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Larry Swedroe Portfolio
0.42%June 04 | MyPlanIQ portfolio symbol P_79048

  • Portfolio Overview
  • Asset Allocation and ETFs
  • Performance
  • Calculators
  • Rolling Returns
  • Drawdowns

Portfolio Overview


Overview of Larry Portfolio

1. Background Information

The "Larry Portfolio" is named after Larry Swedroe, a well-known financial author, advisor, and proponent of evidence-based investing. Larry Swedroe is a principal at Buckingham Strategic Wealth and has written numerous books on investing, including "The Only Guide to a Winning Investment Strategy You'll Ever Need." His philosophy emphasizes low-cost, passive investing, diversification, and risk management. The Larry Portfolio is designed to be a simple, low-maintenance investment strategy that minimizes risk while still providing reasonable returns.

2. Asset Allocation and Holdings

The Larry Portfolio is heavily weighted towards bonds, with 70% allocated to the iShares 3-7 Year Treasury Bond ETF (IEI). This reflects a conservative approach, prioritizing capital preservation and income generation. The remaining 30% is allocated to equities, with a focus on small-cap value and international diversification:

  • 15% in iShares S&P Small-Cap 600 Value ETF (IJS): Provides exposure to small-cap U.S. stocks, which historically have higher growth potential but come with higher risk.
  • 7.5% in WisdomTree International SmallCap Dividend ETF (DLS): Offers exposure to international small-cap dividend-paying stocks, adding geographic diversification.
  • 7.5% in iShares MSCI Emerging Markets ETF (EEM): Provides exposure to emerging markets, which offer higher growth potential but also higher volatility.

Diversification: The portfolio is well-diversified across asset classes (bonds and equities) and geographies (U.S., international, and emerging markets). This reduces the risk of overexposure to any single market or sector.

Risk Level: The portfolio is relatively conservative due to its heavy bond allocation. However, the equity portion introduces some risk, particularly through small-cap and emerging market exposure.

Pros:

  • Low-cost and passive, aligning with Larry Swedroe's philosophy.
  • Strong diversification reduces overall portfolio risk.
  • Conservative bond allocation provides stability and income.

Cons:

  • Heavy bond allocation may limit growth potential in strong equity markets.
  • Small-cap and emerging market exposure can be volatile.
  • May underperform in low-interest-rate environments.

3. Application for Retirement 401(k) and IRA Investors

The Larry Portfolio is well-suited for retirement investors, particularly those nearing retirement or with a lower risk tolerance. Its conservative allocation helps protect capital while still providing growth opportunities through equities. Here's how investors can implement this portfolio in their 401(k) or IRA accounts:

  • 401(k) Accounts: Investors should review their plan's investment options to find funds that closely match the ETFs in the Larry Portfolio. For example:
    • Look for a U.S. small-cap value index fund to replace IJS.
    • Find an international small-cap fund or a broad international equity fund to replace DLS.
    • Use an emerging markets equity fund to replace EEM.
    • Select an intermediate-term bond fund to replace IEI.
  • IRA Accounts: Investors can directly purchase the ETFs mentioned in the portfolio, as IRAs typically offer more flexibility in investment choices.

By carefully selecting funds that align with the Larry Portfolio's asset allocation, retirement investors can create a low-cost, diversified portfolio tailored to their risk tolerance and long-term goals.

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Asset Allocation


Symbol Category/Sector Target Weight
IJS
iShares S&P Small-Cap 600 Value ETF 		US Equity 15%
DLS
WisdomTree International SmallCap Dividend Fund 		International Equity 7.5%
EEM
iShares MSCI Emerging Markets ETF 		International Equity 7.5%
IEI
iShares 3-7 Year Treasury Bond ETF 		Fixed Income 70%


Historical Performance


Larry Swedroe Portfolio Historical Returns

Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
Larry Swedroe Portfolio 2.71% 6.19% 2.85% 2.23% 2.86% 3.80% NA 4.21%
VFINX (VANGUARD 500 INDEX FUND INVESTOR SHARES) 2.03% 14.20% 14.72% 15.60% 12.92% 14.19% 10.37% 10.35%
VSMGX (VANGUARD LIFESTRATEGY MODERATE GROWTH FUND INVESTOR SHARES) 5.23% 10.75% 8.37% 7.42% 6.31% 7.36% 6.07% 5.72%
Data as of 06/04/2025, AR inception is 01/11/2007

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Larry Swedroe Portfolio Historical Return Chart


Calculators


Dollar Cost Average Calculator for Larry Swedroe Portfolio

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Rolling Returns


From 01/11/2007 to 06/04/2025, the worst annualized return of 3-year rolling returns for Larry Swedroe Portfolio is -2.61%.
From 01/11/2007 to 06/04/2025, the worst annualized return of 5-year rolling returns for Larry Swedroe Portfolio is 0.26%.
From 01/11/2007 to 06/04/2025, the worst annualized return of 10-year rolling returns for Larry Swedroe Portfolio is 1.85%.

Maximum Drawdown

Larry Swedroe Portfolio Maximum Drawdown