Rick Ferri Core Four Portfolio

Background

The Core Four Portfolio was developed by Rick Ferri, a financial advisor, author, and prominent member of the Bogleheads investing community. Ferri designed the strategy to capture the essence of global diversification using only a small number of low-cost index funds. Building on the same principles championed by John Bogle—simplicity, broad diversification, and minimal fees—the Core Four approach provides investors with exposure to the key sources of return across both equity and bond markets. The portfolio serves as a practical, streamlined model for individual investors seeking institutional-quality diversification without unnecessary complexity.

Primary Goals

The primary goal of the Core Four Portfolio is to deliver broad global diversification and balanced risk exposure through a simple and transparent structure. By combining four core asset classes, the portfolio seeks to participate in global economic growth while managing volatility and inflation risk. The secondary goal is efficiency—to achieve strong risk-adjusted returns using only a few low-cost index funds that are easy to implement and maintain.

The design is intended to remain resilient across multiple economic environments:

• Economic expansion: Domestic and international equities benefit from rising corporate earnings and consumer demand.
• Inflationary periods: Real estate and equity ownership provide partial protection as asset prices and incomes adjust upward.
• Recession or deflation: Bonds stabilize portfolio value through income generation and potential price appreciation.
• Market volatility: Diversification across asset classes reduces large drawdowns and supports long-term investor discipline.

By focusing on global coverage and asset class balance, the portfolio is designed to perform consistently without relying on market timing or forecasting.

Construction

The Core Four Portfolio includes four major asset categories that together represent the global investment opportunity set. Each serves a distinct role in balancing growth, stability, and inflation protection:

• U.S. Total Stock Market: The foundation of the portfolio, representing broad exposure to American companies of all sizes and sectors.
• Total International Stock Market: Adds diversification through developed and emerging non-U.S. markets, reducing dependence on the U.S. economy.
• Total U.S. Bond Market: Provides income, capital preservation, and protection during periods of economic weakness or falling interest rates.
• Real Estate Investment Trusts (REITs): Offer exposure to commercial real estate and act as a partial hedge against inflation while adding a distinct source of return.

Together, these components form a globally diversified, four-asset structure that balances growth, stability, and inflation protection. The Core Four Portfolio is easy to implement, cost-effective to maintain, and flexible enough to adjust to different risk tolerances—making it a simple yet comprehensive framework for long-term investors who want to “own the market” without unnecessary complexity.

Performance & Returns

Total Return by Period

Updated: Oct 31, 2025

1 Day	1 Week	28 Days	90 Days	1 Year	3 Years	5 Years	10 Years
0.05%	-0.39%	0.48%	5.46%	11.14%	36.55%	30.83%	58.20%

Total Return by Year

2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
8.91%	14.13%	-16.26%	11.20%	11.85%	19.41%	-5.35%	14.51%	6.56%	-0.36%

10 Year Performance

Total Return	Annualized Return	CAGR	Max Drawdown	Sharpe Ratio	Sortino Ratio	Calmar Ratio	Ulcer Index
58.20%	5.18%	4.71%	-35.97%	0.20	0.24	0.14	0.08

Asset Allocation

Symbol	Description	Weight %
VTI	Vanguard Total Stock Market ETF	30.0
VXUS	Vanguard Total International Stock ETF	24.0
BND	Vanguard Total Bond Market ETF	40.0
VNQ	Vanguard Real Estate ETF	6.0

Total Return Graph

Comparisons with Other Portfolios