Build Larry Swedroe’s Portfolio With ETFs

What is Larry Swedroe’s Portfolio?

Larry Swedroe Portfolios can be built with 3-8 ETFs. They are exposed to between 40% and 100% equities. They are low-risk to high-risk portfolios.

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How do you build Larry Swedroes’ portfolios?

Here is how you build Larry Swedroe’s Simple portfolio with ETFs

  • 15.00% US Large Cap Value (VTV)
  • 15.00% US Small Cap Value (VIOV)
  • 13.00% US Small Cap (VIOO)
  • 4.00% Emerging Markets (VWO)
  • 13.00% International Large Cap Value (EFV)
  • 40.00% TIPS (VTIP)

Below you can find many more Larry Swedroe portfolios along with which ETFs you need to use.

What is the historical return of Larry Swedroe’s portfolios?

Portfolio data was last updated on 11th of November 2022, 11:40 ET

NameYear to dateReturn in 202110 year returnCAGR since 1989 (%)STDEVDraw DownExpense ratioYield
Larry Swedroe Simple Portfolio-10.1315.698.048.7210.8-23.80%0.12%1.53
Larry Swedroe, The Larry Portfolio 1-14.626.475.787.336.68-7.67%0.10%2.04
Larry Swedroe, The Larry Portfolio 2-14.543.314.567.115.37-2.92%0.13%1.76
Larry Swedroe, Eliminate Fat Tails Portfolio (value tilt)-8.726.054.186.917.98-13.55%0.10%1.17
Larry Swedroe Big Rocks Portfolio-12.3714.037.828.019.59-20.56%0.11%2.08
Larry Swedroe Model Portfolios Conservative-9.999.185.596.766.53-11.68%0.08%1.88
Larry Swedroe Model Portfolios Moderate-12.3614.077.87.959.65-20.82%0.09%2.08
Larry Swedroe Model Portfolios Moderately Aggressive-14.7318.969.969.0212.94-29.96%0.11%2.27
Larry Swedroe Model Portfolios Highly Aggressive-17.123.8512.089.9416.28-39.10%0.12%2.47
Performance for Larry Swedroe’s Portfolios

Here is what the table is showing you

Year to date: This shows what the portfolio has returned this year starting from the first trading day of the year.

10 Year return: This shows the compounded annualized growth rate over a ten-year period. The current year is excluded from calculations.

CAGR since 1989: This shows the compounded annualized growth rate since 1989. The current year is excluded from calculations.

Expense ratio: This shows the cost of holding the portfolio if you were to construct the portfolio using the proposed ETFs.

Yield: This is the expected dividend yield of the portfolio.

Please note that past performance is not a guarantee of future returns.

How does Larry Swedroe’s portfolios compare to the best portfolios?

Below you can see the returns of the best portfolios that we have benchmarked.

NameSee PortfolioYear to dateReturn in 202110 year returnCAGR since 1989 (%)Draw Down
Premium PortfolioPremium-20.9732.1413.211.81-35.43%
Premium PortfolioPremium-18.728.7816.5211.28-37.63%
Premium PortfolioPremium-19.6425.6716.2911.25-37.00%
Premium PortfolioPremium-23.9913.4911.0311.21-44.87%
Premium PortfolioPremium-12.028.1714.4711.14-35.26%
Premium PortfolioPremium-14.924.7511.8510.99-36.46%
Premium PortfolioPremium-14.7929.0213.1510.99-40.85%
Premium PortfolioPremium-20.620.711.4510.93-37.91%
Premium PortfolioPremium-15.1224.5111.8710.88-36.35%
Premium PortfolioPremium-19.3822.9214.9910.85-32.77%
The 10 Best Performing Portfolios That We Have Benchmarked

Who is Larry Swedroe?

Larry Swedroe is a prolific author and director of research at the wealth management firm Buckingham Strategic Wealth.

He often visits the Bogleheads Forum, where he shares insights, knowledge, and answers questions. He is easily one of our favorite authors on investing.

He is also a clear runner-up for one of the three good guys in investing.

Larry Swedroe is a prolific author

Larry Swedroe has written many articles all over the web as well. Examples include articles on ETF.com, Forbes and finance.yahoo.com.

They also include articles and research on the Bam Alliance website. The BAM Alliance is a “community of independent advisors” that puts the clients first. BAM hold their fiduciary responsibility to a very high standard.

Larry Swedroe favors a data-driven approach to investing. The approach means that in all his books, he has plenty of evidence why he suggests a specific portfolio. In that regard, he is very much like Paul Merriman, who is also an evidence-based investor.

Larry Swedroe is a prolific writer.

Hos books include The Only Guide to a Winning Investment Strategy You’ll Ever Need (co-written), and Your Complete Guide to Factor-Based Investing: The Way Smart Money Invests Today.

Factor based investing

You may not think that you need to do any factor-based investing (smart beta), but the first 30 pages in this book are like a 500$ course on investing!

It teaches you everything about what asset classes are and how to think about them. It shows you what “the market” really is. And it teaches you that not all asset classes are asset classes!

Your Complete Guide to Factor-Based Investing: The Way Smart Money Invests Today

This is an excellent introduction to asset classes, the market, and why small-caps have outperformed.

What is unique about Larry Swedroe’s portfolios?

Larry Swedroe has designed some exciting portfolios that look like no one else’s. The one theme that runs through all of his portfolios is to keep the portfolios low on volatility.

Larry Swedroe favors safety over high-risk returns. This doesn’t mean that Larry Swedroe’s portfolios are lackluster!

On the contrary.

The first component of Larry Swedrowe’s portfolios is designed in such a way that they are heavy on low volatility asset classes like bonds.

The second component of Larry Swedroe’s portfolios is to add high-performing, high-risk asset classes like small caps to make the portfolio offer high returns.

The results of this portfolio jiu-jitsu are portfolios that have very low volatility and high returns in comparison to other portfolios with the same amount of bond allocation.

This makes the portfolios suited for typical savings situations or for clients that simply cannot stomach the high volatility of a 100% stock portfolio.

If you want to get inside of Larry Swedroe’s head to see how he thinks, I recommend his book The Only Guide to a Winning Investment Strategy You’ll Ever Need.

The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Preserves Wealth Today

The results of this portfolio jiu-jitsu are portfolios that have very low volatility and high returns

What is the asset allocation of the Larry Swedroe portfolios?

Below you can see the asset allocation for Larry Swedroe’s portfolios

Larry Swedroe Simple Portfolio

  • 15.00% US Large Cap Value (VTV)
  • 15.00% US Small Cap Value (VIOV)
  • 13.00% US Small Cap (VIOO)
  • 4.00% Emerging Markets (VWO)
  • 13.00% International Large Cap Value (EFV)
  • 40.00% TIPS (VTIP)

Larry Swedroe, “The Larry” Portfolio 1

  • 5.00% US Large Cap Value (VTV)
  • 5.00% US Large Cap (VV)
  • 5.00% US Small Cap Value (VIOV)
  • 5.00% US Small Cap (VIOO)
  • 10.00% International Large Cap Value (EFV)
  • 10.00% International Small Cap Blend (VSS)
  • 60.00% Intermediate-Term Treasuries (VGIT)

Larry Swedroe, “The Larry” Portfolio 2

  • 12.50% US Small Cap Value (VIOV)
  • 75.00% Intermediate-Term Treasuries (VGIT)
  • 12.50% International Small Cap Value (DLS)

Larry Swedroe, Eliminate Fat Tails Portfolio

  • 15.00% US Small Cap (VIOO)
  • 15.00% Emerging Markets (VWO)
  • 35.00% Cash (money market fund) (BIL)
  • 35.00% TIPS (VTIP)

Larry Swedroe’s Big Rocks Portfolio

  • 9.00% US Large Cap Value (VTV)
  • 9.00% US Large Cap (VV)
  • 9.00% US Small Cap Value (VIOV)
  • 9.00% US Small Cap (VIOO)
  • 6.00% REITs (VNQ)
  • 3.00% Emerging Markets (VWO)
  • 3.00% International All-World ex-US (VEU)
  • 6.00% International Large Cap Value (EFV)
  • 3.00% International Small Cap Blend (VSS)
  • 40.00% Short Term Treasuries (VGSH)
  • 3.00% International Small Cap Value (DLS)

Larry Swedroe Model Portfolios Highly Aggressive

  • 15.00% US Large Cap Value (VTV)
  • 15.00% US Large Cap Blend (VV)
  • 15.00% US Small Cap Value (VIOV)
  • 15.00% US Small Cap (VIOO)
  • 10.00% REITs (VNQ)
  • 5.00% Emerging Markets (VWO)
  • 10.00% International Value (EFV)
  • 10.00% International Small Cap Blend (VSS)
  • 5.00% International All-World ex-US (VEU)

Larry Swedroe Model Portfolios Moderately Aggressive

  • 9.00% US Large Cap Value (VTV)
  • 9.00% US Large Cap Blend (VV)
  • 9.00% US Small Cap Value (VIOV)
  • 9.00% US Small Cap (VIOO)
  • 6.00% REITs (VNQ)
  • 3.00% Emerging Markets (VWO)
  • 6.00% International Value (EFV)
  • 6.00% International Small Cap Blend (VSS)
  • 3.00% International All-World ex-US (VEU)
  • 40.00% Short Term Treasuries (VGSH)

Larry Swedroe Model Portfolios Moderate

  • 9.00% US Large Cap Value (VTV)
  • 9.00% US Large Cap Blend (VV)
  • 9.00% US Small Cap Value (VIOV)
  • 9.00% US Small Cap (VIOO)
  • 4.00% REITs (VNQ)
  • 2.00% Emerging Markets (VWO)
  • 6.00% International Value (EFV)
  • 6.00% International Small Cap Blend (VSS)
  • 3.00% International All-World ex-US (VEU)
  • 40.00% Short Term Treasuries (VGSH)

Larry Swedroe Model Portfolios Conservative

  • 6.00% US Large Cap Value (VTV)
  • 6.00% US Large Cap Blend (VV)
  • 6.00% US Small Cap Value (VIOV)
  • 6.00% US Small Cap (VIOO)
  • 3.00% REITs (VNQ)
  • 2.00% Emerging Markets (VWO)
  • 4.00% International Value (EFV)
  • 4.00% International Small Cap Blend (VSS)
  • 2.00% International All-World ex-US (VEU)
  • 60.00% Short Term Treasuries (VGSH)

Where can I learn more about Larry Swedroe?

Larry Swedroe is the director of research at Buckingham Wealth Advisors.

Larry Swedroe is a prolific writer – here is an overview of all of his books on Amazon.

You can find his articles on ETF.com, where he is a frequent contributor.

Larry Swedroe also visits the Bogleheads forum, where he helps out answering questions and cutting through the F.U.D.

Here is an excellent youtube playlist of some extremely educational from Larry Swedroe

What are Larry Swedroe’s best books

Larry Swedroe’s two best books are:

The Only Guide to a Winning Investment Strategy You’ll Ever Need

The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Preserves Wealth Today

Your Complete Guide to Factor-Based Investing: The Way Smart Money Invests Today.

Your Complete Guide to Factor-Based Investing: The Way Smart Money Invests Today

Suggestions for your next steps

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You stand to gain thousands more dollars EACH YEAR for the price of a few months of Netflix.

If you have already committed to a portfolio – good for you! If you need help maintaining the portfolio you will find our rebalance worksheet useful.

Rebalancing your portfolio lowers your risk and may provide higher returns in the long run. It is completely FREE.

You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.

Rebalancing lowers your portfolio risk and can increase your returns.

What is the “Larry Portfolio”

The Larry portfolio is made by Larry Swedroe and has a significant allocation to bonds and a smaller allocation to small-cap stocks. It does this to capture more of the small-cap risk premia (higher returns) but retains stability through the heavy allocation to bonds.