Comparison - Lazy Portfolio ETF (2024)

FAQs

What are the best 3 ETF portfolios? ›

One option for a solid three-ETF portfolio could be to include the Schwab U.S. Dividend Equity ETF (SCHD), the Vanguard S&P 500 ETF (VOO), and the Invesco QQQ Trust (QQQ). The SCHD ETF focuses on high-quality dividend stocks, which can provide stable income and potential long-term growth.

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.

How the Rule of 72 Works. For example, the Rule of 72 states that $1 invested at an annual fixed interest rate of 10% would take 7.2 years ((72 ÷ 10) = 7.2) to grow to $2. In reality, a 10% investment will take 7.3 years to double (1.10^7.3 = 2).

Building Your Lazy Portfolio

The 3 funds are US stocks (total US stock market), international stocks (total international stock market), and bonds. “It really can be that simple. You can buy an ETF for each of the three funds, set it and forget it.” said Zigmont.

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 10-5-3 rule is a general guideline for investing, suggesting an allocation of 10% of your portfolio in cash, 5% in bonds, and 3% in commodities. However, it is not a reliable predictor of investment returns.

Investing. When it comes to investing, the 80/20 rule asserts that 80% of your investment returns — or losses — come from only 20% of your assets.

One is enough, but you're probably getting too many when you're getting above 5 or 6 because it's just like you covered all the major geographies of the world. And then when it comes to your satellite, you know, you could have 20 thematic ETFs and active ETFs if you wanted to.

Average Return

In the past year, QQQ returned a total of 30.38%, which is higher than VOO's 27.99% return. Over the past 10 years, QQQ has had annualized average returns of 18.30% , compared to 12.63% for VOO. These numbers are adjusted for stock splits and include dividends.

How many S&P 500 ETFs should I buy? ›

SPY, VOO and IVV are among the most popular S&P 500 ETFs. These three S&P 500 ETFs are quite similar, but may sometimes diverge in terms of costs or daily returns. Investors generally only need one S&P 500 ETF.

1. The market portfolio is an efficient portfolio: its allocation provides the only optimal mix of risky assets; 2. For each asset, its expected return follows a simple linear relationship with the expected return of the market portfolio.

Three-fund lazy portfolios

These usually consist of three equal parts of bonds (total bond market or TIPS), total US market and total international market.

The Tyler Golden Butterfly Portfolio is a High Risk portfolio and can be implemented with 5 ETFs. It's exposed for 40% on the Stock Market and for 20% on Commodities. In the last 30 Years, the Tyler Golden Butterfly Portfolio obtained a 7.68% compound annual return, with a 7.75% standard deviation.

Building a lazy portfolio starts with deciding what you want it to look like, i.e. one-fund, two-fund, three-fund, etc. Remember that for lazy portfolios, less is more. So you may want to cap the number of funds you choose at five. Next, consider which funds are best suited to your needs, goals and risk tolerance.