BND 80% · VTI 12% · VXUS 6% · VNQ 2% CAGR +1.7%
SPY CAGR +12.0%
Shaded: major market crises Bear Market (2022)
Core-4 Portfolio 20/80
BND 80% · VTI 12% · VXUS 6% · VNQ 2% · Fixed income · REITs & real estate · U.S. total market
Rick Ferri · Core-4 Portfolio · 2007Sources (3)
5yr · 2021.10 – 2026.10 · $10,000 lump sum · monthly rebalancing · dividends reinvested · no taxes or fees · month-end
Final Balance $10,902
Invested $10,000
Gain +$902
SPY alone: $17,597
Annualized return +1.7%
10.2pp behind SPY
Max drawdown · month-end -16.8%
24 months from trough to recovery
SPY -23.9%
Loss after a 1-year hold 16%
8 of 49 past windows
12% even over 3 years
SPY 12%
Performance ⌄
Performance
Over 5 years it grew 1.1x; SPY grew 1.8x over the same period.
Calendar-year returns
Of 4 complete years: 1 with a loss, 1 ahead of SPY.
Show as a table
| Year | Selected allocation | SPY | In-year low |
|---|---|---|---|
| 2025 | +9.6% | +17.7% | -0.7% |
| 2024 | +4.2% | +24.9% | -2.7% |
| 2023 | +8.7% | +26.2% | -5.7% |
| 2022 | -14.2% | -18.2% | -16.8% |
Depending on when you bought
Every month in the window taken as a start, held one, three or five years.
Observed windows overlap and are not independent samples. These shares are not probabilities of future gains.
Risk & recovery
The deepest fall was -16.8%, regained 24 months after the low. During the Bear Market (2022) it returned -14.4%, while SPY returned -19.7%.
Compare allocations
The same holdings at different weights. Pick one and every figure and chart on this page switches to it.
| Allocation | |||
|---|---|---|---|
| +7.4% | -23.5% | 0.32 | |
| +5.5% | -21.3% | 0.19 | |
| +3.6% | -19.0% | 0.01 | |
| +1.7% | -16.8% | -0.25 |
- Annualized return
- +7.4%
- Max drawdown · month-end
- -23.5%
- Return for the risk
- 0.32
- Annualized return
- +5.5%
- Max drawdown · month-end
- -21.3%
- Return for the risk
- 0.19
- Annualized return
- +3.6%
- Max drawdown · month-end
- -19.0%
- Return for the risk
- 0.01
- Annualized return
- +1.7%
- Max drawdown · month-end
- -16.8%
- Return for the risk
- -0.25
Exploration on Lifolio; these counts do not establish investment performance or preference.
Holdings
By asset class: bonds 80% · equities 18% · real estate 2%. Its dividend yield over the last 12 months was 3.6%; the results reinvest dividends.
- BNDVanguard Total Bond Market Index Fund ETF Shares 80%
An ETF investing across the U.S. bond market.
- VTIVanguard Morningstar Total Stock Market ETF 12%
An ETF investing across the U.S. equity market.
- VXUSVanguard Total International Stock Index Fund ETF Shares 6%
An ETF investing in equity markets outside the U.S.
- VNQVanguard Real Estate Index Fund ETF Shares 2%
An ETF investing in U.S. real estate equities.
Where this allocation comes fromRick Ferri · Core-4 Portfolio · 2007
Also known as: Core Four Portfolio 20/80 · Classic Core-4 Portfolio (Low-Risk)
US stocks 12, international stocks 6, US REITs 2 and US bonds 80: Ferri's Low-Risk level.
| Asset in the source | Weight | Lifolio ETF |
|---|---|---|
| US total stock market | 12% | VTI |
| International stocks (ex-US) | 6% | VXUS |
| US REITs | 2% | VNQ |
| US aggregate bonds | 80% | BND |
Ferri splits stocks 60/30/10 across US, international and REITs. VXUS listed in January 2011, so history starts then.
Source: core-4.com core-4.com core-4.com
Lifolio is not affiliated with or endorsed by the people or organizations cited. Figures are historical simulations under Lifolio's standard conditions. Sources checked 2026-11-01.
Questions & methodology
What does the Core-4 Portfolio 20/80 hold?
Vanguard Total Bond Market Index Fund ETF Shares (BND): An ETF investing across the U.S. bond market. Vanguard Morningstar Total Stock Market ETF (VTI): An ETF investing across the U.S. equity market. Vanguard Total International Stock Index Fund ETF Shares (VXUS): An ETF investing in equity markets outside the U.S. Vanguard Real Estate Index Fund ETF Shares (VNQ): An ETF investing in U.S. real estate equities.
What were the return and risk of the Core-4 Portfolio 20/80?
From 2021.10 to 2026.10, the annualized return was +1.7% and the largest month-end drawdown was -16.8%. The Sharpe ratio (return for the risk) is -0.25.
How did it compare with holding SPY alone?
From 2021.10 to 2026.10, the annualized return was +1.7% for these weights and +12.0% for SPY. Over the same window the largest month-end drawdown was -16.8% for these weights and -23.9% for SPY.
How far did the Core-4 Portfolio 20/80 fall, and how long did it take to get back?
Over the selected 5 years, the largest month-end decline was -16.8%, from a high in 2021.12 to a low in 2022.09. It regained the old high 24 months after the low.
Are dividends, taxes and exchange rates included?
Dividends are reinvested and results are in USD. Taxes, currency moves against your home currency and trading fees are not included. These results use US-listed ETFs; Korea-listed ETFs such as KODEX and TIGER can be added in the backtest.
The server calculates portfolio examples and actual user allocations with the same period, starting balance and settings. Validated metrics and their supporting charts are shown together.
Price data through: 2026.10.30