Difference between revisions of "Two-fund portfolio"
m (→Global two-fund portfolios: added text/link) |
m (internal wiki links) |
||
| Line 1: | Line 1: | ||
| − | A '''two-fund portfolio''' is often used by investors seeking a simple asset allocation portfolio. The portfolio consists of one equity index fund and one fixed income fund. The fund selections can vary depending on asset class (global equity or domestic equity; bond type), and asset type | + | A '''two-fund portfolio''' is often used by investors seeking a simple asset allocation portfolio. The portfolio consists of one equity [[index fund]] and one fixed income fund. The fund selections can vary depending on asset class (global equity or domestic equity; bond type), and asset type [[Mutual fund|mutual fund]], [[exchange-traded fund]], [[Collective investment trust|collective investment trust]] |
==Global two-fund portfolios== | ==Global two-fund portfolios== | ||
| Line 6: | Line 6: | ||
* A US intermediate term bond index fund/ETF | * A US intermediate term bond index fund/ETF | ||
| − | Ferri suggests a US total market bond index fund/ETF for the fixed income selection. However, investors can substitute a global bond index fund/ETF, a US intermediate-term bond index fund/ETF, a US intermediate-term treasury bond index fund/ETF, or a US municipal bond index fund/ETF for the fixed income allocation. Investors may also find that employer-provided retirement plans will use | + | Ferri suggests a US total market bond index fund/ETF for the fixed income selection. However, investors can substitute a global bond index fund/ETF, a US intermediate-term bond index fund/ETF, a US intermediate-term treasury bond index fund/ETF, or a US municipal bond index fund/ETF for the fixed income allocation. Investors may also find that employer-provided retirement plans will use collective investment trusts as investment vehicles. |
The Ferri two-fund portfolio can be adjusted to reflect any stock/bond allocation. The charts below reflect different asset allocations. | The Ferri two-fund portfolio can be adjusted to reflect any stock/bond allocation. The charts below reflect different asset allocations. | ||
Revision as of 14:19, 29 November 2019
A two-fund portfolio is often used by investors seeking a simple asset allocation portfolio. The portfolio consists of one equity index fund and one fixed income fund. The fund selections can vary depending on asset class (global equity or domestic equity; bond type), and asset type mutual fund, exchange-traded fund, collective investment trust
Global two-fund portfolios
Rick Ferri has proposed a two-fund portfolio consisting of the following asset classes:
- A global stock market index fund/ETF
- A US intermediate term bond index fund/ETF
Ferri suggests a US total market bond index fund/ETF for the fixed income selection. However, investors can substitute a global bond index fund/ETF, a US intermediate-term bond index fund/ETF, a US intermediate-term treasury bond index fund/ETF, or a US municipal bond index fund/ETF for the fixed income allocation. Investors may also find that employer-provided retirement plans will use collective investment trusts as investment vehicles.
The Ferri two-fund portfolio can be adjusted to reflect any stock/bond allocation. The charts below reflect different asset allocations.
82/20 allocation
60/40 allocation
40/60 allocation
20/80 allocation
US only two-fund portfolios
Both John Bogle and Warren Buffett have suggested portfolios for investors who want to invest in US domestic stocks and bonds.