Ted Aronson Family Taxable Portfolio
0.94%April 16 | MyPlanIQ portfolio symbol P_1361

  • Portfolio Overview
  • Asset Allocation and ETFs
  • Performance
  • Calculators
  • Rolling Returns
  • Drawdowns

Portfolio Overview


Ted Aronson is an asset manager and the founder of AJO Partners, a quantitative investment management firm. He gained recognition in the investment community for his approach to portfolio management and his willingness to share his family's taxable account strategy publicly.

The Aronson Family Taxable Portfolio has been featured and tracked by MarketWatch.com's lazy portfolios, maintained by Paul Farrell. It gained popularity as a "lazy" portfolio due to its simple, low-maintenance approach to investing. The portfolio is designed for taxable accounts and aims to provide broad diversification across various asset classes. 

The term "lazy portfolio" refers to a passive investment strategy that requires minimal maintenance and frequent adjustments. These portfolios typically consist of a small number of low-cost index funds or ETFs that provide broad market exposure.

Portfolio Composition

The Aronson Family Taxable Portfolio consists of 11 funds covering four major asset classes: Emerging Market Equity, US Equity, Fixed Income, and Foreign Equity. Here's the breakdown of the portfolio's composition:

Asset Allocation:

  • 70% Stocks
  • 30% Fixed Income

Specific Allocations:

-- 20% in Vanguard Emerging Markets Stock Index (VEIEX) (ETF: VWO)

-- 15% in Vanguard 500 Index (VFINX) (ETF: VOO)

-- 15% in Vanguard Pacific Stock Index (VPACX) (ETF: VPL)

-- 10% in Vanguard Extended Market Index (VEXMX) (ETF: VXF)

-- 10% in Vanguard Inflation-Protected Securities (VIPSX) (ETF: TIP)

-- 5% in Vanguard European Stock Index (VEURX) (ETF: VGK)

-- 5% in Vanguard High-Yield Corporate (VWEHX) (ETF: JNK)

-- 5% in Vanguard Long-Term U.S. Treasury (VUSTX) (ETF: VGLT)

-- 5% in Vanguard Small Cap Growth (VISGX) (ETF: VBK)

-- 5% in Vanguard Small Cap Value Index (VISVX) (ETF: VBR)

-- 5% in Vanguard Total Stock Market Index (VTSMX) (ETF: VTI)

Application for Retirement Accounts (401(k) and IRA)

This portfolio can be adapted for retirement accounts with minor adjustments: 

For 401(k) Investors:

  • Match each ETF to the closest available fund in your 401(k) plan. For example:
    • VTI/VV → Use a US total stock market or S&P 500 index fund.
    • EEM → Use an emerging markets fund or international stock fund.
    • TLT/TIP → Use a long-term Treasury or inflation-protected bond fund.
  • If a specific fund (e.g., IJS or VGK) isn't available, allocate to the broader asset class (e.g., small-cap value → US small-cap; VGK → international developed stocks).

For IRA Investors:

  • IRAs offer more flexibility, so you can replicate the portfolio exactly using the listed ETFs.
  • Consider tax efficiency: Place bond-heavy ETFs (e.g., TLT, HYG) in tax-advantaged accounts and equity ETFs in taxable accounts.

This portfolio is suitable for investors seeking a balanced, long-term strategy with moderate risk. Regular rebalancing (annually or semi-annually) is recommended to maintain the target allocations.

Rule of Thumb:

  • For stock funds, prioritize index funds, especially low-cost index funds.
  • For bond funds, prioritize core bond funds or high-guality actively managed total return bond funds (if available).
Click here for more portfolio details and features ►

Asset Allocation


Symbol Category/Sector Target Weight
VEIEX
VANGUARD EMERGING MARKETS STOCK INDEX FUND INVESTOR SHARES 		International Equity 20%
VFINX
VANGUARD 500 INDEX FUND INVESTOR SHARES 		US Equity 15%
VPACX
VANGUARD PACIFIC STOCK INDEX FUND INVESTOR SHARES 		International Equity 15%
VEXMX
VANGUARD EXTENDED MARKET INDEX FUND INVESTOR SHARES 		US Equity 10%
VIPSX
VANGUARD INFLATION-PROTECTED SECURITIES FUND INVESTOR SHARES 		Fixed Income 10%
VEURX
VANGUARD EUROPEAN STOCK INDEX FUND INVESTOR SHARES 		International Equity 5%
VWEHX
VANGUARD HIGH-YIELD CORPORATE FUND INVESTOR SHARES 		Fixed Income 5%
VUSTX
VANGUARD LONG-TERM TREASURY FUND INVESTOR SHARES 		Fixed Income 5%
VISGX
VANGUARD SMALL-CAP GROWTH INDEX FUND INVESTOR SHARES 		US Equity 5%
VISVX
VANGUARD SMALL-CAP VALUE INDEX FUND INVESTOR SHARES 		US Equity 5%
VTSMX
VANGUARD TOTAL STOCK MARKET INDEX FUND INVESTOR SHARES 		US Equity 5%


Historical Performance


The return data shown below all delayed by 3 months. Their latest dates are all the same: 01/31/2025.
AR inception is since 07/17/2001.
Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
Ted Aronson Family Taxable Portfolio 2.44% 13.87% 4.77% 7.70% 7.62% 8.45% 7.84% 8.33%
VFINX (VANGUARD 500 INDEX FUND INVESTOR SHARES) 2.77% 26.20% 11.74% 15.10% 13.50% 14.13% 10.53% 9.22%
VSMGX (VANGUARD LIFESTRATEGY MODERATE GROWTH FUND INVESTOR SHARES) 2.11% 12.75% 4.27% 6.43% 6.23% 7.14% 6.01% 6.03%

Ted Aronson Family Taxable Portfolio Return Calculator

Calculate Performance

Start date (MM/dd/yyyy)

End date   (MM/dd/yyyy)

Calculators


Dollar Cost Average Calculator for Ted Aronson Family Taxable Portfolio

Starting Amount:
Investment Length (years):
Investment Symbol:
Regular Investment Amount ($):
DCA Frequency:
Share on

Retirement Spending Calculator for Ted Aronson Family Taxable Portfolio

Starting Amount:
Period (Years):
Investment Portfolio or Fund:
Withdrawal Rate (%) :
%
Withdrawal Frequency:
Share on

Rolling Returns


From 07/17/2001 to 04/16/2025, the worst annualized return of 3-year rolling returns for Ted Aronson Family Taxable Portfolio is -10.78%.

From 07/17/2001 to 04/16/2025, the worst annualized return of 5-year rolling returns for Ted Aronson Family Taxable Portfolio is -1.08%.

From 07/17/2001 to 04/16/2025, the worst annualized return of 10-year rolling returns for Ted Aronson Family Taxable Portfolio is 5.03%.


Maximum Drawdown

Ted Aronson Family Taxable Portfolio Maximum Drawdown