Core Four Portfolio
Apr 10, 2007 – Sep 23, 2026, Rebalanced annually
| Final balance | CAGR | Max drawdown | Sharpe ratio | |
|---|---|---|---|---|
| Core Four | $43,219 | 7.81% | −47.94% | 0.56 |
| S&P 500 | $75,807 | 10.97% | −55.19% | 0.63 |
| Core Four | S&P 500 | |
|---|---|---|
| Final balance | $43,219 | $75,807 |
| CAGR | 7.81% | 10.97% |
| Max drawdown | −47.94% | −55.19% |
| Sharpe ratio | 0.56 | 0.63 |
Allocation
- VTIUS total stock market48%
- VEUInternational stocks24%
- VNQUS real estate8%
- BNDUS total bond market20%
Loading the growth chart…
Growth of $10,000
- Core Four
- S&P 500
Metrics
| Return | Core Four | S&P 500 |
|---|---|---|
| Final balance | $43,219 | $75,807 |
| Total return | 332.19% | 658.07% |
| CAGR | 7.81% | 10.97% |
| Calendar years | Core Four | S&P 500 |
| Best year | 26.04% | 32.31% |
| Worst year | −29.76% | −36.80% |
| Positive years | 13 of 18 | 15 of 18 |
| Risk | Core Four | S&P 500 |
| Max drawdown | −47.94% | −55.19% |
| Longest drawdown | 3.3 years | 4.9 years |
| Volatility (annualized) | 15.75% | 19.64% |
| Risk-adjusted | Core Four | S&P 500 |
| Sharpe ratio | 0.56 | 0.63 |
| Sortino ratio | 0.78 | 0.89 |
| Calmar ratio | 0.16 | 0.20 |
| Return | Core Four | S&P 500 |
|---|---|---|
| Final balance | $43,219 | $75,807 |
| Total return | 332.19% | 658.07% |
| CAGR | 7.81% | 10.97% |
| Calendar years | Core Four | S&P 500 |
| Best year | 26.04% | 32.31% |
| Worst year | −29.76% | −36.80% |
| Positive years | 13 of 18 | 15 of 18 |
| Risk | Core Four | S&P 500 |
|---|---|---|
| Max drawdown | −47.94% | −55.19% |
| Longest drawdown | 3.3 years | 4.9 years |
| Volatility (annualized) | 15.75% | 19.64% |
| Risk-adjusted | Core Four | S&P 500 |
| Sharpe ratio | 0.56 | 0.63 |
| Sortino ratio | 0.78 | 0.89 |
| Calmar ratio | 0.16 | 0.20 |
Worst drawdowns
| Decline | Peak | Bottom | Recovered |
|---|---|---|---|
| −47.9% | Oct 2007 | Mar 2009 | Feb 2011 |
| −28.4% | Feb 2020 | Mar 2020 | Aug 2020 |
| −24.3% | Jan 2022 | Oct 2022 | Mar 2024 |
| −17.2% | Apr 2011 | Oct 2011 | Feb 2012 |
| −14.3% | Aug 2018 | Dec 2018 | Apr 2019 |
Annual returns
| Year | Core Four | S&P 500 |
|---|---|---|
| 2007* | +2.59% | +2.57% |
| 2008 | −29.76% | −36.80% |
| 2009 | +26.04% | +26.35% |
| 2010 | +14.71% | +15.06% |
| 2011 | −0.62% | +1.89% |
| 2012 | +14.43% | +15.99% |
| 2013 | +19.22% | +32.31% |
| 2014 | +8.53% | +13.46% |
| 2015 | −0.67% | +1.23% |
| 2016 | +8.51% | +12.00% |
| 2017 | +17.95% | +21.71% |
| 2018 | −6.38% | −4.57% |
| 2019 | +24.04% | +31.22% |
| 2020 | +13.95% | +18.33% |
| 2021 | +17.18% | +28.73% |
| 2022 | −17.83% | −18.18% |
| 2023 | +18.38% | +26.18% |
| 2024 | +13.43% | +24.89% |
| 2025 | +17.65% | +17.72% |
| 2026* | +10.17% | +13.47% |
* Partial year
About the Core Four Portfolio
Rick Ferri introduced the Core Four on the Bogleheads forum in 2007. It's the Three-Fund plus a separate slice of real estate (REITs). This page uses his version with 80% in stocks.
Commercial real estate is a large part of the economy, but a small part of the stock market. That's why Ferri holds REITs on their own. VEU tracks the international index he first picked. The newer VXUS only started in 2011.
The Core Four Portfolio returned 7.8% a year from Apr 2007 to Sep 2026, against 11.0% for the S&P 500. Its biggest drop was 47.9%, against 55.2% for the S&P 500. It took 3.3 years to recover. It beat the S&P 500 in 2 of 18 full years.
Uses daily closing prices with dividends reinvested. Fund fees are included, but not taxes or trading costs. The backtest starts on Apr 10, 2007, the first day all four funds have prices. The S&P 500 is SPY.
Other portfolios
Three-Fund
The Bogleheads' portfolio, here 42% US stocks, 40% bonds, 18% international stocks.
- VTI42%
- VEU18%
- BND40%
Coffeehouse
Bill Schultheis' portfolio, 60% stocks in six equal slices, 40% bonds.
- VV10%
- VTV10%
- IJR10%
- IJS10%
- VEU10%
- VNQ10%
- BND40%
Swensen
David Swensen's portfolio, 50% stocks, 30% bonds, 20% real estate.
- VTI30%
- VEA15%
- VWO5%
- VNQ20%
- TIP15%
- IEF15%