Comparison - Lazy Portfolio ETF (2024)

FAQs

What is the best lazy portfolio? ›

A typical asset allocation for a lazy portfolio would be about 60% US stocks, 20% international stocks and 20% bonds. If you want to be a little less lazy, you can get more creative with your fund choices.

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

The 60/40 portfolio, defined here as a mix of 60% U.S. equities and 40% U.S. Treasury bonds, saw a rollercoaster ride down 17.5% in 2022 and up 17.2% in 2023.

In investing, the 80-20 rule generally holds that 20% of the holdings in a portfolio are responsible for 80% of the portfolio's growth. On the flip side, 20% of a portfolio's holdings could be responsible for 80% of its losses.

As an investor you will find many products and many options to invest in. The 5% rule says as an investor, you should not invest more than 5% of your total portfolio in any one option alone. This simple technique will ensure you have a balanced portfolio.

The 90/10 rule in investing is a comment made by Warren Buffett regarding asset allocation. The rule stipulates investing 90% of one's investment capital toward low-cost stock-based index funds and the remainder 10% to short-term government bonds.

What is the 7% rule? The 7% rule involves withdrawing 7 percent of your retirement savings each year. This strategy carries higher risk, especially during market downturns. It can lead to faster depletion of funds compared to more conservative approaches like the 4% rule.

That makes outperforming the S&P 500 on a consistent basis no small task. The one fund that has beaten the index in nine of the past 10 years is the Technology Select Sector SPDR Fund (NYSEMKT: XLK).

What is the 70 30 ETF strategy? ›

This investment strategy seeks total return through exposure to a diversified portfolio of primarily equity, and to a lesser extent, fixed income asset classes with a target allocation of 70% equities and 30% fixed income. Target allocations can vary +/-5%.

Bill Bengen's model allows you to take out 4% of your assets to live off in your first year of retirement. If you have $1 million, you would be able to take out $40,000. The first nuance that many investors often forget is that the model allows for inflation in each subsequent year's withdrawal.

Investing in an ETF that tracks a financial services index gives you ownership in a basket of financial stocks versus a single financial company. As the old cliché goes, you do not want to put all your eggs into one basket. An ETF can guard against volatility (up to a point) if some stocks within the ETF fall.

Average Return

In the past year, QQQ returned a total of 32.95%, which is significantly higher than VOO's 26.91% return. Over the past 10 years, QQQ has had annualized average returns of 18.95% , compared to 12.90% for VOO. These numbers are adjusted for stock splits and include dividends.

The portfolio P is the most efficient portfolio, as it lies on both the CML and Efficient Frontier, and every investor would prefer to attain this portfolio, P. The P portfolio is known as the Market Portfolio and is generally the most diversified portfolio.

Rick Ferri's Two-Fund Lazy Portfolio

The 60/40 rule of asset allocation is a tried-and-true rule of thumb for approaching your portfolio. And it's ludicrously simple: 60% stocks. 40% bonds.