Larry Swedroe Simple Portfolio
Larry Swedroe is a financial advisor and author who has written extensively on investing. One of the portfolio strategies he has recommended is the "simple portfolio," a low-cost, diversified investment portfolio designed to be easy to understand and manage.
The simple portfolio typically consists of a mix of asset classes, including stocks, bonds, and cash. The goal of the portfolio is to provide a combination of growth and income while minimizing risk through diversification. To implement the simple portfolio, an investor might invest in low-cost index funds or exchange-traded funds (ETFs) representing each asset class.
One of the key features of the simple portfolio is that it is designed to be easy to understand and manage, making it a good choice for investors who are new to investing or who do not have a lot of time to devote to managing their investments. It is also a good choice for investors who want to minimize the costs associated with investing, as the simple portfolio typically uses low-cost index funds or ETFs rather than actively managed funds.
Asset Allocation
Performance
Performance Chart
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The earliest data available for this chart is Aug 5, 2005, corresponding to the inception date of EFV
Returns By Period
As of May 15, 2025, the Larry Swedroe Simple Portfolio returned 2.07% Year-To-Date and 5.72% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y* | 10Y* | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | 0.19% | 9.00% | -1.55% | 12.31% | 15.59% | 10.78% |
| Larry Swedroe Simple Portfolio | 2.07% | 5.03% | -0.23% | 5.95% | 9.63% | 5.72% |
| Portfolio components: | ||||||
IJS iShares S&P SmallCap 600 Value ETF | -9.72% | 10.77% | -13.72% | -2.50% | 15.53% | 6.81% |
EEM iShares MSCI Emerging Markets ETF | 10.74% | 9.92% | 9.03% | 10.14% | 7.50% | 2.97% |
EFV iShares MSCI EAFE Value ETF | 17.46% | 7.73% | 17.13% | 15.16% | 15.98% | 4.80% |
VB Vanguard Small-Cap ETF | -3.19% | 11.29% | -7.34% | 4.42% | 14.28% | 8.21% |
VTV Vanguard Value ETF | 0.68% | 3.35% | -3.69% | 7.11% | 15.37% | 9.80% |
TIP iShares TIPS Bond ETF | 2.87% | 0.38% | 2.35% | 4.99% | 1.26% | 2.25% |
Monthly Returns
The table below presents the monthly returns of Larry Swedroe Simple Portfolio, with color gradation from worst to best to easily spot seasonal factors. Returns are adjusted for dividends.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2.65% | 0.17% | -1.34% | -1.25% | 1.89% | 2.07% | |||||||
| 2024 | -1.21% | 1.47% | 2.81% | -3.31% | 3.10% | -0.56% | 4.66% | 0.94% | 1.60% | -2.01% | 3.94% | -4.16% | 7.03% |
| 2023 | 5.79% | -2.18% | -0.35% | 0.19% | -2.69% | 4.07% | 2.89% | -2.64% | -3.18% | -2.98% | 5.82% | 5.90% | 10.32% |
| 2022 | -2.40% | 0.04% | -0.05% | -4.54% | 0.80% | -6.43% | 5.40% | -3.10% | -8.29% | 6.62% | 5.06% | -2.94% | -10.53% |
| 2021 | 1.24% | 3.23% | 2.53% | 2.14% | 2.00% | -0.10% | 0.08% | 0.91% | -1.96% | 2.65% | -2.00% | 2.99% | 14.41% |
| 2020 | -1.53% | -4.79% | -12.00% | 7.72% | 2.84% | 1.82% | 2.78% | 3.07% | -2.19% | -0.14% | 10.08% | 4.15% | 10.40% |
| 2019 | 6.24% | 1.86% | 0.08% | 2.12% | -3.85% | 4.27% | 0.14% | -1.41% | 1.73% | 1.41% | 1.65% | 2.00% | 17.10% |
| 2018 | 1.99% | -3.17% | 0.23% | 0.52% | 1.13% | 0.17% | 1.65% | 0.94% | -0.71% | -5.43% | 1.29% | -5.14% | -6.70% |
| 2017 | 1.09% | 1.32% | 0.31% | 0.71% | -0.09% | 0.77% | 1.32% | -0.16% | 2.37% | 0.89% | 1.61% | 0.92% | 11.60% |
| 2016 | -3.00% | 0.45% | 5.47% | 1.29% | -0.07% | 0.88% | 2.85% | 0.54% | 0.65% | -1.49% | 2.87% | 1.69% | 12.57% |
| 2015 | -0.42% | 2.81% | -0.35% | 0.70% | -0.06% | -1.34% | -0.15% | -4.04% | -2.51% | 4.08% | 0.31% | -2.42% | -3.59% |
| 2014 | -1.49% | 3.00% | 0.46% | 0.34% | 1.54% | 1.88% | -1.88% | 2.12% | -3.65% | 2.23% | 0.49% | -0.42% | 4.49% |
Expense Ratio
Larry Swedroe Simple Portfolio has an expense ratio of 0.20%, which is considered low. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.
Risk-Adjusted Performance
Risk-Adjusted Performance Rank
The current rank of Larry Swedroe Simple Portfolio is 25, indicating average performance compared to other portfolios on our website. Here’s a breakdown of how it compares using common performance measures.
Risk-Adjusted Performance Indicators
This table presents a comparison of risk-adjusted performance metrics for positions. Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio | |
|---|---|---|---|---|---|
IJS iShares S&P SmallCap 600 Value ETF | -0.10 | 0.12 | 1.01 | -0.04 | -0.10 |
EEM iShares MSCI Emerging Markets ETF | 0.53 | 0.98 | 1.13 | 0.43 | 1.89 |
EFV iShares MSCI EAFE Value ETF | 0.91 | 1.40 | 1.19 | 1.17 | 3.90 |
VB Vanguard Small-Cap ETF | 0.20 | 0.52 | 1.07 | 0.22 | 0.69 |
VTV Vanguard Value ETF | 0.46 | 0.77 | 1.11 | 0.51 | 1.86 |
TIP iShares TIPS Bond ETF | 1.06 | 1.52 | 1.19 | 0.52 | 3.30 |
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Dividends
Dividend yield
Larry Swedroe Simple Portfolio provided a 2.61% dividend yield over the last twelve months.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.61% | 2.50% | 2.55% | 4.23% | 3.03% | 1.52% | 2.22% | 2.65% | 2.10% | 1.84% | 1.52% | 2.12% |
| Portfolio components: | ||||||||||||
IJS iShares S&P SmallCap 600 Value ETF | 1.97% | 1.78% | 1.42% | 1.46% | 1.52% | 1.00% | 1.66% | 1.75% | 1.41% | 1.22% | 1.59% | 1.41% |
EEM iShares MSCI Emerging Markets ETF | 2.20% | 2.43% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.24% | 1.89% | 1.89% | 2.49% | 2.23% |
EFV iShares MSCI EAFE Value ETF | 3.97% | 4.67% | 4.36% | 4.17% | 4.07% | 2.42% | 4.62% | 4.56% | 3.56% | 3.27% | 3.59% | 4.87% |
VB Vanguard Small-Cap ETF | 1.46% | 1.30% | 1.55% | 1.59% | 1.24% | 1.14% | 1.39% | 1.67% | 1.35% | 1.50% | 1.48% | 1.43% |
VTV Vanguard Value ETF | 2.31% | 2.31% | 2.46% | 2.52% | 2.15% | 2.56% | 2.50% | 2.73% | 2.29% | 2.44% | 2.60% | 2.22% |
TIP iShares TIPS Bond ETF | 2.93% | 2.52% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% | 1.67% |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.
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Worst Drawdowns
The table below displays the maximum drawdowns of the Larry Swedroe Simple Portfolio. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.
The maximum drawdown for the Larry Swedroe Simple Portfolio was 39.90%, occurring on Mar 9, 2009. Recovery took 404 trading sessions.
The current Larry Swedroe Simple Portfolio drawdown is 2.17%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -39.9% | Oct 30, 2007 | 341 | Mar 9, 2009 | 404 | Oct 13, 2010 | 745 |
| -25.44% | Jan 17, 2020 | 42 | Mar 18, 2020 | 164 | Nov 9, 2020 | 206 |
| -19.04% | Nov 10, 2021 | 224 | Sep 30, 2022 | 374 | Mar 28, 2024 | 598 |
| -13.65% | May 2, 2011 | 108 | Oct 3, 2011 | 80 | Jan 27, 2012 | 188 |
| -13.29% | Apr 27, 2015 | 202 | Feb 11, 2016 | 123 | Aug 8, 2016 | 325 |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
Diversification Metrics
Number of Effective Assets
The portfolio contains 6 assets, with an effective number of assets of 4.16, reflecting the diversification based on asset allocation. This number of effective assets suggests a highly concentrated portfolio, where a few assets dominate the allocation, potentially increasing the portfolio's risk due to lack of diversification.
Asset Correlations Table
| ^GSPC | TIP | EEM | EFV | IJS | VTV | VB | Portfolio | |
|---|---|---|---|---|---|---|---|---|
| ^GSPC | 1.00 | -0.11 | 0.75 | 0.79 | 0.82 | 0.92 | 0.89 | 0.89 |
| TIP | -0.11 | 1.00 | -0.07 | -0.06 | -0.12 | -0.13 | -0.10 | 0.08 |
| EEM | 0.75 | -0.07 | 1.00 | 0.79 | 0.66 | 0.71 | 0.71 | 0.78 |
| EFV | 0.79 | -0.06 | 0.79 | 1.00 | 0.72 | 0.80 | 0.75 | 0.86 |
| IJS | 0.82 | -0.12 | 0.66 | 0.72 | 1.00 | 0.85 | 0.95 | 0.92 |
| VTV | 0.92 | -0.13 | 0.71 | 0.80 | 0.85 | 1.00 | 0.87 | 0.90 |
| VB | 0.89 | -0.10 | 0.71 | 0.75 | 0.95 | 0.87 | 1.00 | 0.93 |
| Portfolio | 0.89 | 0.08 | 0.78 | 0.86 | 0.92 | 0.90 | 0.93 | 1.00 |
AI Insight on Diversification
The portfolio is moderately diversified but shows signs of concentration among certain equity positions. The correlation matrix reveals that the equity components—EEM (Emerging Markets), EFV (Developed Markets), IJS (Small-Cap Value), VTV (Large-Cap Value), and VB (Small-Cap)—are highly correlated with each other, with correlations mostly above 0.7 and as high as 0.95 between IJS and VB. This high degree of correlation among equity holdings suggests that these positions move largely in tandem, which reduces the diversification benefit within the equity portion of the portfolio.
In contrast, TIP (Treasury Inflation-Protected Securities) exhibits low to slightly negative correlations with the equity positions, ranging from about -0.13 to -0.06, and a very low positive correlation of 0.08 with the portfolio overall. This low correlation indicates that TIP provides meaningful diversification benefits by behaving differently from the equity assets, potentially reducing overall portfolio volatility and offering a hedge against inflation.
Looking at the portfolio’s correlation with individual positions, the portfolio correlates most strongly with VB (0.93), VTV (0.90), and IJS (0.92), indicating these positions have a dominant influence on the portfolio’s behavior. The relatively lower correlation with TIP suggests it plays a stabilizing role rather than driving portfolio returns.
Overall, while the portfolio benefits from the diversification provided by TIP, the high correlations among the equity positions point to a concentrated exposure within equities, particularly in value and small-cap segments. This concentration could lead to less risk reduction than a portfolio with more varied asset classes or less correlated equity holdings. Therefore, the portfolio is somewhat diversified but leans toward concentration within correlated equity segments.