Jul 16 2009

The simple 7 investment portfolio.

Looking for an easy, diversified portfolio of stock funds that will grow your money over time, but won’t take over your life with demands on your time? ladies, gentlemen and undeclared’s, I present the simple 7 portfolio..

Each recommendation is either an ETF, or a no-load mutual fund. Some people prefer mutual funds, and others ETFs, but there is little difference here. Most are also index tracking funds, so they are relatively low maintenance – for the set it and forget it, long term buy and hold investor. Most expense ratios are under 1%

The Simple 7 Portfolio.

1. A blue-chip U.S.-stock fund.

  • iShares S&P 500 Index (IVV )
  • Selected American Shares (SLASX)
  • Fidelity Spartan 500 Index (FSMKX)

2. A blue-chip foreign-stock fund.

  • Vanguard Total International Stock Index (VGTSX )
  • Vanguard FTSE All World Ex-U.S. ETF (VEU)
  • Dodge & Cox Intl. Stock (DODFX ) .

3. A small-company fund.

  • Vanguard Small-Cap ETF (VB ).
  • T. Rowe Price New Horizons (PRNHX)
  • Vanguard Small-Cap Index (NAESX)

4. A value fund.

  • iShares S&P 500 Value Index (IVE)
  • Vanguard Value Index (VIVAX)
  • T. Rowe Price Equity Income (PRFDX)

5. A high-quality bond fund.

  • Vanguard Total Bond Market ETF (BND)
  • Vanguard Total Bond Market Index (VBMFX)

6. An inflation-protected bond fund.

  • Vanguard Inflation-Protected Securities Fund (VIPSX)
  • T. Rowe Price Infl.-Protected Bond (PRIPX)
  • iShares Lehman TIPS Bond (TIP)


7. A money-market fund.

  • Fidelity Cash Reserves (FDRXX)
  • Vanguard Prime Money Market (VMMXX)
  • Schwab Value Advantage Money (SWVXX)

I leave the actual asset allocation to you, since that will depend on your time horizon, risk tolerance and so forth.


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One Response to “The simple 7 investment portfolio.”

  1. [...] these reasons and more, you’re 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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