Bogleheads 3 Fund Portfolio Review and M1 Finance ETF Pie

What is the Bogleheads 3 Fund Portfolio?

  • 60% U.S. Stocks
  • 20% International Stocks
  • 20% U.S. Bonds

Why Index Funds?

  • The evidence has shown that even most professional investors can’t pick winners that beat the market over 10+ years, much less the average retail investor like you and me.
  • On the 50th birthday of the S&P 500 index, only 86 of the original 500 companies remained.
  • Blindfolded monkeys randomly throwing darts for stock picks have beaten top hedge fund managers not just once, but consistently.

Why International Stocks?

Bogleheads 3 Fund Portfolio Benefits

  • Diversification. Over 10,000 world-wide securities.
  • Contains every style and cap-size.
  • Very low cost.
  • Very tax-efficient.
  • No manager risk.
  • No style drift.
  • No overlap.
  • Low turnover.
  • Avoids “front running.”
  • Easy to rebalance.
  • Never under-performs the market (less worry).
  • Likely to outperform most investors.
  • Simplicity.

Bogleheads 3 Fund Portfolio — Choosing Assets

U.S. Stocks

International Stocks

Bonds

Why No International Bonds?

Bogleheads 3 Fund Portfolio Portfolio Historical Performance

Source: PortfolioVisualizer.com
Source: PortfolioVisualizer.com

Bogleheads 3 Fund Portfolio ETF Pies for M1 Finance

Traditional — Total Bond Market

  • VTI — 60%
  • VXUS — 20%
  • BND — 20%

Intermediate Term Treasury Bonds

  • VTI — 60%
  • VXUS — 20%
  • VGIT — 20%

Long Term Treasury Bonds

  • VTI — 60%
  • VXUS — 20%
  • VGLT — 20%

--

--

--

Analytical and entrepreneurial-minded data nerd, usability enthusiast, Boglehead, and Oxford comma advocate. https://www.OptimizedPortfolio.com

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Why I don’t use credit cards. The harsh truth about what really happens when you sign up.

THE LOSS

Retirement ain’t what it used to be

Now you can buy annuities online like clothes and cars and with the same caveats

6 Things Every First-Time Homebuyer Should Consider

Acorns: My Favorite App For Saving Money

Payday loans question?

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
John Tyler Williamson

John Tyler Williamson

Analytical and entrepreneurial-minded data nerd, usability enthusiast, Boglehead, and Oxford comma advocate. https://www.OptimizedPortfolio.com

More from Medium

CS371p Spring 2022: Manasi Ramadurgum — Week 12

CS373 Spring 2022: Tiago Grimaldi Rossi

DEVELOPMENT SIMULATION GAME # 1

Debouncing vs Throttling