Rick Ferri Core Four Portfolio
The Rick Ferri Core Four is a permanent portfolio proposed by Rick Ferri, a Bogleheads author, and investment adviser. As the name implies, it consists of four low-cost funds. Rick suggests that investors first determine their bond allocation (e.g. 20% or 40%). With the remaining funds allocate 50% to US stock, 40% to international, and 10% to REIT.
Asset Allocation
| Position | Category/Sector | Weight |
|---|---|---|
BND Vanguard Total Bond Market ETF | Total Bond Market | 20% |
VTI Vanguard Total Stock Market ETF | Large Cap Growth Equities | 48% |
VEA Vanguard FTSE Developed Markets ETF | Foreign Large Cap Equities | 24% |
VNQ Vanguard Real Estate ETF | REIT | 8% |
Performance
The chart shows the growth of $10,000 invested in Rick Ferri Core Four Portfolio in Oct 2022 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $26,350 for a total return of roughly 163.50%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly
Returns
As of Apr 1, 2023, the Rick Ferri Core Four Portfolio returned 6.16% Year-To-Date and 7.89% of annualized return in the last 10 years.
| 1 month | Year-To-Date | 6 months | 1 year | 5 years (annualized) | 10 years (annualized) | |
|---|---|---|---|---|---|---|
| Benchmark | 3.51% | 7.03% | 12.88% | -10.71% | 9.25% | 10.16% |
| Rick Ferri Core Four Portfolio | 2.30% | 6.16% | 13.92% | -8.37% | 6.80% | 7.89% |
| Portfolio components: | ||||||
VTI Vanguard Total Stock Market ETF | 2.71% | 7.18% | 13.17% | -10.19% | 10.36% | 11.75% |
VEA Vanguard FTSE Developed Markets ETF | 2.65% | 8.03% | 25.54% | -4.44% | 3.42% | 5.39% |
BND Vanguard Total Bond Market ETF | 2.68% | 3.25% | 4.69% | -4.65% | 0.87% | 1.29% |
VNQ Vanguard Real Estate ETF | -2.16% | 1.69% | 7.29% | -21.13% | 5.81% | 5.76% |
| Returns over 1 year are annualized | ||||||
Dividends
Rick Ferri Core Four Portfolio granted a 2.65% dividend yield in the last twelve months.
| Period | TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dividend yield | 2.65% | 2.34% | 2.00% | 2.03% | 2.58% | 3.02% | 2.66% | 2.98% | 2.98% | 3.18% | 3.01% | 3.46% |
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way.
Worst Drawdowns
The table below shows the maximum drawdowns of the Rick Ferri Core Four Portfolio. A maximum drawdown is an indicator of risk. It shows a reduction in portfolio value from its maximum due to a series of losing trades.
The maximum drawdown since January 2010 for the Rick Ferri Core Four Portfolio is 48.48%, recorded on Mar 9, 2009. It took 493 trading sessions for the portfolio to recover.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -48.48% | Oct 10, 2007 | 355 | Mar 9, 2009 | 493 | Feb 18, 2011 | 848 |
| -28.73% | Feb 18, 2020 | 25 | Mar 23, 2020 | 107 | Aug 24, 2020 | 132 |
| -24.52% | Dec 28, 2021 | 202 | Oct 14, 2022 | — | — | — |
| -16.89% | May 2, 2011 | 108 | Oct 3, 2011 | 101 | Feb 28, 2012 | 209 |
| -14.37% | Aug 30, 2018 | 80 | Dec 24, 2018 | 66 | Apr 1, 2019 | 146 |
| -12.77% | May 22, 2015 | 183 | Feb 11, 2016 | 103 | Jul 11, 2016 | 286 |
| -8.68% | Apr 3, 2012 | 42 | Jun 1, 2012 | 54 | Aug 17, 2012 | 96 |
| -8.03% | Jan 29, 2018 | 9 | Feb 8, 2018 | 139 | Aug 28, 2018 | 148 |
| -7.26% | May 22, 2013 | 23 | Jun 24, 2013 | 58 | Sep 16, 2013 | 81 |
| -6.45% | Sep 3, 2020 | 14 | Sep 23, 2020 | 33 | Nov 9, 2020 | 47 |
Volatility Chart
Current Rick Ferri Core Four Portfolio volatility is 8.57%. The chart below shows the rolling 10-day volatility. Volatility is a statistical measure showing how big price swings are in either direction. The higher asset volatility, the riskier it is, because the price movements are less predictable.