Two Fund Portfolio

The Two Fund Portfolio consists of a two funds, depending on an investor’s asset class selection. For US investors seeking only domestic US investments, the fund selection is a US total stock market index and a US bond market index. For investors seeking global allocations, the fund selection is a global stock market index fund and a US bond market index fund.

Lazy Portfolios in 2020

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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

Lazy Portfolios in 2019

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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

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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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Global two-fund portfolio – 2018 update

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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%

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Lazy Portfolios in 2017

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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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Global two-fund portfolio – 2017 update

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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 2017 the two-fund portfolio produced the following returns:

Year Total world Total bond 80/20 60/40 40/60 20/80
2017 24.06% 3.46% 19.94% 15.82% 11.70% 7.58%

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Lazy Portfolios in 2016

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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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Lazy Portfolios in 2015

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assetallocationpiechart

The following table lists 2015 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 (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. Lower cost admiral share class funds would add approximately +0.10% to returns. Detailed descriptions of each portfolio’s annual returns are linked.

 2015 total return

Portfolio 60/40 70/30
Two-fund -1.09% -1.32%
Three-fund -0.79% -0.97%
Ferri Core four -0.43% -0.55%
Vanguard Core four -0.74% -0.95%
Coffeehouse -0.93% –
Coward’s -0.82% –
Ideal – -1.55%
Swensen – -0.34%

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