The "lazy" investor portfolio

The "lazy investor" typically employs a passive investment strategy that requires minimal ongoing effort and decision-making. This approach focuses on long-term growth through broad diversification and low costs, rather than actively trying to "beat the market."  

Here are the key characteristics of the investments held by a lazy investor:

Core Investments:

• Low-Cost, Broad-Market Index Funds and ETFs: This is the cornerstone of the lazy portfolio. These funds track a specific market index (like the S&P 500 for U.S. large-cap stocks, a total stock market index, or a broad international stock index).

  • Index Funds: Mutual funds that aim to match the performance of a specific index. They typically have lower expense ratios than actively managed funds.   

  • Exchange-Traded Funds (ETFs): Similar to index funds but trade on exchanges like stocks, offering more flexibility in buying and selling. They also generally have low expense ratios.  

  • Examples:

    • U.S. Total Stock Market ETF (e.g., VTI, ITOT, SCHB): Provides exposure to a wide range of U.S. stocks, from large to small cap.

    • S&P 500 ETF (e.g., SPY, IVV, VOO): Tracks the 500 largest publicly traded companies in the U.S. 

    • International Stock ETF (e.g., VXUS, IXUS, SCHF): Offers exposure to stocks in developed and emerging markets outside the U.S.  

    • Total Bond Market ETF (e.g., BND, AGG): Tracks a broad index of U.S. investment-grade bonds.   

Target-Date Funds: These are "all-in-one" funds that automatically adjust their asset allocation (the mix of stocks and bonds) over time based on a target retirement date. They start with a higher allocation to stocks for growth when the investor is younger and gradually shift to a more conservative mix with more bonds as the target date approaches. This eliminates the need for the investor to actively rebalance their portfolio.   

**The Lazy portfolio (for the smart investor)**

There are various portfolio for the smart and lazy investor.  The number of funds can range from three to several.  A one fund portfolio is usually accomplished by using a target fund.  

https://www.bogleheads.org/wiki/Lazy_portfolios 

Target fund 

Target date funds (TDFs) are a type of investment fund, often mutual funds, designed to make investing for retirement easier and more straightforward.  TDFs are designed to gradually shift from a higher allocation to stocks (which are riskier but have the potential for higher returns) to a higher allocation to bonds (which are less risky and offer more stability) as the target retirement date gets close. They invest in a diversified mix of asset classes, including stocks, bonds, and other investments.  More info on target funds

Three-fund portfolio

A three-fund portfolio is an investment strategy that involves holding mutual funds or ETFs that invest in U.S. stocks, international stocks and bonds. The strategy is popular with followers of the late Vanguard founder John Bogle, who valued simplicity in investing and keeping investment costs low.  Bogleheads resource wiki 

Possible investment portfolios 

A collection of investment portfolios from the simple three fund portfolio to the more complex.  source whit coat investor