JAAA - How To Build A Portfolio With 4 ETFs: Part IV

2024-07-23 07:45:31 ET

Summary

• Welcome back to ‘How To Build A Portfolio With Four ETFs’.
• With rates set to decline soon, we explore opportunities to put your cash to work.
• A cash management strategy can replace a traditional cash allocation like a money market fund with better opportunities like SGOV, MINT, JAAA, and TLT.
• We propose a simple allocation of just four funds to create a high-performing cash portfolio, exploring yield, expenses, and long-term performance.

Welcome back to ‘How To Build A Portfolio With Four ETFs’, a monthly series that builds a thematic portfolio with just four exchange-traded funds. Each month, we build a Four ETF Portfolio based on a macroeconomic, sector, or investor theme. We will explore opportunities to add value to traditional investing strategies with minimal added complexity along the way. Please leave a comment with topics you would like to see covered in the future.

Theme: Your Cash Is Trash

In 2020, Ray Dalio coined the phrase “cash is trash” when inflation turned upward and interest rates bottomed out. Dalio’s thought process was that cash offered zero return, which meant taxation by inflation was going to inevitably deliver a negative real return....

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