The 3 Fund Portfolio Is Dangerous & Waste Of Time (This 1 ETF Replaces It)

Thinking about implementing the 3 fund strategy? STOP RIGHT NOW!

The 3 fund portfolio was inspired by the philosophy of John Bogle, the founder of Vanguard and considered by many the father of index investing.

Its goal was simple – divide the portfolio between bonds, USA stocks and Non USA stocks.

However, I think the classic 3 fund strategy is completely overrated and is wasting your time. Or worse, it could be even dangerous. Let me show you why and also which 1 ETF can instantly replace it.

#etf #etfinvesting

-----

Disclaimer:
The information provided in this video is for educational, entertainment and informational purposes only. It is not intended to be financial, legal, tax or investment advice. The views and opinions expressed in this video are my own and do not reflect those of any organization or entity. I am not a financial planner, advisor or expert. You should do your own research and consult with a professional before making any financial decisions. I do not know your personal situation and would never recommend you to purchase any financial instrument. Investing involves risks and you may lose money. Any projections of potential future market developments or results are only conjectures about possible development scenarios that may not materialize. The author doesn't have a position in Vanguard Total World Stock Index Fund ETF (VT), Vanguard Total Stock Market Index Fund ETF (VTI), Vanguard Total International Stock Index Fund ETF (VXUS) or Vanguard Total Bond Market Index Fund ETF (BND). Any reference to past results should not be used as a basis for assuming similar results in the future. I am not responsible for any losses or damages resulting from your use of the information in this video. Please do your due diligence and invest responsibly.

[DividendMethodWithOgnyan]

What do you think about the 1 ETF strategy and do you like it better than the original 3 fund one?

[qbbbglf]

Yes!! That makes so much sense! Right now I have about 60k in bond mutual fund and ETF bc I am getting closer to retirement age and having bonds was recommended to me. Now, I am going to slowly move that money into VT. I already have about 6K in VT but I am sure right now that increasing that position is better for me. Thank you brother!!
JJ

[Seoulsearch]

Really enjoy your videos and sense of humor! 😁

[GregK]

Many good points to consider. I see VT as a starting point for beginner investors. With greater understanding, an investor may choose to adjust region weights or add other factors (e.g., size, value) to construct a different combination of funds. My current core is USA 60% / DM 20% / EM 20% with each region split equally between broad-market and small-cap value ETFs, but this came after doing a lot of reading and modeling. I like the point of the cash flow from dividend growth stocks acting as a replacement/supplement to bonds. I prefer that approach to a bond ladder.

[Jpsantos]

The fact that you call portfolio 1 flawed, but yet you used the absolute most incorrect method to try to show why is crazy. VT does not equal 75% VTI and 25% VXUS. It constantly changes and as of now in 2024, VT is 62% US stocks after the massive 10+ years out outperformance. Back in 2010 it was close to only 50% of the portfolio, so the fact that you're overweighting US stocks by up to 25% in this backtest IS THE FLAW. I understand what you're trying to do, but you did it horribly incorrect.

[t.cheers]

Haha.. yeah right.VT has a 99% correlation with SPY.
Like it or not, in God we trust 🦅🇺🇲