Core Four
Total market, international, bonds and a dash of REITs.
Holding now
Signal from Dec 2025 close- VTI48%
- VEU24%
- BND20%
- VNQ8.0%
- VTIUS Total Market48.0%
- VEUIntl ex-US24.0%
- BNDUS Aggregate Bonds20.0%
- VNQUS REITs8.0%
Trailing returns
Through Sep 25, 2026 · 3Y+ annualised1M
-0.7%
YTD
+10.5%
1Y
+13.2%
3Y
+17.9%
5Y
+8.8%
10Y
+10.2%
Growth of $100
Backtest from Aug 1, 2002 to Sep 25, 2026 (24.0 years)
Growth of $100, rebased to the start of the selected range. Month-end prices, dividends reinvested, no taxes or trading costs.
Risk & return, full backtest
CAGR
+9.3%
Volatility
14.9%
Max drawdown
-48.1%
Sharpe
0.56
Sortino
0.79
Calmar
0.19
Best year
+27.6%
Worst year
-29.8%
Drawdowns
Percent below the prior peak, vs the S&P 500
Calendar-year returns
Faded bars are partial years · 67% of months positive
Strategy Lab
Stress-test the implementation: trade on the signal day's close or later, split the portfolio into tranches that rebalance on different days (reduces timing luck), or swap a fund for a same-asset-class alternative.
The idea
Rick Ferri's low-cost core. His point: the exact mix matters far less than keeping costs low and sticking with it.
The rules
- 148% US total market, 24% international, 20% aggregate bonds, 8% REITs.
- 2Rebalance annually.
Funds used
- BND US Aggregate Bonds
- VEU Intl ex-US
- VNQ US REITs
- VTI US Total Market
Early history uses proxy funds: AGG, EFA, IEF, IYR, SHY.
Recent allocations
Decided at each month-end, held the following month
- Dec 2025
- Dec 2024
- Dec 2023
- Dec 2022
- Dec 2021
- Dec 2020
- Dec 2019
- Dec 2018
- Dec 2017
- Dec 2016
- Dec 2015
- Dec 2014