Lazy Portfolios in 2021

The following table lists 2021 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 … Read more

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

US two fund portfolio – 2020 update

The US two fund portfolio is a portfolio design consisting of two “total” market index funds covering the US stock market and the US taxable investment grade bond market.

The 2020 returns for the portfolio’s constituent Vanguard funds:

  • Vanguard Total Stock Market Index Fund: 20.99%
  • Vanguard Total Bond Market Index Fund: 7.72%

Below are four portfolios with allocations devoting various stock/ bond allocations (click images to enlarge).

The table below provides 2020 returns for these portfolios.

Year80/2060/4040/6020/80
202018.34%15.68%13.03%10.37%

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

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%

Read more

Global two-fund portfolio – 2018 update

The 2008 inception of the Vanguard Total World Stock Index fund makes it easy for investors to invest in a simple two-fund portfolio, using a combination of the total world stock index fund with a total US bond index fund. Sample two-fund allocations are indicated below. (click image to enlarge)

In 2018 the two-fund portfolio produced the following returns:

Year Total world Total bond 80/20 60/40 40/60 20/80
2018 -9.73% -0.03% -7.79% -5.85% -3.91% -1.97%

Read more