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Rick Ferri Core Four Portfolio

Last updated Apr 1, 2023

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 21 of 55

0.04%
0.00%0.94%
Dividend Yield

Rank 16 of 55

2.65%
0.00%4.33%
10Y Annualized Return

Rank 22 of 55

7.89%
2.63%52.97%
Sharpe Ratio

Rank 29 of 55

-0.45
-0.930.49
Maximum Drawdown

Rank 44 of 55

-48.48%
-82.98%-16.15%

Asset Allocation


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


130.00%140.00%150.00%160.00%170.00%180.00%NovemberDecember2023FebruaryMarch
163.50%
177.16%
Rick Ferri Core Four Portfolio
Benchmark (^GSPC)
Portfolio components

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 monthYear-To-Date6 months1 year5 years (annualized)10 years (annualized)
Benchmark3.51%7.03%12.88%-10.71%9.25%10.16%
Rick Ferri Core Four Portfolio2.30%6.16%13.92%-8.37%6.80%7.89%
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%

Sharpe 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 -0.45. 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.


-1.20-1.00-0.80-0.60-0.40-0.20NovemberDecember2023FebruaryMarch
-0.45
-0.46
Rick Ferri Core Four Portfolio
Benchmark (^GSPC)
Portfolio components

Dividends

Rick Ferri Core Four Portfolio granted a 2.65% dividend yield in the last twelve months.


PeriodTTM20222021202020192018201720162015201420132012

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.


-25.00%-20.00%-15.00%-10.00%NovemberDecember2023FebruaryMarch
-12.72%
-14.33%
Rick Ferri Core Four Portfolio
Benchmark (^GSPC)
Portfolio components

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, 2007355Mar 9, 2009493Feb 18, 2011848
-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
-8.68%Apr 3, 201242Jun 1, 201254Aug 17, 201296
-8.03%Jan 29, 20189Feb 8, 2018139Aug 28, 2018148
-7.26%May 22, 201323Jun 24, 201358Sep 16, 201381
-6.45%Sep 3, 202014Sep 23, 202033Nov 9, 202047

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.


10.00%15.00%20.00%25.00%30.00%35.00%NovemberDecember2023FebruaryMarch
11.10%
15.42%
Rick Ferri Core Four Portfolio
Benchmark (^GSPC)
Portfolio components