Oct 30 2009

A Sample ETF Portfolio for Vanguard Fans.

The Vanguard family of funds has many fans in the individual investor community. With their dedication to low expense fees, it’s no surprise. Much has been made of the drag on performance of high fees, and there is a growing investment community that not only shuns investments with high fees, but rates fees and expenses high on the list of things to consider when choosing an investment.

For those of you who count yourselves among this lot of fans, here is a sample ETF portfolio that is entirely Vanguard funds. The average annual expense ratio of this portfolio is just 0.13%! It’s geared toward the average risk tolerance with a 65% stock – 35% bond split.

  • 35% Vanguard Total Bond Market (BND)
  • 20% Vanguard FTSE All-World ex-US (VEU)
  • 20% Vanguard Large Cap (VV)
  • 15% Vanguard Small Cap (VB)
  • 5% Vanguard Emerging Markets Stock (VWO)
  • 5% Vanguard REIT (VNQ)

BND

Seeks to track the performance of a broad, market-weighted bond index. The fund invests by sampling the index.
EXPENSE RATIO:0.14%
YIELD:4.44%

VEU

Seeks to track the performance of the FTSE All-World ex-US Bond Index (foreign bonds).
EXPENSE RATIO:0.20%
YIELD:1.83%

VV

This fund employs a passive management investment approach designed to track the performance of the MSCI US Prime Market 750 index, a broadly diversified index of the stocks of predominantly large U.S. companies.
EXPENSE RATIO:0.07%
YIELD:2.00%

VB

This fund employs a passive management investment approach designed to track the performance of the MSCI US Small Cap 1750 index, a broadly diversified index of the stocks of smaller U.S. companies.
EXPENSE RATIO: 0.10%
YIELD:1.64%

VWO

This fund employs a passively managed investment approach by investing all or substantially all of assets in a representative sample of the common stocks included in the MSCI Emerging Markets index.
EXPENSE RATIO: 0.20%
YIELD:3.07%

VNQ

The Vanguard REIT ETF tracks the Morgan Stanley Capital International (MSCI) US REIT Index.
EXPENSE RATIO:0.11%
YIELD:5.58%


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