|Lazy portfolios are broadly diversified portfolios and perform well in most market conditions. Lazy portfolios contain low-cost funds which are easy to rebalance. Investors can maintain the same asset allocation for an extended period of time and this is the reason why they are called lazy.
Two Fund Portfolio
Risk Ferri created the Risk Ferri portfolio which is a portfolio consisting of two funds which allows the investor to invest in US Stock market, Internation stock markets and bonds.
Three Fund Portfolio
Three Fund Portfolio created by many authors and investors typically consist of 1. bonds (total bond market exposure or TIPS) 2. US Stock Market and 3. International Stock Market.
The historical Performance of Three Fund Portfolio for the period 1972 to 2014 is the following:
Bill Schultheis coffeehouse portfolio
Coffeehouse portfolio allocation has exposure in US Bonds Market, US Stocks Market and International Stocks.
The historical Performance of the CoffeeHouse Portfolio for the period 1972 to 2014 is the following
Scott Burns Couch Potato Portfolio, Andrew Tobias Three Fund Portfolio
Rick Ferri Three Fund Portfolio
Risk Ferri portfolio allocation has exposure in US Bonds Market, US Stocks Market and International Stocks.
Four Fund Portfolio
Risk Ferri has proposed a four fund portfolio consisting of four low cost total market funds. The allocation between the four total market funds is modified according to the desired allocation between stocks and bonds the investor wishes to hold.
The Four fund portfolio is a low cost foundation for a portfolio. A value stock fund can be added either to get exposure to value stocks in US or International stocks. The bond allocation can be split between Treasury Inflation Protected Securities and nominal bonds.
Other Lazy Portfolios
Other more complex portfolios structure by various investors and authors can be found below. These portfolios contain big exposure in bonds typically between 30-40% as well as exposure to REITs, US and/or International stocks, adding large and small value.
- Bill Schultheis
- William bernstein portfolio
- Informed Investor Portfolio
- David Swensen Portfolio