The Cockroach Portfolio: A Crisis-Resistant Investment Strategy?

Risk is just part of investing – or is it? The so-called cockroach portfolio is aimed at investors who worry about crises or have a difficult time dealing with high volatility. In this guide, moneyland.ch answers the most important questions about this strategy.

What is a cockroach portfolio?

The cockroach portfolio is an investment portfolio model that is meant to be resistant to all possible negative market scenarios. The goal of this strategy is to combine a return – higher than that of savings accounts – with a high level of stability. The model is largely promoted by British financial expert Dylan Grice. 

What does a cockroach portfolio include?

While there are multiple variations, a standard cockroach portfolio is made up of four components:

• 25 percent stocks: The stock component should ideally be widely diversified across numerous companies – using an exchange-traded fund (ETF) that replicates a global stock index, for example.
• 25 percent government bonds: These government bonds should be issued by countries with strong creditworthiness ratings, such as Switzerland or Germany. The bond component too should, ideally, be broadly spread over a wide selection of bonds. Bond ETFs provide a simple solution.
• 25 percent gold: You can hold gold as physical bullion, or use a gold ETF.
• 25 percent cash: There are various ways to hold this component. You can keep the money in a private account or savings account, invest it in low-risk money market funds, or keep physical banknotes. If you use a savings account, make sure to pay attention to interest rates and limitations on withdrawals.

The four quarters of the portfolio are meant to balance each other out. The stock component can potentially yield high returns, but also carries more risk of loss – at least in the short term. The government bond component adds a more stable element. The gold component is meant to provide protection against crises. The cash component provides liquidity – but keeping a separate emergency fund is still advisable.

Are there any cockroach portfolio ETFs?

As per April 2026, there is no single ETF with which you can invest in a full cockroach portfolio. But you can create a cockroach portfolio using just a combination of well-diversified stock, government bond, gold, and money market ETFs.

What are the advantages of the cockroach strategy?

The primary advantage of the cockroach portfolio is that its diversification over multiple asset classes. Because all of the components are the same size, you are not exposed to any major concentration risk.

The strategy balances security with potential returns. In times of crisis it tends to be more robust than pure stock portfolios. The chances of all four asset classes losing value at the same time is almost null – largely because of the cash component. The prices of gold, stocks, and bonds often develop opposite directions, though there is no guarantee of this.

What are the risks and disadvantages of the cockroach strategy?

Cash makes up a relatively large portion of the portfolio. While that does reduce the risk of loss, it also reduces the potential gains. The cash component can negatively impact performance, especially over long terms. Bank account balances, money market funds, and physical cash yield very low returns, or none at all. Bonds too have performed very poorly compared to stocks in recent history, though that scenario could hypothetically change in the future.

In order to maintain the balance between the different components, you may have to rebalance your portfolio frequently. That requires some effort, and normally generates transaction cots as well.

Choose an affordable stockbroker

In addition to the makeup of your portfolio, the success or failure of an investment is also partly determined by which stockbroker you use. High brokerage and custody fees will have a negative impact on your returns. Taking time to compare stockbrokers on moneyland.ch is worth it.

Tip: If you are satisfied with a limited selection of securities to choose from, the investment services from neobanks can be an affordable alternative. For small investments, in particular, neobanks are often the most affordable solution.

For the cash component, it is advisable to compare private accounts and savings accounts. Even small differences in interest can strongly impact your returns over the long term.

How profitable is a cockroach portfolio?

There is no blanket answer to the question of how well cockroach portfolios perform. There are numerous variables that could affect returns, including the exact makeup of the specific cockroach portfolio and possible investment fees. What is more, it is never possible to accurately predict how different markets will develop in the future. Past performance is never a sure indicator of future performance. 

Over the past five years, the cockroach portfolio performed better than both a 60-40 portfolio and a pure stock portfolio (based on a global stock index). But a 10-year term, the other two brought higher returns.

Note: This article is provided for information purposes only, and should not be considered as investment advice. The publisher does not accept any liability in connection with this publication.

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