I love lazy portfolios and I recommend them as much as I can. A lazy portfolio is the perfect strategy for sleepy, calm and lazy investors with a long-term view.
The key point of a Lazy Portfolio is that it requires little maintenance. But also that they are well diversified, aim for lower volatility than the stock market and usually they can be implemented with few ETFs.
It’s a passive investing strategy for investors with time horizons of more than 5 years, ideally more than 10 years.
In order to keep always the desired level of risk, Lazy Portfolios require a rebalancing, usually once every year.
Rebalancing a portfolio means selling the ETFs which have better performance and buying the ones with worse performance to come back to the original percentage composition.
Historical returns and volatility
ETFs to replicateA Lazy Portfolio is a collection of investments that requires very little maintenance.
It’s the typical passive investing strategy, for long-term investors, with time horizons of more than 10 years.