset Portfolio                   

  • 25.00%  US Total Stock Market   (VTI)
  • 10.00%  US Small Cap Value         (VIOV)
  • 5.00%    US Micro-Cap     (IWC)
  • 10.00%  REITs     (VNQ)
  • 5.00%    Emerging Markets           (VWO)
  • 5.00%    Pacific Stocks     (VPL)
  • 5.00%    European Stocks               (VGK)
  • 20.00%  Total US Bond Market    (BND)
  • 5.00%    High Yield Corporate Bonds         (HYG / JNK)
  • 5.00%    TIPS       (VTIP)
  • 5.00%    International Small Cap Value             (DLS)

Rick Ferri Mature Retired Saver Moderate Basic Portfolio                           

  • 25.00%  US Total Stock Market   (VTI)
  • 5.00%    REITs     (VNQ)
  • 10.00%  International All-World ex-US     (VEU)
  • 18.00%  Short Term Treasuries       (VGSH)
  • 40.00%  Total US Bond Market    (BND)
  • 2.00%    Cash (money market fund)          (BIL)

Rick Ferri Mature Retired Saver Moderate Multi-Asset Portfolio                              

  • 20.00%  US Total Stock Market   (VTI)
  • 5.00%    US Small Cap Value         (VIOV)
  • 5.00%    REITs     (VNQ)
  • 2.00%    Emerging Markets           (VWO)
  • 4.00%    Pacific Stocks     (VPL)
  • 4.00%    European Stocks               (VGK)
  • 18.00%  Short Term Treasuries       (VGSH)
  • 30.00%  Total US Bond Market    (BND)
  • 2.00%    Cash (money market fund)          (BIL)
  • 10.00%  TIPS       (VTIP)

Rick Ferri Midlife Moderate Basic Portfolio                        

  • 35.00%  US Total Stock Market   (VTI)
  • 8.00%    REITs     (VNQ)
  • 17.00%  International All-World ex-US     (VEU)
  • 40.00%  Total US Bond Market    (BND)

Rick Ferri Midlifer Moderate Multi-Asset Portfolio                         

  • 20.00%  US Total Stock Market   (VTI)
  • 10.00%  US Small Cap Value         (VIOV)
  • 5.00%    US Micro-Cap     (IWC)
  • 8.00%    REITs     (VNQ)
  • 4.00%    Emerging Markets           (VWO)
  • 4.00%    Pacific Stocks     (VPL)
  • 4.00%    European Stocks               (VGK)
  • 20.00%  Total US Bond Market    (BND)
  • 10.00%  High Yield Corporate Bonds         (HYG / JNK)
  • 10.00%  TIPS       (VTIP)
  • 5.00%    International Small Cap Value             (DLS)

Rick Ferri Transitional Moderate Basic Portfolio               

  • 30.00%  US Total Stock Market   (VTI)
  • 5.00%    REITs     (VNQ)
  • 15.00%  International All-World ex-US     (VEU)
  • 48.00%  Total US Bond Market    (BND)
  • 2.00%    Cash (money market fund)          (BIL)

Rick Ferri Transitional Moderate Multi-Asset Portfolio                 

  • 18.00%  US Total Stock Market   (VTI)
  • 8.00%    US Small Cap Value         (VIOV)
  • 4.00%    US Micro-Cap     (IWC)
  • 7.00%    REITs     (VNQ)
  • 3.00%    Emerging Markets           (VWO)
  • 3.00%    Pacific Stocks     (VPL)
  • 3.00%    European Stocks               (VGK)
  • 24.00%  Total US Bond Market    (BND)
  • 2.00%    Cash (money market fund)          (BIL)
  • 12.00%  High Yield Corporate Bonds         (HYG / JNK)
  • 12.00%  TIPS       (VTIP)
  • 4.00%    International Small Cap Value             (DLS)

Rick Ferri’s Core 4 fund Portfolio (20/80)                              

  • 12.00%  US Total Stock Market   (VTI)
  • 2.00%    REITs     (VNQ)
  • 6.00%    International All-World ex-US     (VEU)
  • 80.00%  Total US Bond Market    (BND)

Rick Ferri’s Core 4 fund Portfolio (40/60)                              

  • 24.00%  US Total Stock Market   (VTI)
  • 4.00%    REITs     (VNQ)
  • 12.00%  International All-World ex-US     (VEU)
  • 60.00%  Total US Bond Market    (BND)

Rick Ferri’s Core 4 fund Portfolio (60/40)                           

  • 36.00%  US Total Stock Market   (VTI)
  • 6.00%    REITs     (VNQ)
  • 18.00%  International All-World ex-US     (VEU)
  • 40.00%  Total US Bond Market    (BND)

Rick Ferri’s Core 4 fund Portfolio (80/20)                              

  • 48.00%  US Total Stock Market   (VTI)
  • 8.00%    REITs     (VNQ)
  • 24.00%  International All-World ex-US     (VEU)
  • 20.00%  Total US Bond Market    (BND)

Please also make sure you visit Rick Ferri’s Core 4 Website at https://core-4.com/

Rick Ferri Total Economy Core-4 Portfolio Low-Risk                        

  • 4.00%    US Small Cap Value         (VIOV)
  • 2.00%    REITs (Real Estate)           (VNQ)
  • 80.00%  Total US Bond Market    (BND)
  • 14.00%  Total World Stock            (VT)

Rick Ferri Total Economy Core-4 Portfolio Conservative               

  • 8.00%    US Small Cap Value         (VIOV)
  • 4.00%    REITs (Real Estate)           (VNQ)
  • 60.00%  Total US Bond Market    (BND)
  • 28.00%  Total World Stock            (VT)

Rick Ferri Total Economy Core-4 Portfolio Moderate                      

  • 12.00%  US Small Cap Value         (VIOV)
  • 6.00%    REITs (Real Estate)           (VNQ)
  • 40.00%  Total US Bond Market    (BND)
  • 42.00%  Total World Stock            (VT)

Rick Ferri Total Economy Core-4 Portfolio Aggressive                    

  • 16.00%  US Small Cap Value         (VIOV)
  • 8.00%    REITs (Real Estate)           (VNQ)
  • 20.00%  Total US Bond Market    (BND)
  • 56.00%  Total World Stock            (VT)

Rick Ferri Global Markets Core-4 Low-Risk                          

  • 14.00%  US Total Stock Market   (VTI)
  • 6.00%    Int. Developed Blend      (VEA)
  • 60.00%  Total US Bond Market    (BND)
  • 20.00%  Non-US Bonds   (BNDX)

Rick Ferri Global Markets Core-4 Conservative                 

  • 28.00%  US Total Stock Market   (VTI)
  • 12.00%  Int. Developed Blend      (VEA)
  • 45.00%  Total US Bond Market    (BND)
  • 15.00%  Non-US Bonds   (BNDX)

Rick Ferri Global Markets Core-4 Moderate                        

  • 42.00%  US Total Stock Market   (VTI)
  • 18.00%  Int. Developed Blend      (VEA)
  • 30.00%  Total US Bond Market    (BND)
  • 10.00%  Non-US Bonds   (BNDX)

Rick Ferri Global Markets Core-4 Aggressive                      

  • 56.00%  US Total Stock Market   (VTI)
  • 24.00%  Int. Developed Blend      (VEA)
  • 15.00%  Total US Bond Market    (BND)
  • 5.00%    Non-US Bonds   (BNDX)

Rick Ferri Inflation Fighter Core-4 Portfolio Low-Risk                     

  • 2.00%    REITs (Real Estate)           (VNQ)
  • 40.00%  Corporate Bonds              (LQD)
  • 40.00%  TIPS       (VTIP)
  • 18.00%  Total World Stock            (VT)

Rick Ferri Inflation Fighter Core-4 Portfolio Conservative                             

  • 4.00%    REITs (Real Estate)           (VNQ)
  • 30.00%  Corporate Bonds              (LQD)
  • 30.00%  TIPS       (VTIP)
  • 36.00%  Total World Stock            (VT)

Rick Ferri Inflation Fighter Core-4 Portfolio Moderate                   

  • 6.00%    REITs (Real Estate)           (VNQ)
  • 20.00%  Corporate Bonds              (LQD)
  • 20.00%  TIPS       (VTIP)
  • 54.00%  Total World Stock            (VT)

Rick Ferri Inflation Fighter Core-4 Portfolio Aggressive                 

  • 8.00%    REITs (Real Estate)           (VNQ)
  • 10.00%  Corporate Bonds              (LQD)
  • 10.00%  TIPS       (VTIP)
  • 72.00%  Total World Stock            (VT)

Rick Ferri Income Seeker Core-4 Portfolio Low-Risk                        

  • 20.00%  US Preferred Stocks (PFF)
  • 6.00%  High Dividend Yield International
  • 60.00%  Corporate Bonds              (LQD)
  • 14.00%  High Dividend Yield         (VYM)

Rick Ferri Income Seeker Core-4 Portfolio Conservative               

  • 15.00%    US Preferred Stocks (PFF)
  • 12.00%  High Dividend Yield International
  • 45.00%  Corporate Bonds              (LQD)
  • 28.00%  High Dividend Yield         (VYM)

Rick Ferri Income Seeker Core-4 Portfolio Moderate                      

  • 10.00%  US Preferred Stocks (PFF)
  • 18.00%  High Dividend Yield International
  • 30.00%  Corporate Bonds              (LQD)
  • 42.00%  High Dividend Yield         (VYM)

Rick Ferri Income Seeker Core-4 Portfolio Aggressive                    

  • 5.00%    US Preferred Stocks (PFF)
  • 24.00%  High Dividend Yield International
  • 15.00%  Corporate Bonds              (LQD)
  • 56.00%  High Dividend Yield         (VYM)

Rick Ferri Socially Conscious “ESG” Core-4 Portfolio Low-Risk                    

  • 14.00%  US Total Stock Market   (VTI)
  • 6.00%    Int. Developed Blend      (VEA)
  • 40.00%  Intermediate-Term Treasury       (VGIT)
  • 40.00%  Corporate Bonds              (LQD)

Rick Ferri Socially Conscious “ESG” Core-4 Portfolio Conservative                            

  • 28.00%  US Total Stock Market   (VTI)
  • 12.00%  Int. Developed Blend      (VEA)
  • 30.00%  Intermediate-Term Treasury       (VGIT)
  • 30.00%  Corporate Bonds              (LQD)

Rick Ferri Socially Conscious “ESG” Core-4 Portfolio Moderate                  

  • 42.00%  US Total Stock Market   (VTI)
  • 18.00%  Int. Developed Blend      (VEA)
  • 20.00%  Intermediate-Term Treasury       (VGIT)
  • 20.00%  Corporate Bonds              (LQD)

Rick Ferri Socially Conscious “ESG” Core-4 Portfolio Aggressive                

  • 8.00%    REITs (Real Estate)           (VNQ)
  • 10.00%  Intermediate-Term Treasury       (VGIT)
  • 10.00%  Corporate Bonds              (LQD)
  • 72.00%  Total World Stock            (VT)

Variations on Rick Ferri Core Four Portfolio

Rick Ferri has launched the website https://core-4.com/ to draw attention to his approach and to educate and proliferate the use of his core four strategies.  Also, he has trademarked the name core-4.

In addition to this he has expanded his core four portfolios to include portfolios that cover different investment objectives:

Classic Core-4Capital appreciation with income using stocks, bonds, and real estate

Total Economy Core-4Includes quasi-private equity exposure using small value stocks

Global Markets Core-4Provides exposure to all global stock and bond markets

Inflation Fighter Core-4Includes funds that provide a hedge against inflation

Income Seeker Core-4: Incorporates funds that have higher than average income

Socially Conscious Core-4Excludes certain companies and industries using ESG* standards

In the coming weeks (they are now live on the portfolio page), we will benchmark these portfolios here on portfolioeinstein.com. They look very interesting and easy to implement and maintain.

Resources

Go here for a rebalance excel worksheet.

Rick Ferri hosts the Bogleheads On Investing Podcast

 

Fantastic book on all the moving parts of a portfolio.

Rick Ferri - All About Asset Allocation

 

Rick Ferri’s BEST book, in my opinion.

Richard Ferri - The Power of Passive Investing

 

Great introduction and even advanced knowledge about what index funds are and how they are expressed through mutuals funds and ETFs.

Richard Ferri - All About Index Funds: The Easy Way to Get Started
Richard Ferri – All About Index Funds: The Easy Way to Get Started

Summary and your next steps

Rick Ferri’s Core Four portfolio is another variant on the 60/40 portfolio. It adds more international and a slice of real estate. The portfolio is backed by one of the guys in investing, and offers respectable returns with fantastic diversification.

Unsure that this is your next portfolio? Sign up for our newsletter and be educated on portfolios, stocks and how to make enough money to go to Europe next year.

Why do you think a Rick Ferri portfolio is right for you?

Scroll to Top

Send this to a friend