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Very High-Risk Portfolios

This page displays the very 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 drawdown. The drawdown of a portfolio is the amount of money the portfolio will lose in a  given year. So, for example, a portfolio with a drawdown 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 drawdown of -10%. So a 100% stock portfolio has potentially a drawdown of -50%. A 60% stock portfolio has a potential drawdown of -30%.

There are other forms of risk however but the drawdown 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 drawdowns. The last 20% are the ones with the highest drawdowns.

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

Very high-risk portfolios

Portfolio nameAsset AllocationAsset class count1 year return (2019)Year to date10 year returnCAGR since 1989STDEVSharpeDrawdownYield
S&P 500 (Benchmark)131.46%3.69%13.52%10.54%17.54%0.52-37.63%1.79%
Merrimans Ultimate Portfolio1023.80%-0.36%9.20%9.13%17.74%0.43-41.07%2.80%
Index Fund Advisors, Portfolio 1001224.13%-0.65%10.75%10.53%17.77%0.5-39.62%2.40%
Allan Roth Second Grader High Risk Portfolio325.81%2.09%10.07%8.67%15.63%0.44-34.91%2.18%
Allan Roth Second Grader Five-Fund High Risk Portfolio526.11%2.20%9.87%8.83%14.87%0.46-34.20%2.19%
Allan Roth Second Grader High Risk with CDs Portfolio325.15%1.96%9.75%8.36%15.59%0.42-35.21%2.11%
Scott Adams Dilbert's Portfolio225.56%0.69%8.63%10.92%22.46%0.46-44.87%2.46%
Robo Advisor Betterment 100625.66%0.74%9.73%9.45%17.68%0.45-40.07%2.42%
Robo Advisor Wealthfront 100723.46%0.65%8.12%9.74%17.84%0.46-38.97%2.88%
Robo Advisor Wealthfront 80723.85%1.12%9.16%9.45%15.30%0.49-35.39%2.82%
Index Fund Advisors, Portfolio 901622.15%-0.50%9.73%9.94%15.80%0.51-34.47%2.35%
Total US Stock Market130.80%3.42%13.42%10.51%17.62%0.51-37.00%1.77%
Paul Merriman's Best-in-Class ETFs Portfolio (Aggressive)1223.53%-0.48%9.40%9.28%16.92%0.45-38.36%2.88%
Paul Merriman's Target Date Portfolio (25 year old)422.17%-2.45%10.48%10.83%17.85%0.51-36.46%2.03%
Paul Merriman's Target Date Portfolio (35 year old)1122.49%-2.17%10.50%10.70%17.66%0.51-36.35%2.09%
Paul Merriman's Target Date Portfolio (45 year old)1421.83%-1.50%10.04%10.24%16.12%0.52-33.39%2.14%
iShares LifePath Index 2060 Fund (25 year old)527.58%2.17%10.63%9.02%15.93%0.45-38.83%2.44%
iShares LifePath Index 2050 Fund (35 year old)627.60%2.19%10.65%9.03%15.91%0.46-38.75%2.44%
iShares LifePath Index 2040 Fund (45 year old)725.80%2.11%10.05%8.87%14.48%0.47-34.50%2.35%
BlackRock Model Portfolio 100% Stocks226.81%1.80%9.91%8.26%17.44%0.39-40.05%2.31%
BlackRock Model Portfolio 91% Stocks325.01%1.70%9.25%8.11%15.92%0.4-36.11%2.32%
JL Collins, Simple Path To Wealth, Wealth Building Portfolio130.80%3.42%13.42%10.51%17.62%0.51-37.00%1.77%
Fidelity Freedom Index 2040 (45 year old)525.93%2.06%10.10%8.77%15.47%0.45-34.81%2.14%
Fidelity Freedom Index 2050 (35 year old)525.93%2.06%10.10%8.77%15.47%0.45-34.81%2.14%
Fidelity Freedom Index 2060 (25 year old and younger)525.93%2.06%10.10%8.77%15.47%0.45-34.81%2.14%
Morningstar Aggressive Retirement Saver Portfolio525.74%1.40%10.11%8.98%16.27%0.44-36.46%2.20%
Vanguard Target Retirement 2050 (35 year old)425.21%1.87%9.59%8.34%15.68%0.42-35.27%2.21%
Vanguard Target Retirement 2060 (25 year old)425.22%1.86%9.58%8.33%15.69%0.41-35.33%2.21%
Merrill Lynch Edge Select Portfolio, Aggressive1225.05%2.03%9.56%9.32%15.28%0.49-33.52%2.11%
David Booth (DFA) Equity Portfolio1124.98%0.21%10.79%10.24%16.91%0.51-39.45%2.58%
T. Rowe Price ActivePlus Portfolio, Model 90326.09%2.20%10.31%8.83%15.62%0.45-34.69%2.15%
T. Rowe Price ActivePlus Portfolio, Model 100228.02%2.29%10.98%8.97%17.30%0.43-39.12%2.15%
Schwab Target Date Fund 2030 (35 year old)825.75%1.80%9.88%9.14%15.74%0.47-36.08%2.26%
Schwab Target Date Fund 2020 (25 year old)726.63%1.81%10.16%9.27%16.53%0.46-38.18%2.27%
Schwab Managed Portfolio, Aggressive Growth724.80%0.79%8.80%8.56%16.09%0.42-38.07%2.27%
Gibson Four Asset Classes423.22%-1.39%6.36%7.52%14.41%0.39-40.41%2.66%
TrevH from Boglheads Portfolio422.96%-0.52%9.00%8.40%17.41%0.39-40.81%2.77%
Morningstar Lifetime Allocation Index Aggressive, 20601625.57%0.60%9.23%9.29%16.96%0.45-39.62%2.32%
Morningstar Lifetime Allocation Index Aggressive, 20501625.86%0.73%9.48%9.34%16.82%0.46-39.37%2.28%
Morningstar Lifetime Allocation Index Aggressive, 20401825.97%0.86%9.66%9.39%16.54%0.47-38.72%2.25%
Morningstar Lifetime Allocation Index Moderate, 20601624.97%0.64%9.10%9.26%16.27%0.46-37.83%2.30%
Morningstar Lifetime Allocation Index Moderate, 20501625.14%0.77%9.29%9.30%16.06%0.47-37.36%2.28%
Morningstar Lifetime Allocation Index Moderate, 20401824.40%0.89%9.19%9.24%15.07%0.49-34.80%2.23%
Burton Malkiel Portfolio, Mid-Twenties824.15%1.49%9.06%9.53%15.43%0.5-34.90%2.50%
Dimensional 2050 Target Date Retirement Income Fund726.49%1.94%10.02%9.05%16.76%0.44-37.66%2.23%
Dimensional 2060 Target Date Retirement Income Fund726.49%1.94%10.02%9.05%16.76%0.44-37.66%2.23%
Paul Merriman 2-Fund-Value-Portfolio224.29%-0.84%12.22%10.66%16.70%0.53-36.25%2.13%
Paul Merriman 4-Fund-Portfolio426.85%0.53%12.72%10.71%16.85%0.53-35.26%1.85%
Paul Merriman 5-Fund-Value-Portfolio521.75%-1.79%9.99%9.93%17.55%0.47-39.50%2.98%
Dan Solin SuperSmart Portfolio, High Risk725.13%-0.04%10.37%10.31%17.04%0.51-39.51%2.57%
Dan Solin The Smartest ETF Portfolio, High Risk126.79%1.53%9.04%7.52%17.87%0.34-42.34%2.27%
Dan Solin The Smartest Index Portfolio, High Risk228.02%2.29%10.98%8.97%17.30%0.43-39.12%2.15%
TIAA-CREF Lifecycle 2050426.50%2.15%10.51%9.35%16.20%0.47-35.52%2.14%
TIAA-CREF Lifecycle 2060426.95%2.17%10.66%9.40%16.61%0.47-36.60%2.14%
William Bernstein Taxable Ted 100% Stocks427.65%1.76%11.33%9.39%16.34%0.47-37.86%2.22%
William Bernstein Sheltered Sam 100% Stocks1025.71%0.70%10.65%9.89%15.81%0.51-36.95%2.44%
William Bernstein Sheltered Sam 90/101223.82%0.68%9.94%9.56%14.41%0.52-33.64%2.32%
Goldman Sachs Target Date 2055 Portfolio1025.04%1.60%9.60%9.03%15.36%0.47-35.16%2.40%
Robo Advisor Betterment 901123.97%0.76%9.19%9.29%16.17%0.47-36.12%2.36%
Rick Ferri Inflation Fighter Core-4 Portfolio Aggressive423.82%1.53%8.55%7.93%14.07%0.41-34.42%2.18%
Meb Faber IVY 20 portfolio1620.38%-1.29%5.78%8.30%14.34%0.44-35.66%2.26%
FPL Capital Management Portfolio 90922.76%-0.26%10.54%10.31%15.09%0.55-34.94%2.80%
FPL Capital Management Portfolio 100824.32%-0.44%11.24%10.63%16.71%0.53-39.39%2.88%
Fundamentum Enhanced Index Focus Growth623.57%1.47%8.38%7.64%14.79%0.38-34.75%2.16%
Assetbuilder.com Portfolio 141122.06%-0.60%9.75%10.75%17.88%0.51-37.91%2.33%
Robo Advisor Wealthsimple Portfolio Growth925.25%1.51%9.33%9.25%16.22%0.47-36.27%2.42%
Robo Advisor WiseBanyan 90% stocks925.51%1.79%9.78%8.83%15.97%0.44-35.78%2.25%

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 very high-risk portfolio is right for you?

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