Jul 23 2009

The One-Minute Portfolio.

Here’s the ultimate in super-simple investment portfolios, for those who don’t have the time or inclination to pick and monitor individual stocks.

The One-Minute Portfolio.

The One-Minute Portfolio is comprised of just 3 asset allocations: Domestic Stocks, Foreign Stocks and Bonds. Here’s a recommendation for each category:

1. Buy America – The Whole Darn Thing!

Perhaps the cheapest and easiest way to own the entire U.S. Stock market is through the Vanguard Total Stock Market (VTSMX) mutual fund, or Vanguard Total Stock Market ETF (VTI). Both capture all market caps from small to large, growth to value and all sectors – and they have a low expense ratio: 0.16% and 0.07% respectively.

2. Going Abroad.

Here is a mutual fund and an ETF that will let you own the rest of the world, from emerging markets to the more mature European markets. Vanguard Total International Stock Market (VGTSX) Fund or Vanguard FTSE All-World ex-US ETF (VEU). Expense ratios are 0.30% and 0.20% respectively.

3. Bonds.

Bonds often give ballast to your portfolio during time when stocks are tanking, with the rare exceptions (think 2008). The biggest problem most investors have when buying bonds is deciding on what maturity to buy – short, intermediate or long term? You don’t have to pick just one. Here’s a super simple way to own the bond market – all of it!

Vanguard Total Bond Market (VBMFX) fund, iShares Lehman Aggregate Bond
(AGG) ETF. There is the Vanguard Total Bond Market ETF (BND http://quote.morningstar.com/ETFQuote.html?ticker=BND), but it’s less than a year old. The expense ratios are: 0.20%, 0.20%, and 0.10% respectively.

As with any portfolio, you’ll have to decide what percentage each category should be in your portfolio, based on your target time and risk tolerance.


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One Response to “The One-Minute Portfolio.”

  1. [...] probably better off sticking to the simpler approach of The Simple 7 or the super simple One Minute Portfolio. addthis_url = [...]

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