The term “lazy portfolio” refers to a portfolio designed to perform well in most market conditions, that can be held for an extended period without changing the asset allocation leading up to retirement. Popular examples are the traditional 60/40 Portfolio and the Bogleheads 3 Fund Portfolio.
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Lazy portfolios are usually simple, diversified collections of low-cost index funds; no active management, market timing, or stock picking here. Jack Bogle, founder of Vanguard and considered the father of index investing, advocated for the “majesty of simplicity.” In this case, “lazy” isn’t a bad thing.
Lazy portfolios arguably take index investing even further, taking the guesswork and complexity out of investing, allowing the investor to truly be “lazy” in their investing approach by eliminating the need to choose funds and the allocations thereof; the investor need only occasionally rebalance their lazy portfolio. This saves the investor time and alleviates potential stress and cognitive dissonance related to investing strategies. As such, they’re perfect for the long-term buy-and-hold investor who wants to be hands-off.
Below is an ever-evolving list of popular lazy portfolios, with links to my usually-brief analysis/review of each and the corresponding pie of ETF’s to use with M1 Finance. Whenever possible, I’m usually using low-cost Vanguard funds, or whichever provider has the lowest fees with sufficient AUM. Similarly, when a particular risk factor is targeted, I’ve selected the fund with a favorable balance of factor loading, fees, and volume. I try to review these regularly as new funds emerge that may be a superior choice.
In most cases of US-only equities, I’ve also created a global version to capture international stocks for those wanting more diversification.
Comment or email to request a lazy portfolio that I may have missed or haven’t seen yet.
List of Lazy Portfolios
- Ray Dalio All Weather Portfolio (review here)
- Golden Butterfly Portfolio (review here)
- Harry Browne’s Permanent Portfolio (review here)
- David Swensen Portfolio (review here)
- Bogleheads 3 Fund Portfolio (80/20; review here)
- Bogleheads 4 Fund Portfolio (80/20; review here)
- 60/40 Portfolio (review here)
- Meb Faber Ivy Portfolio (review here)
- Bernstein No Brainer Portfolio (review here)
- Ben Felix Factor Model Portfolio (review here)
- Frank Armstrong Ideal Index Portfolio (review here)
- Bob Clyatt Sandwich Portfolio (review here)
- Pinwheel Portfolio (review here)
- Bill Schultheis Coffeehouse Portfolio (review here)
- Warren Buffett Portfolio (review here)
- John’s High Dividend Pie
- Paul Farrell Second Grader’s Starter Portfolio (review here)
- Larry Swedroe Portfolio (review here)
- Tim Maurer Simple Money Portfolio (review here)
- Rick Ferri Core 4 Portfolio (review here)
- JL Collins Simple Path to Wealth Portfolio
- Craig Israelsen 7Twelve Portfolio (review here)
- Paul Merriman 4 Fund Portfolio
- Paul Merriman Ultimate Buy and Hold Portfolio (review here)
- Roger Gibson 5 Asset Portfolio (review here)
- Roger Gibson Talmud Portfolio (review here)
- Gyroscopic Investing Desert Portfolio (review here)
- Scott Burns Couch Potato Portfolio (review here)
- Scott Burns Margarita Portfolio
- Hedgefundie’s Excellent Adventure 55/45 (not “lazy,” I know; review here)
Disclaimer: Â While I love diving into investing-related data and playing around with backtests, I am in no way a certified expert. I have no formal financial education. I am not a financial advisor, portfolio manager, or accountant. This is not financial advice, investing advice, or tax advice. The information on this website is for informational and recreational purposes only. Investment products discussed (ETFs, mutual funds, etc.) are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. Do your own due diligence. Past performance does not guarantee future returns. Read my lengthier disclaimer here.
Hello John. I’ve been just found your site and love it.
Is there a way to compare all these with S&P500? Or make a comparison between them? For example, to make it easier, Bogleheads 2 vs 3 fund? Maybe one of them vs All Weather? All Weather vs Buffet’s? Or most important, “my fund” vs any of these?
Thanks Daniel! Glad you’re liking it. I usually compare each one to the S&P 500 in each individual post. No way to do them all at once that I can think of. You can do 3 at a time plus the S&P 500 in Portfolio Visualizer. Other tools may allow you to compare more simultaneously; I’m not sure.
But yes you can take any portfolios/funds and put them in Portfolio Visualizer to view the historical data.
Hello and thank you so much for your work ! I need to ask, what would be your recomendation for a young man (25 years old) who want to invest his money on a lazy etf portfolio for about 40 years? Thank you so much
Hey Juan, I can’t make personalized recommendations but the most popular lazy portfolio is the Bogleheads 3 Fund. Your choice will depend on your personal risk tolerance. Others like the All Weather Portfolio and the Golden Butterfly Portfolio use more diversification to lower volatility and risk. The Paul Merriman Ultimate Buy and Hold and the Ben Felix Factor Portfolio are some of my favorites that pretty closely resemble my own portfolio.
Hey, thank you for your very good job, I’d like to know how do you simulate a leveraged etf with portfoliovisualizer, have you an article wich talks about that ? Send me it please.
Hi, for some of them I created my own simulation data. For a quick and dirty way to do it, you can set a position at the leveraged percentage and use a negative cash position with CASHX.
What is the process to generate one’s own simulation data? Is there any resources you could link to for learning that?
Thanks in advance!
Basically, locate a mutual fund equivalent and download the historical returns from Yahoo Finance and then upload that to Portfolio Visualizer.
Hi John! I am really enjoying your blog so far. I started getting into M1 investing and was wondering what advice you would have for someone in their mid 30’s? I like the idea of a lazy pie that I do not need to maintain or switch up but I can afford to be a little risky. If you have a specific blog post you can direct me to I would really appreciate it. Thanks!
Hey Barb. Glad you’re enjoying it!
That’s a simple question with a not so simple answer. I don’t really have a post where I’ve compared a lot of these at once. I did write a comment here that may give you some insight where someone asked which lazy portfolios were my favorites.
Since you mentioned being able to afford some risk, I’d probably go with an 80/20 asset allocation of stocks to bonds. You might like the long-term treasury version of the Bogleheads 3-Fund Portfolio or my modified 80/20 version of the Paul Merriman Ultimate Buy & Hold Portfolio. Both of those versions appear at the very end of the blog posts.
Hope this helps!
Which portfolio(s) would you recommend at various points throughout an investor’s life? The common thought is being heavy stocks when young, and rebalancing toward bonds as one ages. What about taking the same approach to portfolio? Maybe start Butterfly and slowly drift toward All Weather when one gets into their 50’s or 60’s?
Hey Rob,
Thanks for your comment. The entire purpose of “lazy portfolios” is to not have to adjust them over your investing horizon. The Golden Butterfly and All Weather are very similar. If you want to gradually move more into bonds as time goes by (I support that idea) then I’d go with the Bogleheads 3 Fund or Bogleheads 4 Fund and adjust the allocations accordingly.
Is there one place where all these portfolios are compared? I’m retired and have a low risk tolerance but also want to choose the best one for safety and returns. Do you have any favorites?
Hey Tom,
No I haven’t compared them all anywhere here. You can see their historical returns at lazyportfolioetf.com.
It’s hard to pick a favorite as they’re appropriate for different time horizons in some cases. In your case I’d probably choose the All Weather Portfolio.