Low Risk Vanguard Retirement Portfolio
May 16, 2020 12:35 AM ETVBMFX, VEXPX, VFICX.
Investment portfolios with low volatility, low drawdowns and high returns can be constructed with Vanguard mutual funds.
From January 2003, a dual momentum strategy applied to a five-fund Vanguard portfolio would have produced a safe 5% annual withdrawal rate while achieving a 6.76% annual balance increase.
The strategy described in this article is suitable for conservative investors. It requires quarterly reallocation of funds and is robust with respect to its two parameter selections.