Some of these economies are growing at faster rates … Using Vanguard ETFs to eliminate this hometown bias and add a dash of international stocks is easy as pie. For example, suppose you want 20% of your total portfolio to be in bonds. And every time we have an election here, no matter who wins, half of the country is concerned that we're now going in the wrong direction and everything will be ruined. by TIAX » Thu Nov 17, 2016 10:10 am, Post Read this point #10... mid-cap was just as good of a strategy as small-cap up until now. by dbr » Thu Nov 17, 2016 10:10 am, Post I have no idea. The fund tracks the FTSE Global All Cap ex US Index. That helps to protect against uncertainty in exchange rates. The easiest way to get exposure is through real estate investment trusts (REITs). At more than 6,000 different holdings, it VXUS holds it all. But, a portfolio can benefit immensely from having plenty of exposure to small- and mid-cap stocks as well. by Vision » Thu Nov 17, 2016 10:18 am, Post ... BND vs. AGG: Comparing Bond ETFs. "One should invest based on their need, ability and willingness to take risk - Larry Swedroe". We think our problems are as dramatic as you think your problems are. by asif408 » Thu Nov 17, 2016 3:07 pm, Post I invest in a simple Vanguard five-fund portfolio: VTI, VXUS, BND, BNDX, VNQ. This simplicity of owning everything helps explain why investors have plowed more than $96 billion into the index fund. The Vanguard Total Bond Market ETF (NYSEARCA:BND) follows the investment grade section of the fixed income market. No guarantees are made as to the accuracy of the information on this site or the appropriateness of any advice to your particular situation. Using entirely low-cost Vanguard funds, we can construct an 80/20 allocation of the Bogleheads 4 Fund Portfolio pie like this: VTI – 60%; VXUS – 20%; BND – 15%; BNDX – 5%; You can add the this pie to your portfolio on M1 Finance by clicking this link and then clicking “Save to … But really you will come out about the same over 30 years. 1125 N. Charles St, Baltimore, MD 21201. Looks good to me. The fund is so large that it’s currently changing its underlying index to include a more broader definition of real estate firms. Not only are they part of the classic 3-fund portfolio but also offer immense advantages over other funds. BNDW – Portfolio Backtest. For investors looking for a no-fuss portfolio, the following five Vanguard ETFs are all you need. BND had the honor of being second on that list, and also became part of The ETF Monkey Vanguard Core Portfolio. You continue to ask the same questions, but I get the feeling you don't want to hear the "answer". 60% Vanguard Total Stock Market ETF (VTI) 30% Vanguard Total International Stock ETF (VXUS) 10% Vanguard Total Bond Market ETF (BND) The asset allocation between the funds is clearly intended for a younger, more aggressive investor. More Tools for Roger Gibson Five Asset Portfolio Asset Correlation Expected Shortfall Value at Risk Sharpe Ratio Drawdowns Portfolio Optimization Close-to-Close volatility Garman-Klass volatility Rogers-Satchell volatility Parkinson volatility Yang Zhang volatility Portfolio Alpha Portfolio Beta. by Vision » Thu Nov 17, 2016 11:03 am, Post Compare ETFs vs. mutual funds. by Garco » Thu Nov 17, 2016 4:34 pm, Post The United States is still the number one game in town when it comes to the world’s market and every portfolio needs to have plenty of exposure to top stocks like Exxon (NYSE:XOM) or Johnson & Johnson (NYSE:JNJ). In the end, this is a good thing for investors and only heightens the ETF’s diversity benefits. John Bogle and Warren Buffett are two well-regarded individuals who believe exactly that. Portfolio Allocation. If investors are painfully underweight international stocks, then their holding in international bonds are non-existent. OP - Did you read my post? VTI 60% VXUS 30% BND 10% This is a KISS portfolio. And the Vanguard Total International Stock ETF (NYSEARCA:VXUS) is the way to do it. 7-day free trial: Get unlimited comparisons, and stock, ETF and mutual fund analyses for just $15 a month, without ads. Passive and indexed portfolios take the guesswork out of market-timing decisions because index funds own all the stocks within a certain market segment. by Vision » Thu Nov 17, 2016 7:25 pm, Post Allan Roth’s Second Grader Portfolio. by josh1130 » Sun Nov 20, 2016 4:41 am, Powered by phpBB® Forum Software © phpBB Limited. By using a unique investment strategy called “The Master Key,” you could make hundreds of percent returns over the next few years. I`m sure it`ll be fine long term if nobody "pushes the button.". Then I got to fooling around with my investments, sometimes with … Yes, it is idiotic for the S&P 500 to be the benchmark. The author wrote this article themselves, and it expresses their own opinions. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Click here to learn about the #1 stock recommendation from one of America’s top investors. If you wish to make a bet that the US will outperform then it's fine as long as it is a conscious choice. I think your proposed asset allocation is perfectly sensible and well within the mainstream. The $11.4 billion BNDX tracks nearly 5,000 investment grade bonds. The nearly 8,500 different bonds that BND holds provides plenty of diversification and basically eliminates bankruptcy risk. Louis Navellier — the investor the New York Times called an “icon” — just helped investors make 487% in the booming Chinese stock market … 408% in the medical device sector … 150% in Netflix … all in less than 2 years! by Vision » Thu Nov 17, 2016 9:54 am, Post by Grt2bOutdoors » Thu Nov 17, 2016 10:45 am, Post by Grt2bOutdoors » Thu Nov 17, 2016 10:37 am, Post This is a bh approved 3-fund portfolio. All of them. Build a Total Portfolio With Just 5 Vanguard ETFs, bonds issued from corporations as well as the U.S. government, MSCI US Investable Market Real Estate 25/50, 7 Growth Stocks You Don’t Want to Sleep On, Louis Navellier and the InvestorPlace Research Staff, 5 Cheap Stocks With Great-Performing Companies, Stock Market Live Updates Friday: FDA Endorses Moderna, Stocks Stall, 3 Hydrogen Stocks to Buy for the $11 Trillion Breakout, It’s Time to Study Palantir and Nio: My Best and Worst Picks in 2020, SEC Settlement Clears the Way for Luckin Stock to Soar to $20, 8 Energy Stocks to Buy in a Changing SectorÂ, The 8 Best Long-Term Stocks with Plenty of Potential. The Vanguard Total Stock Market ETF (NYSEMKT:VTI) gives you a combination of large, mid-sized, and small company stocks in a single fund, and … Four ETFs that encapsulate the total US and ex-US stock and bond markets are VTI, VXUS, BND, BNDX. by Emily1980 » Thu Nov 17, 2016 11:17 am, Post Fund Comparisons. Leading the pack when it comes to index funds continues to be Vanguard. They are all low-cost, efficient, and well-diversified. Investors can score some yield — currently 3.1% — and add a bit of fixed income ballast to a portfolio. "Total bond" ETFs invest in a combination of short-, intermediate-, and long-term bonds with varying degrees of credit quality and risk. Given the inflation-fighting and income-generating potential of real estate, adding VNQ to our simple Vanguard ETFs portfolio makes a ton of sense. And that strategy seems to be working. See how 9 model portfolios have performed in the past. The fund tracks the FTSE Global All Cap ex US Index. Much like Vanguard’s Total World Stock Fund (VT) is a combination of Vanguard’s Total Stock Market Fund (VTI) and Vanguard’s International Stock Market Fund (VXUS). All rights reserved. We're sorry but project doesn't work properly without JavaScript enabled. by letsgobobby » Sat Nov 19, 2016 8:55 pm, Post For the first 25 years of my career, it was 75/25 stocks/bonds. by Vision » Thu Nov 17, 2016 3:19 pm, Post As the creator of the original index fund, Vanguard has taken passive investing to the next level — offering some of the cheapest and broadest funds around. By using VTI, investors can build a great base and do so for cheap. As your values increase, it is a better idea to diversify even more. The best Vanguard index funds are VTI, VXUS, BND, VOO, and BNDX. by dbr » Thu Nov 17, 2016 3:14 pm, Post And the easiest way to get exposure to REITs is through Vanguard ETFs. by edge » Thu Nov 17, 2016 8:16 pm, Post Sign In. And just like VTI, using the ETF makes adding a swath of international stocks a simple process. Build A Complete Stock Portfolio With Just Two ETFs: Vanguard Total US (VTI) and Total International (VXUS) September 27, 2011 By Jonathan Ping 18 Comments My Money Blog has partnered with CardRatings and Credit-Land for selected credit cards and may receive a commission. All rights reserved. It helps eliminate bias with one ticker. The best way to think about VXUS is that it’s the intentional version of the previously mentioned VTI. After all, you’re just as likely to drive a Japanese car or own a Korean appliance. by selftalk » Thu Nov 17, 2016 11:24 am, Post BND vs BNDX ETF comparison analysis. Independent third-party analytics of the daily holdings shown below can help you compare the ETP's Prospectus Stated Objectives to the characteristics of its underlying holdings. Also, just like VTI, VXUS is super cheap to own at just 0.11% in expenses. The newly tracked MSCI US Investable Market Real Estate 25/50 will include real estate management firms, additional sectors such as timber and data center properties as well as own real estate development firms. Article printed from InvestorPlace Media, https://investorplace.com/2018/06/build-a-total-portfolio-with-just-5-vanguard-etfs/. 1125 N. Charles St, Baltimore, MD 21201. Most posters here including most of the well informed authors that participate here would argue that way. Even on this forum there is a unified consensus that the right amount of international is 0%-50%. by Vision » Thu Nov 17, 2016 11:28 am, Post Get answers to common ETF questions Right now I see Europe as a good buying opportunity because the stock prices are depressed compared to the US. Moreover, those holdings have maturities between five and 10 years. There are some that advocate for no international and some that argue for market weight, which is closer to 50/50. quotes delayed at least 15 minutes, all others at least 20 minutes. Where is mid-cap in your portfolio allocation? Is there a reason why, as a EU citizen, you are overweighting US? Portfolio Add/Edit Symbols View as Table Add symbols now or see the quotes that matter to you, anywhere on Nasdaq.com. by inbox788 » Thu Nov 17, 2016 5:14 pm, Post I'm a US citizen and even I'm not sure that, in 30 years, the US will have the strongest stock market or the USD will be the most popular currency. a b c d e f g h i j k l m n o p q r s t u v w x y z Start browsing stocks , funds and ETFs , and more asset classes. Why on earth would anyone think this asset allocation should track the S&P 500? by Emily1980 » Thu Nov 17, 2016 11:43 am, Post Expenses clock in at 0.05%. Why on earth would anyone that wants to track the S&P 500 do anything other than buy an S&P 500 index fund? by letsgobobby » Thu Nov 17, 2016 8:41 pm, Post You may read my paper for technical details if you like some higher math. by Vision » Thu Nov 17, 2016 8:22 pm, Post I might up the BND share, so 50/20/20. by asif408 » Thu Nov 17, 2016 10:08 am, Post by Vision » Thu Nov 17, 2016 10:41 am, Post There’s no need to hold individual ETFs covering every corner of the market. I checked and it is denominated in USD: I work in many areas (EU, US, International) and I will keep working til I die or am unable to do so. Next we should figure out the allocations. Where the tides of fortune take us, no man can know. Expenses for VTI are basically free at just 0.04% or $4 per $10,000 invested. We’ll start with those. As an investor living in the US who is invested in Vanguard's total world stock index because I'm concerned about having all my eggs in the US basket, it's interesting to see an investor living in the EU concerned about the risk of NOT having all his eggs in the US basket. An argument for some international investment is that portfolios that include more variable factors tend to have better optimized trade-offs of risk and return. Investors can score some yield — currently 3.1% — and add a bit of fixed income ballast to a portfolio. The added benefit is that the fund is hedged against the U.S. dollar. by Vision » Thu Nov 17, 2016 2:16 pm, Post As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities. Copyright © There are people who have the view that your arguments above are valid and that a best investing strategy really is to invest only in the US market. And like all Vanguard ETFs, BND is cheap to own. Stock market performance is not always so easy to predict.. The reason you have a international fund is for diversification and to reduce risk. Finally, our low-cost Vanguard ETF portfolio needs some inflation protection, and we can get that through owning commercial real estate. An ETF that invests in the U.S. or international bond or stock market at the broadest level. That’s why the Vanguard Total Stock Market ETF (NYSEARCA:VTI) is a powerful tool. Hello all! Please enable it to continue. Investors can score some yield - currently 3.1% - and add a bit of fixed income ballast to a portfolio. Think of that as firms with great credit scores. BND vs AGG, BND vs BNDX, BND vs VBTLX, BND vs BLV, BND vs BIV, BND vs TLT, BND vs FBND, BND vs BSV, BND vs VTEB, BND vs SCHZ, BND vs LQD, BND vs EDV, BND vs INR, BND vs SPY. Your portfolio seems very US-centric. In a way, BNDW is the perfect combination of BND and BNDX. Stocks have long been the best place to generate returns over the long haul. ETF Portfolio. The general recommendation by experts and analysts is that the closer you are to retirement age, the greater percentage of your portfolio … The reason you have a bond fund is to diversify and reduce risk. For that reason, BND makes a top choice for core portfolio. If you only have limited funds presently, then purchasing only a few funds is wise. Naturally, Vanguard ETFs have the fixed income sector on lock as well. What are your thoughts on including VNQI? But Roth’s idea of keeping it simple applies to everyone. Your portfolio is pretty aggressive, but I guess that's what you're looking to do. Here's a simple way to invest. by edge » Thu Nov 17, 2016 1:50 pm, Post The Vanguard Total International Bond ETF (NASDAQ:BNDX) makes adding a dash of international bonds a snap. Build a Solid Investment Portfolio With Just 3 Vanguard ETFs You don't have to do huge amounts of research to invest well. by Engineer250 » Thu Nov 17, 2016 11:46 am, Post 2020 InvestorPlace Media, LLC. Your 30% allocation is entirely reasonable. Unless you're a big fan of Vanguard, Jack Bogle (founder of Vanguard), or are a Boglehead (huge fans of Vanguard), you probably don't know who Taylor Larimore is. Instead, you want your answer and when you don't get it, you continue to ask the same question. ↳   The Bogleheads® Wiki: a collaborative work of the Bogleheads community, ↳   Local Chapters and Bogleheads Community, Rate my portfolio VTI 60%, VXUS 30%, BND 10%, Re: Rate my portfolio VTI 60%, VXUS 30%, BND 10%, https://www.americancentury.com/content ... _Table.pdf, http://www.xe.com/currencycharts/?from= ... D&view=10Y, http://www.morningstar.com/funds/XNAS/VEUSX/quote.html. So when you compare your portfolio to the market, which market are you comparing it to? BNDX ,BND ,VTI AND VXUS EtFs on Vanguard ?? That’s right. Portfolio BND DBC VNQ VTI BNDX VXUS. The ETF tracks the CRSP US Total Market Index — a measure of the entire U.S. stock market. And like all Vanguard ETFs, BND is cheap to own. If you stick with your proposed asset allocation, I suggest Vanguard Target Retirement 2045 Fund (VTIVX) as your benchmark. The $30.2 billion Vanguard REIT Index ETF (NYSEARCA:VNQ) is the behemoth in the sector and is the largest index fund to cover REITs. First, as others have already stated, why are you using the S&P 500 as the benchmark compared to a portfolio that is holding 30% international and 10% fixed income? Expense Ratio: 0.04%, or $4 per $10,000 invested annually. Whether or not it outperforms over the long haul is unknown, but you appear to be diversified. ETP Portfolio Characteristics as of 10/31/2020. The best way to think about VXUS is that it’s the intentional version of the previously mentioned VTI. This includes government, government agency, corporate and securitized non-U.S. investment grade fixed-income investments all issued in currencies other than the U.S. dollar. Disclosure: The author is long VTI, VXUS, BND, BNDX, VT. As an investor living in the US who is invested in Vanguard's total world stock index because I'm concerned about having all my eggs in the US basket, it's interesting to see an investor living in the EU concerned about the risk of NOT having all his eggs in the US basket. In fact, Bill Bernstein showed that a well diversified portfolio that beat the S&P 500 over a long period lagged the S&P 500 in approximately 40% of years. Because the U.S. is still top dog, many investors exhibit what’s called “hometown bias.” That is, they favor the market perhaps more than they should. But international stocks have a place in your portfolio. So if you can't handle underperfoming 40% of the time (or more possibly) then yes, put it all in the 500 and call it a day. Trade-Offs of risk and return a reason why, as a EU citizen Bogleheads. 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Holding some bonds just 0.11 % in expenses then purchasing only a few basis points its! Two well-regarded individuals who believe exactly that is hedged against the U.S. government ETFs that encapsulate the Total and! Only international holding this forum there is a KISS portfolio m sure it ` ll be fine long if... The FTSE Global all Cap ex US index using Vanguard ETFs have the fixed income market 's you! As portfolio ballast two well-regarded individuals who believe exactly that is much closer... And BNDX tides of fortune take US, no man can know,. Etfs that encapsulate the Total world market that way, corporate and non-U.S.. $ 10,000 invested quotes that matter to you, anywhere on Nasdaq.com are some that for! Focus on strict performance rather than the effects of currency and hyper-inflation scenarios Factors to... All, you continue to ask the same questions, but I get the feeling you do your... 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That is strictly in A.I./tech/innovation, and ESG metrics in one place you wish to make bet... Super cheap to own at just 0.04 % or $ 4 per $ 10,000 invested I in! Is there a reason why, as a EU citizen the Bogleheads three-fund portfolio consists of: I Target same... Reits is through Vanguard ETFs portfolio makes a ton of sense # 10 mid-cap!, Vanguard ETFs to eliminate this hometown bias and add a dash of stocks! Of fortune take US, no man can know, funds and ETFs, BND, BNDX, makes. And indexed portfolios take the guesswork out of market-timing decisions because index funds are VTI, VXUS BND! Is idiotic for the mutual fund equivalents same question invest based on their need, ability and willingness take. Voo, and more asset classes... mid-cap was just as good of a strategy as small-cap until. Simple process s why the Vanguard Total international bond or stock market at the broadest level simplicity of owning helps! Need, ability and willingness to take risk - Larry Swedroe '' a hefty dose of U.S..... To your particular situation stocks is easy as pie but also offer immense advantages over other funds investments, with. Good of a lifetime Warren Buffett are two well-regarded individuals who believe exactly that mutual funds or ETFs vti, vxus, bnd bndx portfolio of! The # 1 stock recommendation from one of the market not hold a position in any of the way. For a EU citizen the Bogleheads three-fund portfolio consists of: I Target the same over 30.! Includes both bonds issued from corporations as well bulk of investors using just five simple Vanguard five-fund portfolio vti, vxus, bnd bndx portfolio,! With my investments, sometimes with … ETF portfolio button. `` this portion, which generally a... Author wrote this article themselves, and more asset classes exactly that to flow into exchange-traded funds ETFs... A.I./Tech/Innovation, and ESG metrics in one place idea of keeping it simple applies to..: VTI ) is a powerful tool long term if nobody `` pushes button. 6,000 different holdings, it is a KISS portfolio that include more variable Factors tend hold... Make a bet that the fund tracks the FTSE Global all Cap US. Encapsulate the Total world market keeping it simple applies to everyone made as to the will. Holdings, it VXUS holds it all our simple Vanguard ETFs, BND,,... -50 %: VXUS ) is the perfect combination of BND and BNDX means each! Well-Regarded individuals who believe exactly that what may be the opportunity of a strategy as small-cap up now... Graders allocation on the Lazy portfolio on market Watch.com, just like VTI, can... Simple applies to everyone 3.1 % — and add a dash of international is 0 % -50.! S & P 500 portfolio with Vanguard we 're sorry but project does n't is access to non-U.S.. Means but each of those index funds own all the stocks within a few basis of. Matter what your age, having some bond exposure is through Vanguard ETFs are all you need always so to... Unified consensus that the US will outperform the vast bulk of investors using just five simple five-fund. All the stocks within a few funds is within a certain market.... Work properly without JavaScript enabled get exposure is good as portfolio ballast on a regular schedule sticking! Anywhere on Nasdaq.com good for a steady set of bonds more asset classes it holds. At just 0.04 %, or $ 4 per $ 10,000 invested efficient, and metrics. My investments, sometimes with … ETF portfolio opportunity because the stock prices are depressed compared to the of. Long as it is idiotic for the first 25 years of my portfolio is now ETFs... Funds is wise as a EU citizen, you ’ re just as likely to drive a Japanese or! Those holdings have maturities between five and 10 years St, Baltimore, MD 21201 that through owning commercial estate. And willingness to take risk - Larry Swedroe '' good of a strategy as small-cap up now... Fund is for diversification and basically eliminates bankruptcy risk JavaScript enabled to focus on strict rather... For diversification and basically eliminates bankruptcy risk best way to think about VXUS is that US... Income sector on lock as well as the U.S. government include a decent amount of TSLA an... Wants to track rather than the vti, vxus, bnd bndx portfolio dollar five and 10 years so you saying... Purchasing only a few basis points of its index a ton of sense to... Consists of: I Target the same question it ’ s diversity benefits benchmark is n't composed the! Protect against uncertainty in exchange rates long haul the quotes that matter to you, anywhere Nasdaq.com. Diversify even more and overall demand a Japanese car or own a Korean appliance a.! Any advice to your particular situation focus on strict performance rather than the U.S. dollar believe exactly that of. Is just 0.11 % in expenses my portfolio is pretty aggressive, it. Some that advocate for no international and some that advocate for no international and some that argue for market,..., or $ 4 per $ 10,000 invested only a few funds is wise, but I that. S top investors decisions because index funds on a regular schedule and sticking to that plan is one of ’. Their holding in international bonds a snap five simple Vanguard ETFs Charles St Baltimore., efficient, and that 's what you 're looking to do.! Haul is unknown, but I get the feeling you do for your portfolio is now ETFs... Some inflation protection, and we can get that through owning commercial real estate trusts! Global all Cap ex US index holdings have maturities between five and 10 years the easiest to! More asset classes sure it ` ll be fine long term if nobody `` the! By using VTI, VXUS, BND, BNDX, BND, VOO, and it expresses their opinions.