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Rick Ferri Core Four Portfolio

Last updated Nov 29, 2022

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.

Expense Ratio

Rank 20 of 54

0.04%
0.00%0.94%
Dividend Yield

Rank 20 of 54

2.39%
0.00%4.59%
10Y Annualized Return

Rank 21 of 54

9.20%
3.43%53.98%
Sharpe Ratio

Rank 21 of 54

-0.67
-1.170.32
Maximum Drawdown

Rank 35 of 54

-31.88%
-91.88%-19.55%

Rick Ferri Core Four PortfolioAsset Allocation


Rick Ferri Core Four PortfolioPerformance

The chart shows the growth of $10,000 invested in Rick Ferri Core Four Portfolio in Jan 2010 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $28,114 for a total return of roughly 181.14%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


-15.00%-10.00%-5.00%0.00%JulyAugustSeptemberOctoberNovember
-5.28%
-5.25%
Rick Ferri Core Four Portfolio
Benchmark (^GSPC)
Portfolio components

Rick Ferri Core Four PortfolioReturns

As of Nov 29, 2022, the Rick Ferri Core Four Portfolio returned -17.13% Year-To-Date and 9.20% of annualized return in the last 10 years.


1M6MYTD1Y5Y10Y
Benchmark1.45%-4.82%-16.96%-13.86%8.56%10.84%
Rick Ferri Core Four Portfolio3.70%-5.12%-16.19%-13.82%5.87%8.30%
VTI
Vanguard Total Stock Market ETF
1.53%-3.92%-16.94%-14.72%9.81%12.59%
VEA
Vanguard FTSE Developed Markets ETF
9.57%-5.29%-15.05%-11.82%2.08%5.33%
BND
Vanguard Total Bond Market ETF
2.55%-5.20%-13.08%-13.33%-0.01%0.95%
VNQ
Vanguard Real Estate ETF
1.97%-14.08%-25.31%-19.02%3.94%6.96%

Rick Ferri Core Four PortfolioSharpe Ratio Chart

The Sharpe ratio shows whether the portfolio's excess returns are due to smart investment decisions or a result of taking a higher risk. The higher a portfolio's Sharpe ratio, the better its risk-adjusted performance.

The current Rick Ferri Core Four Portfolio Sharpe ratio is -0.67. A negative Sharpe ratio means that the risk-free rate is higher than the portfolio's return. This value does not convey any meaningful information.

The chart below displays rolling 12-month Sharpe Ratio.


-1.20-1.00-0.80-0.60-0.40-0.200.00JulyAugustSeptemberOctoberNovember
-0.76
-0.63
Rick Ferri Core Four Portfolio
Benchmark (^GSPC)
Portfolio components

Rick Ferri Core Four PortfolioDividends

Rick Ferri Core Four Portfolio granted a 2.39% dividend yield in the last twelve months.


PeriodTTM202120202019201820172016201520142013201220112010

Dividend yield

2.39%1.97%2.01%2.55%2.98%2.62%2.94%2.94%3.14%2.97%3.42%3.64%3.41%

Rick Ferri Core Four PortfolioDrawdowns Chart

The Drawdowns chart displays portfolio losses from any high point along the way.


-25.00%-20.00%-15.00%-10.00%-5.00%0.00%2022FebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovember
-16.40%
-17.49%
Rick Ferri Core Four Portfolio
Benchmark (^GSPC)
Portfolio components

Rick Ferri Core Four PortfolioWorst 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 28.73%, recorded on Mar 23, 2020. It took 107 trading sessions for the portfolio to recover.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-28.73%Feb 18, 202025Mar 23, 2020107Aug 24, 2020132
-24.52%Dec 28, 2021202Oct 14, 2022
-16.89%May 2, 2011108Oct 3, 2011101Feb 28, 2012209
-14.37%Aug 30, 201880Dec 24, 201866Apr 1, 2019146
-12.77%May 22, 2015183Feb 11, 2016103Jul 11, 2016286
-12.03%Apr 15, 201056Jul 2, 201065Oct 5, 2010121
-8.68%Apr 3, 201242Jun 1, 201254Aug 17, 201296
-8.03%Jan 29, 20189Feb 8, 2018139Aug 28, 2018148
-7.44%Jan 20, 201014Feb 8, 201022Mar 11, 201036
-7.26%May 22, 201323Jun 24, 201358Sep 16, 201381

Rick Ferri Core Four PortfolioVolatility Chart

Current Rick Ferri Core Four Portfolio volatility is 6.33%. 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.


10.00%15.00%20.00%25.00%30.00%35.00%JulyAugustSeptemberOctoberNovember
11.66%
13.39%
Rick Ferri Core Four Portfolio
Benchmark (^GSPC)
Portfolio components