Comparison - Lazy Portfolio ETF (2024)

FAQs

Are lazy portfolios good? ›

Lazy portfolios are designed to perform well in most market conditions, making them the perfect choice for long-term investors.

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

Two funds that have outperformed the S&P 500 and more than doubled in value in the past five years are the Invesco QQQ Trust (NASDAQ: QQQ) and the Vanguard Growth ETF (NYSEMKT: VUG). Here's a look at why these funds have done so well, and whether you should consider adding them to your portfolio.

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. The best-performing Lazy Portfolio (s.

An aggressive portfolio is ideal for someone with high risk tolerance and a lot of time to invest, while a conservative portfolio is better for someone with low risk tolerance and a short amount of time. A model portfolio doesn't necessarily make it the right portfolio for you.

Also, beyond an ETF share price, there is no minimum amount to invest, unlike for mutual funds. Any broker can turn an investor into a new ETF holder via a straightforward brokerage account. Investors can easily access the market or submarket they want to be in.

Which type of ETF is best? ›

ETFs for beginners

One way for beginner investors to get started is to buy ETFs that track broad market indexes, such as the S&P 500. In doing so, you're investing in some of the largest companies in the country, with the goal of long-term returns.

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.

By setting a 20% maximum drawdown level, investors can trade with peace of mind and always make meaningful decisions in the market that will, in the long run, protect their capital.

Acceptable drawdown level

Conservative strategies suggest minimum risk tolerance and slow but steady income. In low-risk strategies, a drawdown of no more than 15% is allowed, ideally no more than 10%.

Disadvantages of a portfolio

Logistics are challenging. Students must retain and compile their own work, usually outside of class. Motivating students to take the portfolio seriously may be difficult. Transfer students may have difficulties meeting program-portfolio requirements.

Building Your Lazy Portfolio

The 3 funds are US stocks (total US stock market), international stocks (total international stock market), and bonds. “It really can be that simple. You can buy an ETF for each of the three funds, set it and forget it.” said Zigmont.