The 1-Fund Strategy
The heart of VTI & Chill. One fund, the entire US stock market, zero complexity. Buy it, hold it, live your life. JL Collins built an entire investing philosophy around this single idea — and the data backs him up. Over the last two decades, owning the total market has beaten the vast majority of actively managed funds.
| Asset Class | ETF | Allocation | Expense |
|---|---|---|---|
| US Total Stock Market | VTI | 100% | 0.03% |
This is where everyone starts. The 1-fund approach is the foundation of everything we teach. Once you're comfortable here, the "Better" and "Best" tiers add factor tilts for potentially higher returns — but this portfolio alone puts you ahead of most investors.
The 4-Fund Strategy
Four funds covering the key US equity factors. Delivers returns nearly identical to the 10-fund portfolio with simpler management.
| Asset Class | ETF | Allocation | Expense |
|---|---|---|---|
| US Large-Cap Blend | AVUS | 25% | 0.15% |
| US Small-Cap Blend | AVSC | 25% | 0.25% |
| US Large-Cap Value | AVLV | 25% | 0.15% |
| US Small-Cap Value | AVUV | 25% | 0.25% |
The 10-Fund Ultimate Buy & Hold
Paul Merriman's flagship portfolio. 10 equity asset classes covering ~12,000 companies globally. Historically outperforms S&P 500 with similar or lower volatility.
| Asset Class | ETF | Allocation | Expense |
|---|---|---|---|
| US Large-Cap Blend | AVUS | 14% | 0.15% |
| US Large-Cap Value | AVLV | 14% | 0.15% |
| US Small-Cap Blend | AVSC | 14% | 0.25% |
| US Small-Cap Value | AVUV | 14% | 0.25% |
| US REITs | VNQ | 14% | 0.12% |
| Int'l Large-Cap Blend | AVDE | 6% | 0.23% |
| Int'l Large-Cap Value | DFIV | 6% | 0.27% |
| Int'l Small-Cap Blend | AVDS | 6% | 0.36% |
| Int'l Small-Cap Value | AVDV | 6% | 0.36% |
| Emerging Markets | AVEM | 6% | 0.33% |
The Fine Tuning Table
Each added asset class incrementally improves risk-adjusted returns. Small-cap value is the primary return driver.
| Portfolio | Funds | CAGR | $10K over 55yr | Sharpe |
|---|---|---|---|---|
| VTI (Total Market) | 1 | 10.0% | $3.0M | 0.52 |
| + LC Value, SC Blend | 4 | 12.5% | $7.8M | 0.60 |
| Full 10-Fund | 10 | 13.2% | $10.4M | 0.63 |