investing / investing basics

A Simple Global Market Portfolio

A Simple Global Market Portfolio consists of “all stocks, bonds and other assets that are readily tradeable. This is the mix of investments that’s owned by all investors worldwide and reflects our collective judgment of what different securities are worth” writes Jonathan Clements in the Humble Dollar weekly email. Sign up at https://humbledollar.com

You can build this portfolio with “five exchange-traded index funds: 40% Vanguard Total World Stock ETF (symbol: VT), 21% Vanguard Total Bond Market ETF (BND), 33% Vanguard Total International Bond ETF (BNDX), 5% iShares Global REIT ETF (REET) and 1% Invesco DB Commodity Index Tracking Fund (DBC). The Vanguard Total World Stock ETF currently has 57% in U.S. stocks and 43% in international markets.”

According to Clements, “it’s the ultimate “neutral” investment mix and hence should be our starting point in designing a portfolio.” Stray from this basic mix for  the following reasons: “time horizon, job security and stomach for market turbulence.”
Source: Financial Planning for Women