Lazy Portfolios in 2020

The following table lists 2020 total returns for various examples of “lazy portfolios”. Some of the portfolios (Coffeehouse and Coward’s) are designed as 60/40 stock/bond portfolios. Other portfolios (Armstrong Ideal and Swensen) are designed as 70/30 stock/bond portfolios. The two-fund, three-fund, and four-fund portfolios are scaled to similar stock/bond allocations. Prior to 2018, returns are derived from … Read more

David Swensen’s portfolio (from Unconventional Success) – 2020 Update

David Swensen, investment manager of the Yale University Endowment Fund, has addressed how investors should set up and manage their investments in his book, Unconventional Success: A Fundamental Approach to Personal Investment. The Swensen portfolio consists of six core asset class allocations: US equity: 30% Foreign developed equity: 15% Emerging market equity: 5% US REITS: … Read more

Lazy Portfolios in 2019

The following table lists 2019 total returns for various examples of “lazy portfolios”. Some of the portfolios (Coffeehouse and Coward’s) are designed as 60/40 stock/bond portfolios. Other portfolios (Armstrong Ideal and Swensen) are designed as 70/30 stock/bond portfolios. The two-fund, three-fund, and four-fund portfolios are scaled to similar stock/bond allocations. Prior to 2018, returns are derived from … Read more

David Swensen’s portfolio (from Unconventional Success) – 2019 Update

David Swensen, investment manager of the Yale University Endowment Fund, has addressed how investors should set up and manage their investments in his book, Unconventional Success: A Fundamental Approach to Personal Investment. The Swensen portfolio consists of six core asset class allocations: US equity: 30% Foreign developed equity: 15% Emerging market equity: 5% US REITS: … Read more

Lazy Portfolios in 2018

assetallocationpiechartThe following table lists 2018 total returns for various examples of “lazy portfolios”.

Some of the portfolios (Coffeehouse and Coward’s) are designed as 60/40 stock/bond portfolios. Other portfolios (Armstrong Ideal and Swensen) are designed as 70/30 stock/bond portfolios. The two-fund, three-fund, and four-fund portfolios are scaled to similar stock/bond allocations. The returns are derived from investments in investor share class Vanguard index funds.

 2018 total return

Portfolio 60/40 70/30
Two-fund -5.85% -6.82%
Three-fund -4.78% -5.57%
Ferri Core four -4.98% -5.63%
Vanguard Core four -4.98% -5.95%
Coffeehouse -5.19%
Coward’s -5.01%
Armstrong Ideal -6.81%
Swensen -5.67%

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David Swensen’s portfolio (from Unconventional Success) – 2018 Update

DavidSwensen
David Swensen, investment manager of the Yale University Endowment Fund, has addressed how investors should set up and manage their investments in his book, Unconventional Success: A Fundamental Approach to Personal Investment.
The Swensen portfolio consists of six core asset class allocations:

  • US equity: 30%
  • Foreign developed equity: 15%
  • Emerging market equity: 5%
  • US REITS: 20%
  • US Treasury bonds: 15%
  • US TIPS: 15%

Although the recommended portfolio splits its allocation with 70% equities/ 30% fixed income, the portfolio can be adjusted to reflect alternative equity/bond allocations.
The charts below (click images to enlarge) show portfolio allocations. The accompanying table provides 2018 returns for these portfolios. Note that a different weighting of international stocks would result in differing returns.

Year 70/30 60/40 40/60 20/80
2018 -5.67% -4.94% -3.55% -1.82%

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Lazy Portfolios in 2017

assetallocationpiechartThe following table lists 2017 total returns for various examples of “lazy portfolios”.

Some of the portfolios (Coffeehouse and Coward’s) are designed as  60/40 stock/bond portfolios. Other portfolios (Armstrong Ideal and Swensen) are designed as 70/30 stock/bond portfolios.  The two-fund, three-fund, and four-fund portfolios are scaled to similar stock/bond allocations. The returns are derived from investments in investor share class Vanguard index funds.

 2017 total return

Portfolio 60/40 70/30
Two-fund 15.82% 17.88%
Three-fund 15.15% 17.10%
Ferri Core four 14.18% 15.97%
Vanguard Core four 15.41% 17.46%
Coffeehouse 14.42%
Coward’s 11.76%
Armstrong Ideal 14.58%
Swensen 13.44%

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David Swensen’s portfolio (from Unconventional Success) – 2017 Update

DavidSwensen
David Swensen, investment manager of the Yale University Endowment Fund, has addressed how investors should set up and manage their investments in his book, Unconventional Success: A Fundamental Approach to Personal Investment.

The Swensen portfolio consists of six core asset class allocations:

  • US equity: 30%
  • Foreign developed equity: 15%
  • Emerging market equity: 5%
  • US REITS: 20%
  • US Treasury bonds: 15%
  • US TIPS: 15%

Although the recommended portfolio splits its allocation with 70% equities/ 30% fixed income, the portfolio can be adjusted to reflect alternative equity/bond allocations. The charts below (click images to enlarge) show portfolio allocations. The accompanying table provides 2017 returns for these portfolios. Note that returns for portfolios holding admiral shares would produce a return enhancement of approximately 0.10% and that a different weighting of international stocks would result in differing returns.

Year 70/30 60/40 40/60 20/80
2017 13.44% 12.89% 9.41% 5.80%

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Lazy Portfolios in 2016

assetallocationpiechartThe following table lists 2016 total returns for various examples of “lazy portfolios”.

Some of the portfolios (Coffeehouse and Coward’s) are designed as  60/40 stock/bond portfolios. Other portfolios (Armstrong Ideal and Swensen) are designed as 70/30 stock/bond portfolios.  The two-fund, three-fund, and four-fund portfolios are scaled to similar stock/bond allocations. The returns are derived from investments in investor share class Vanguard index funds.¹ Lower cost admiral share class funds would add approximately +0.10% to returns. Detailed descriptions of each portfolio’s annual returns are linked.

 2016 total return

Portfolio 60/40 70/30
Two-fund 6.20% 6.80%
Three-fund 7.10% 7.87%
Ferri Core four 6.85% 7.57%
Vanguard Core four 6.89% 7.51%
Coffeehouse 9.44%
Coward’s 9.02%
Armstrong Ideal 7.76%
Swensen 7.38%

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David Swensen’s portfolio (from Unconventional Success) 2016 Update

DavidSwensen
David Swensen, investment manager of the Yale University Endowment Fund, has addressed how investors should set up and manage their investments in his book, Unconventional Success: A Fundamental Approach to Personal Investment.
The Swensen portfolio consists of six core asset class allocations:

  • US equity: 30%
  • Foreign developed equity: 15%
  • Emerging market equity: 5%
  • US REITS: 20%
  • US Treasury bonds: 15%
  • US TIPS: 15%

Although the recommended portfolio splits its allocation with 70% equities/ 30% fixed income, the portfolio can be adjusted to reflect alternative equity/bond allocations.
The charts below (click images to enlarge) show portfolio allocations. The accompanying table provides 2016 returns for these portfolios. Note that returns for portfolios holding admiral shares would produce a return enhancement of approximately 0.10% and that a different weighting of international stocks would result in differing returns.

Year 70/30 60/40 40/60 20/80
2016 7.38% 6.72% 5.45% 4.13%

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