Comparison - Lazy Portfolio ETF (2024)

FAQs

What is the best lazy portfolio? ›

The Tyler Golden Butterfly Portfolio is a High Risk portfolio and can be implemented with 5 ETFs. It's exposed for 40% on the Stock Market and for 20% on Commodities. In the last 30 Years, the Tyler Golden Butterfly Portfolio obtained a 7.68% compound annual return, with a 7.75% standard deviation.

Each Lazy Portfolio had a maximum drawdown exceeding -35% over the past ten years. Some of the worst Lazy Portfolios exceeded -40% in the same time frame.

A typical asset allocation for a lazy portfolio would be about 60% US stocks, 20% international stocks and 20% bonds. If you want to be a little less lazy, you can get more creative with your fund choices.

Ramsey's recommendation is to invest 100% of your portfolio in stocks, with no allocation to bonds or other fixed-income investments. He believes that over the long term, stocks will outperform other asset classes, and that a well-diversified stock portfolio is the best way to build wealth.

In investing, the 80-20 rule generally holds that 20% of the holdings in a portfolio are responsible for 80% of the portfolio's growth. On the flip side, 20% of a portfolio's holdings could be responsible for 80% of its losses.

Golden Butterfly vs Permanent Portfolio

Both portfolios perform admirably when compared to historical data, but when subjected to backtesting, it turns out that the Golden Butterfly slightly but significantly outperforms the Permanent Portfolio on CAGR and risk-adjusted return.

Butterfly Network's analyst rating consensus is a Moderate Buy.

Gold and stocks are driven by separate factors." Gold can also diversify your portfolio if you're invested in other asset classes. But exactly how much should you put into it? Experts typically recommend devoting between 5% to 10% of your portfolio to it.

From a mathematical perspective, it is important to remember that a drawdown of 50% requires a return of 100% to break even again.

What is a good Sharpe ratio? ›

The Sharpe Ratio helps rank and indicate the expected return compared to risk: Usually, any Sharpe ratio greater than 1.0 is considered acceptable to good by investors. A ratio higher than 2.0 is rated as very good. A ratio of 3.0 or higher is considered excellent.

A Lazy Portfolio is a collection of investments that requires very little maintenance. It's the typical passive investing strategy, for long-term investors, with time horizons of more than 10 years. Choose your investment style (Classic or Alternative?), pick your Lazy Portfolios and implement them with ETFs.

Go Be Lazy

In fact, it's ideal! The lazy portfolio is a hands-off and inexpensive approach to investing. It promises average returns, a diverse asset holding, and very few headaches.

This rule suggests that investors should not allocate more than 5% of their portfolio in any one stock or investment. The idea behind this rule is to limit the potential risk to the overall portfolio if one investment does not perform as expected.

The seven percent savings rule provides a simple yet powerful guideline—save seven percent of your gross income before any taxes or other deductions come out of your paycheck. Saving at this level can help you make continuous progress towards your financial goals through the inevitable ups and downs of life.

The efficient portfolios are the ones that lie on the boundary of PQVW. For example, at risk level x₂, there are three portfolios S, T, U. But portfolio S is called the efficient portfolio as it has the highest return, y₂, compared to T and U[needs dot].

An optimal portfolio gives the maximum projected return for any particular level of risk. An efficient portfolio, on the other hand, provides the best possible return for a given degree of risk or minimal risk for a given level of return. While these two phrases appear to be synonymous, they are not.

Three-fund lazy portfolios

These usually consist of three equal parts of bonds (total bond market or TIPS), total US market and total international market.