You don’t need to learn quantum physics to invest. Here’s how to make it work:
Banks that handle the Social Security debit card you are changing
The Treasury Department is changing the banks that handle recipients’ debit cards, with Bank 3 replacing Comerica Bank instead of Bank 5.
If you’ve ever wondered whether it’s possible to build yourself a balanced portfolio that filters out noise and eliminates unnecessary decisions, the answer is yes.
As a bonus, you can set up and operate an exchange-traded fund (ETF) with minimal effort. Here’s how:
We aim for three investment types
If you want to cover your bases, you can do so with three types of funding.
- A wide range of domestic stock market index funds.
- An international stock index fund aimed at global diversification.
- A high-quality bond index fund that pursues stability.
1. Domestic exposure
If you don’t know where to start, this fund is a great choice as it provides exposure to primarily domestic markets.
- Fidelity 500 Index Fund (NASDAQMUTFUND:FXAIX): Invests primarily in 500 of the largest US companies, providing broad exposure to the US market. Its purpose is to mirror the performance of the S&P 500, and it does so with an extremely low expense ratio of 0.015%.
2. International exposure
There are several powerful options for broad exposure to international equities in developed markets outside of North America, including:
- iShares Core MSCI EAFE ETF (NYSEMCT:IEFA): This ETF aims to track the investment results of the MSCI EAFE index, which includes large- and mid-cap companies from Europe, Australia, New Zealand, and other markets. The fund holds a diversified portfolio of stocks across sectors and industries. With an expense ratio of 0.07%, you can achieve the exposure you need at a low cost.
3. Bonds
If the market is off its axis, or if your portfolio is being eroded by inflation, having a bond index fund can help you minimize your losses. Here are some worth considering:
- Vanguard Total Bond Market ETF (NASDAQ:BND): Designed to provide broad exposure to the U.S. fixed income market, this ETF tracks the Bloomberg U.S. Aggregate Adjusted Index, which represents a broad range of U.S. investment-grade bonds. Examples include U.S. government bonds, government agency bonds, corporate bonds, and mortgage-backed securities. This Vanguard ETF helps balance your portfolio and reduce risk by holding thousands of bonds.
If you want to simplify your investment process, these three easy-to-purchase and easy-to-manage index funds are all you need to get started.
Dana George has a position in Fidelity Concord Street Trust – Fidelity 500 Index Fund. The Motley Fool owns a position in and recommends the Vanguard Total Bond Market ETF. The Motley Fool has a disclosure policy.
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