The Big Rocks Conservative Portfolio was created by Larry Swedroe and profiled on Seeking Alpha.
Swedroe is the director of research for Buckingham Asset Management and author of numerous books including Your Complete Guide to a Safe and Secure Retirement and The Only Guide to a Winning Investment Strategy You’ll Ever Need.
The portfolio is intended to cover all the major “rocks” in investing with a heavy tilt towards bonds in order to be more conservative.
It invests 36% in equities, 60% in bonds, and 4% in REITs.
Weight | Ticker | ETF Name | Sector | |
|---|---|---|---|---|
60% | AGG | iShares Core U.S. Aggregate Bond ETF | Bond, U.S., All-Term | |
6% | SPY | SPDR S&P 500 ETF | Equity, U.S., Large Cap | |
6% | IWD | iShares Russell 1000 Value ETF | Equity, U.S., Large Cap, Value | |
6% | IWM | iShares Russell 2000 ETF | Equity, U.S., Small Cap | |
6% | IWN | iShares Russell 2000 Value ETF | Equity, U.S., Small Cap, Value | |
4% | EFV | iShares MSCI EAFE Value ETF | Equity, Large Cap Inter. Developed, Value | |
4% | VNQ | Vanguard Real Estate Index Fund ETF | Real Estate, U.S. | |
2% | EFA | iShares MSCI EAFE ETF | Equity, Inter. Developed, Large Cap | |
2% | SCZ | iShares MSCI EAFE Small-Cap ETF | Equity, International, Small Cap | |
2% | DLS | WisdomTree International SmallCap Dividend | Equity, Inter. Developed, Small Cap Value | |
2% | EEM | iShares MSCI Emerging Markets ETF | Equity, Emerging Markets, Large Cap |
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Low | Average | High | |
|---|---|---|---|
1-Year | -18.6% | 6.7% | 28.0% |
3-Year | -3.2% | 6.7% | 15.0% |
5-Year | 1.1% | 6.6% | 12.2% |
10-Year | 3.6% | 6.6% | 9.6% |
Portfolio | 60/40 | S&P 500 | |
|---|---|---|---|
Annual Return | 6.6% | 9.3% | 10.3% |
10Y Annual Return | 4.0% | 7.9% | 12.2% |
Sharpe Ratio | 0.64 | 0.51 | 0.43 |
Max Drawdown | -22.0% | -29.7% | -50.97% |
Volatility (annualized) | 7.0% | 9.9% | 15.4% |
Dot Com Annual Return | 3.9% | -4.2% | -14.60% |
Great Financial Crisis Annual Return | 1.9% | -0.3% | -5.66% |
Positive Periods | 72.1% | 65.8% | 63.3% |
**S&P 500 backtest to 1972 and 60/40 backtest to 1970
