The Larry Portfolio was created by Larry Swedroe and profiled in a book with Kevin Grogan titled Reducing the Risk of Black Swans.
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 seeks to match the returns of the stock market with lower volatility and risk by tilting towards value stocks.
Having a large portion of the portfolio in bonds while still trying to match the market is similar to the All-Weather Portfolio.
The portfolio invests 30% in equities and 70% in bonds.
Weight | Ticker | ETF Name | Sector | |
|---|---|---|---|---|
70% | IEF | iShares 7-10 Year Treasury Bond ETF | Bond, U.S., Intermediate-Term | |
15% | IWN | iShares Russell 2000 Value ETF | Equity, U.S., Small Cap, Value | |
7.5% | DLS | WisdomTree International SmallCap Dividend | Equity, Inter. Developed, Small Cap Value | |
7.5% | EEM | iShares MSCI Emerging Markets ETF | Equity, Emerging Markets, Large Cap |
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Low | Average | High | |
|---|---|---|---|
1-Year | -17.7% | 6.6% | 27.2% |
3-Year | -2.5% | 6.9% | 14.0% |
5-Year | -0.2% | 7.0% | 11.7% |
10-Year | 2.2% | 7.3% | 9.8% |
Portfolio | 60/40 | S&P 500 | |
|---|---|---|---|
Annual Return | 6.6% | 9.3% | 10.3% |
10Y Annual Return | 2.5% | 7.9% | 12.2% |
Sharpe Ratio | 0.73 | 0.51 | 0.43 |
Max Drawdown | -19.3% | -29.7% | -50.97% |
Volatility (annualized) | 6.0% | 9.9% | 15.4% |
Dot Com Annual Return | 8.5% | -4.2% | -14.60% |
Great Financial Crisis Annual Return | 5.4% | -0.3% | -5.66% |
Positive Periods | 70.0% | 65.8% | 63.3% |
**S&P 500 backtest to 1972 and 60/40 backtest to 1970
