VTI - How To Build A Portfolio With Four ETFs: Part II
2024-03-27 22:45:11 ET
Summary
- We revisit the concept of a "Four ETF Portfolio."
- We focus on young investors, who should prioritize absolute returns through low-cost, tax-efficient index funds.
- The selection includes index funds from four different managers with expense ratios under 1.00%.
I recently published an article called “ How To Build A Portfolio With Four ETFs .” The idea stemmed from a discussion about the necessities and requirements of retirement planning. The thesis behind the article was simple. A portfolio of four exchange traded funds can fulfill the basic needs of a retired investor.
The final portfolio held the following four ETFs with a goal of generating income that grows from diverse sources:
- Schwab U.S. Dividend Equity ETF ( SCHD ) – 40%
- iShares Core U.S. REIT ETF ( USRT ) – 30%
- iShares 0-3 Month Treasury Bond ETF ( SGOV ) – 20%
- VanEck BDC Income ETF ( BIZD ) – 10%