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% |
VEA Vanguard FTSE Developed Markets ETF | Foreign Large Cap Equities | 24% |
VNQ Vanguard Real Estate ETF | REIT | 8% |
VTI Vanguard Total Stock Market ETF | Large Cap Growth Equities | 48% |
Performance
Performance Chart
The chart shows the growth of an initial investment of $10,000 in Rick Ferri Core Four Portfolio, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends. The portfolio is rebalanced Quarterly
The earliest data available for this chart is Jul 26, 2007, corresponding to the inception date of VEA
Returns By Period
As of Nov 20, 2024, the Rick Ferri Core Four Portfolio returned 14.06% Year-To-Date and 8.33% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y (annualized) | 10Y (annualized) | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | 24.05% | 1.08% | 11.50% | 30.38% | 13.77% | 11.13% |
| Rick Ferri Core Four Portfolio | 14.03% | -0.25% | 7.51% | 21.49% | 9.16% | 8.33% |
| Portfolio components: | ||||||
VTI Vanguard Total Stock Market ETF | 24.70% | 1.68% | 12.42% | 32.52% | 14.95% | 12.63% |
VEA Vanguard FTSE Developed Markets ETF | 4.77% | -3.79% | -1.31% | 11.70% | 5.92% | 5.28% |
BND Vanguard Total Bond Market ETF | 1.72% | -0.70% | 2.98% | 6.21% | -0.32% | 1.40% |
VNQ Vanguard Real Estate ETF | 10.64% | -0.69% | 15.94% | 25.05% | 4.63% | 6.02% |
Monthly Returns
The table below presents the monthly returns of Rick Ferri Core Four 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | -0.16% | 3.11% | 2.80% | -4.02% | 4.10% | 1.41% | 2.74% | 2.45% | 1.76% | -2.35% | 14.03% | ||
| 2023 | 6.98% | -3.00% | 2.30% | 1.29% | -1.24% | 4.73% | 2.66% | -2.29% | -4.29% | -2.68% | 8.49% | 5.37% | 18.79% |
| 2022 | -4.92% | -2.32% | 1.61% | -7.12% | 0.07% | -7.04% | 6.91% | -4.23% | -8.66% | 5.38% | 6.75% | -3.92% | -17.58% |
| 2021 | -0.50% | 2.06% | 2.61% | 3.95% | 1.17% | 1.37% | 1.54% | 1.83% | -3.63% | 4.56% | -1.95% | 3.56% | 17.51% |
| 2020 | -0.26% | -5.87% | -11.89% | 9.25% | 4.26% | 2.28% | 3.98% | 4.56% | -2.44% | -2.14% | 10.08% | 3.89% | 14.40% |
| 2019 | 7.07% | 2.34% | 1.54% | 2.55% | -4.03% | 5.14% | 0.36% | -0.60% | 1.63% | 1.94% | 2.04% | 2.28% | 24.15% |
| 2018 | 3.06% | -3.86% | -0.65% | 0.42% | 1.39% | 0.29% | 2.18% | 1.58% | -0.05% | -6.02% | 1.60% | -5.94% | -6.35% |
| 2017 | 1.79% | 2.43% | 0.57% | 1.22% | 1.39% | 0.79% | 1.77% | 0.23% | 1.68% | 1.38% | 1.86% | 1.06% | 17.40% |
| 2016 | -4.10% | -0.58% | 6.04% | 0.76% | 0.93% | 0.59% | 3.37% | -0.17% | 0.37% | -2.28% | 1.16% | 2.00% | 8.03% |
| 2015 | -0.11% | 3.59% | -0.61% | 0.68% | 0.49% | -2.09% | 1.81% | -5.22% | -1.89% | 5.90% | -0.01% | -1.44% | 0.66% |
| 2014 | -2.13% | 4.22% | 0.17% | 0.83% | 1.84% | 1.62% | -1.58% | 2.53% | -2.59% | 2.17% | 1.53% | -0.70% | 7.96% |
| 2013 | 3.70% | 0.55% | 2.47% | 2.77% | -0.45% | -1.84% | 4.15% | -2.57% | 4.29% | 3.35% | 0.99% | 1.67% | 20.50% |
Expense Ratio
Rick Ferri Core Four Portfolio has an expense ratio of 0.04%, which is considered low compared to other funds. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.
Risk-Adjusted Performance
Risk-Adjusted Performance Rank
The current rank of Rick Ferri Core Four Portfolio is 52, suggesting that the investment has average results relative to other portfolios in terms of risk-adjusted performance. This ranking is determined by the cumulative values of the indicators listed below.
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 | |
|---|---|---|---|---|---|
VTI Vanguard Total Stock Market ETF | 2.57 | 3.45 | 1.47 | 3.75 | 16.43 |
VEA Vanguard FTSE Developed Markets ETF | 0.88 | 1.28 | 1.16 | 1.29 | 4.18 |
BND Vanguard Total Bond Market ETF | 1.12 | 1.64 | 1.20 | 0.43 | 3.66 |
VNQ Vanguard Real Estate ETF | 1.49 | 2.10 | 1.26 | 0.89 | 5.37 |
Dividends
Dividend yield
Rick Ferri Core Four Portfolio provided a 2.37% dividend yield over the last twelve months.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.37% | 2.38% | 2.33% | 1.94% | 1.93% | 2.40% | 2.73% | 2.33% | 2.54% | 2.48% | 2.57% | 2.36% |
| Portfolio components: | ||||||||||||
VTI Vanguard Total Stock Market ETF | 1.28% | 1.44% | 1.67% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% | 1.74% |
VEA Vanguard FTSE Developed Markets ETF | 3.05% | 3.16% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% | 3.68% | 2.60% |
BND Vanguard Total Bond Market ETF | 3.57% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
VNQ Vanguard Real Estate ETF | 3.84% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% | 3.60% | 4.32% |
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.
Worst Drawdowns
The table below displays the maximum drawdowns of the Rick Ferri Core Four 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 Rick Ferri Core Four Portfolio was 48.48%, occurring on Mar 9, 2009. Recovery took 493 trading sessions.
The current Rick Ferri Core Four Portfolio drawdown is 1.32%.
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 | 339 | Feb 22, 2024 | 541 |
| -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 |
Volatility
Volatility Chart
The current Rick Ferri Core Four Portfolio volatility is 2.57%, representing the average percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.
Diversification
Asset Correlations Table
| BND | VNQ | VEA | VTI | |
|---|---|---|---|---|
| BND | 1.00 | 0.02 | -0.11 | -0.17 |
| VNQ | 0.02 | 1.00 | 0.59 | 0.69 |
| VEA | -0.11 | 0.59 | 1.00 | 0.84 |
| VTI | -0.17 | 0.69 | 0.84 | 1.00 |