Six portfolios you can actually buy, tested as whole portfolios.
One is the plain world market. The other five try to beat it, or to fall less, using broad markets, investment styles and holdings meant to move when stocks do not. Pick by how long you can wait and how far you can watch it fall.
Six portfolios and a plain world stock index (65% US stocks, 35% the rest of the world), 1990 to 2025. Each
gridline is a bigger step than the last. Simulated from index data, not fund records: each fund is
modeled as the indexes it tracks, less its fee and a trading charge. The trend part is an index before
trading costs, and its fund has existed only since September 2023. The One fund curve models VT at its
own fee. The plain index uses a cheaper two-fund regional basket. Both hold their regions in fixed
proportions here.
For someone who wants more growth from bigger bets on cheap companies, on rising shares and on trend, and can sit through deeper falls and years behind Plus trend.
8funds
$10,000 became
$1,110,000
Worst fall
$5,100 (−49.0%)
Costs a year on $10,000
$51
1990 to 2025, simulated
MaybeMore of the same three ideas, for more growth. Falls are deeper, and the gain over Plus trend is uncertain.
See portfolio
Which one is for you
Start with when you need the money, how big a loss you could live with, and which risks you are willing
to take. Keep money you need soon out of the part you invest in stocks. The losses below come out of the
simulated histories. They are not limits on future losses. Each is on $10,000 held at the top, 1990 to 2025.
If you want one fund and no decisions, One fund. Its worst fall took
$10,000 down to $4,720 (−52.8%) between 2007 and 2009; it was back above $10,000 after 63 months.
If you want a small edge over the market with four funds, Simple lean.
Its worst fall took $10,000 down to $4,790 (−52.1%), back above $10,000 after 63 months.
If you will hold nine funds and can watch the market pull ahead for a decade without selling, Full lean. Its worst fall took $10,000 down to $4,750 (−52.5%), back
above $10,000 after 62 months.
If you have retirement-account room and want something that can rise while stocks fall, Plus trend. Its worst fall took $10,000 down to $5,600 (−44.0%), back
above $10,000 after 38 months.
If a fall of half would make you sell, Cautious. Its worst fall took
$10,000 down to $8,190 (−18.1%), back above $10,000 after 18 months. It can still lose much more: on the long
simulated history, across 1937 to 1938, the same mix fell 27.2%.
If you can accept deeper losses and years behind Plus trend while seeking more growth,
Higher growth. It holds more of the value, momentum and trend
funds. Its simulated worst fall took $10,000 to $5,100 (−49.0%). Whether it earns more is
uncertain, and more so after tax.
One fund is the plain starting point. It does not decide how much of your money belongs in stocks at all.
The holding guide covers cash needs and accounts. The
stacking page asks what an extra fund has to earn to be worth holding.
How this was tested
The charts run the weights shown above through two simulated histories, with modeled fees and trading
costs. They use index data in place of fund records: US data stands in for foreign stocks in the long
history, and ordinary government bonds stand in for inflation-protected ones. Dollar figures are before
tax. What you are reading is a model. It does not name a best portfolio, and it does not tell you your
odds of beating the market. The About page explains the tests and
what they cannot show.