Some experts are pushing a simpler approach to investing to cut through the morass of fund types available and avoid emotional decision-making, WSJ
's Anna Prior writes. This approach would mean using three low-cost mutual funds or ETFs.
If you're a Boglehead, that could mean a U.S. focused Vanguard[profile] Total Stock Market Index Fund
, Vanguard Total International Stock Index
and Canguard Total Bond
index. A 40 percent U.S. stocks, 20 percent international stocks and 40 percent bonds of those funds returned 7.14 percent a year over the last decade, Prior wrote.
The WSJ didn't neglect BlackRock[profile]
, suggesting a combination of iShares Core S&P Total U.S. Stock Market
, iShares Core MSCI Total International Stock
and iShares Core Total U.S. Bond Market
. For the portfolio with exposure to alternative strategies or one that isn't dominated by stocks or bonds, experts suggest using a global stock fund and a global diversified bond fund and saving a third portion for an alternative strategy or commodities. USA Mutuals[profile] GS Connect S&P GSCI Enhanced Commodity Total Return Strategy
and Pimco[profile] Commodity Real Return Strategy
are options, Prior wrote.
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