Big Rocks Moderate Portfolio by Larry Swedroe

Details

The Big Rocks Moderate 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 and closely resembles a standard 60/40 portfolio.

It invests 54% in equities, 40% in bonds, and 6% in REITs.

Asset Allocation & Recommended ETFs

Weight
Ticker
ETF Name
Sector
40%
AGG
iShares Core U.S. Aggregate Bond ETF
Bond, U.S., All-Term
9%
SPY
SPDR S&P 500 ETF
Equity, U.S., Large Cap
9%
IWD
iShares Russell 1000 Value ETF
Equity, U.S., Large Cap, Value
9%
IWM
iShares Russell 2000 ETF
Equity, U.S., Small Cap
9%
IWN
iShares Russell 2000 Value ETF
Equity, U.S., Small Cap, Value
6%
EFV
iShares MSCI EAFE Value ETF
Equity, Large Cap Inter. Developed, Value
6%
VNQ
Vanguard Real Estate Index Fund ETF
Real Estate, U.S.
3%
EFA
iShares MSCI EAFE ETF
Equity, Inter. Developed, Large Cap
3%
SCZ
iShares MSCI EAFE Small-Cap ETF
Equity, International, Small Cap
3%
DLS
WisdomTree International SmallCap Dividend
Equity, Inter. Developed, Small Cap Value
3%
EEM
iShares MSCI Emerging Markets ETF
Equity, Emerging Markets, Large Cap

Performance Metrics

All Data
Annual Return
7.5%
Sharpe Ratio
0.57
10 Year Annual Return
5.2%
Volatility (annualized)
9.7%
Max Drawdown
-34.4%
Positive Periods
68.5%
Dot Com Annual Return
1.0%
Great Financial Crisis Return
-0.5%
Trade Frequency
Static
Ulcer Performance Index
0.9

How to Invest in the Big Rocks Moderate Portfolio

M1 Finance is the recommended platform to invest in this portfolio.  Find out why.

Big Rocks Moderate Portfolio Rolling Returns

Low
Average
High
1-Year
-28.6%
7.9%
39.4%
3-Year
-7.6%
7.6%
19.1%
5-Year
-0.7%
7.6%
16.0%
10-Year
4.2%
7.4%
10.8%

Charts

Portfolio vs. 60/40 vs. S&P 500

All Data
Portfolio
60/40
S&P 500
Annual Return
7.5%
9.3%
10.3%
10Y Annual Return
5.2%
7.9%
12.2%
Sharpe Ratio
0.57
0.51
0.43
Max Drawdown
-34.4%
-29.7%
-50.97%
Volatility (annualized)
9.7%
9.9%
15.4%
Dot Com Annual Return
1.0%
-4.2%
-14.60%
Great Financial Crisis Annual Return
-0.5%
-0.3%
-5.66%
Positive Periods
68.5%
65.8%
63.3%

**S&P 500 backtest to 1972 and 60/40 backtest to 1970

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