Bogleheads 3 Fund Portfolio Review & Vanguard ETFs To Use

The Bogleheads 3 Fund Portfolio is arguably the most popular lazy portfolio out there. Here we’ll investigate its components, historical performance, and the best ETFs to use in its implementation.

// TIMESTAMPS:

00:00 - Intro
00:27 - What is the Bogleheads 3 Fund Portfolio?
02:08 - Why Index Funds?
03:04 - Why International Stocks?
03:43 - Bogleheads 3 Fund Portfolio Benefits
04:20 - Asset Selection
06:29 - Why No International Bonds?
09:14 - Historical Performance
10:16 - ETFs To Use
11:23 - Disclosure
11:57 - Disclaimer
12:28 - Outro

// PARTIAL TRANSCRIPT:

The Bogleheads 3 Fund Portfolio is arguably the most popular lazy portfolio. “Bogleheads” are followers of the advice and path of the famous Jack Bogle, founder of Vanguard and considered the father of index investing. I am one. The Bogleheads Forum houses an exchange of knowledge surrounding Bogle’s principles.

The Bogleheads 3 Fund Portfolio is a simple portfolio comprised of 3 broad asset classes – usually a U.S total stock market index fund, a total international stock market index fund, and a total bond market index fund. Bogle suggested the “majesty of simplicity.”

The Bogleheads 3 Fund Portfolio draws on the idea of portfolio diversification’s ability to reduce volatility and drawdowns, protect against black swan events, and maximize risk-adjusted return. Holding multiple uncorrelated assets invariably reduces risk and can result in higher returns – and almost always higher risk-adjusted returns – than holding one asset in isolation.

A one-size-fits-most 80/20 allocation for the Bogleheads 3 Fund Portfolio is:

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

#investing #lazyportfolios #bogleheads #vanguard #bogle #lazyportfolio #stocks #stockmarket #indexinvesting

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[moultonswoodshop]

This video offered the most clarity and breakdown of a 3 fund portfolio I've seen on youtube. You have another subscriber, sir.

[gregoryrpitts]

Just want to say thanks for making purely informational videos and not trying to make it “entertainment” like so many others do. Subscribed.

[kellyk]

Ira= 60%vtsax 20%vexax 20%vtiax No bonds, those things are dream killers. This allocation has served me well for decades-even well into retirement.

[jerryspencer]

I can't believe you only have 1.03K subscribers. You are one of the best at what you do!

[spirosv]

VTI, VXUS, BND is my all time favorite! I've weathered many storms with combo and would highly recommend it. Excellent

[thomasm]

Relistening to this every so often to balance against learning about high-risk strategies

[jackcarraway]

Here's what I do personally:

Roth: 100% VTI.

Brokerage: VGT (growth), SCHD (dividends), VCLT (bonds; I opt for the corporate side because I prefer to buy government bonds directly on Treasury Direct).

[noreenn]

Enjoyed your video. Just adjusted my 401k to a 60/20/20 allocation. Thanks for helping me decide to make the adjustment.

[gwendolyngwen]

Is it a good idea to have a stock broker in Uk?

[JosephDickson]

In my Roth IRA I have a 5 fund portfolio that's similar. VOO, VO, VB, VNQ, BND and contribute to equally on a weekly basis. This allows me to invest a little higher in Small and Mid-Cap funds than would be possible though VTI alone.

Rather than invest internationally I prefer VNQ which invests in real estate stocks. While BND gives me that 20% bond protection.

[J-YouTube]

Great summary! I love the simplicity of the general advice of Bogle and the simplicity of your video about it!!

[Zycoreination]

I have a 30 year save horizon portfolio so atm I am not in bonds (will adjust with bonds as I grow older)

I use 7 index funds (highest weight in global) with an average total fee of 0, 18% annually.

1 Global all-stock (Naturally US heavy)

My own country's index (Sweden)
1 Domestic large cap
1 Domestic small cap

1 European index

1 Emerging markets (Naturally china/asia heavy)

1 Pacific (Australia, Hong Kong, Singapore, New Zealand)

1 Japanese index fund

[karlisimo]

Think I just became your 200th subscriber! I'm currently reading the Little Book and am becoming a Boglehead myself haha :D
Thanks for the great video - if I may give a little peace of advice though: You could consider having the camera a bit further away so we can see your hand gestures as well. In my opinion this might make the videos even more lively (especially if you're reading from a teleprompter - I do that too :P)

[APE-AL]

I like the idea but I’m used to being heavy and downsizing was weird for me. I chose vti, vxus, bnd and bndx. I want it all.

[Johnnyboy]

Thank you for your video. 40 years in the 3 fund portfolio is all well and good but what formula would you advise for just turned 60 year olds but intend to keep working for at least another 10 years ? Any advice would be appreciated :)

[misterschifano]

Arrived at these conclusions independently, with the exception that I use an emerging markets fixed income instead of domestic corporate because the negative correlation is stronger... gives me more “anchor” per dollar. Bogle has it right for almost everyone: “buy everything and hold it forever.”

[KarynWhiteOfficial]

Great information and delivery!! Thank you!

[jasonhobbs]

Your content is amazing! You have heavily influenced my recent investment decisions, inspiring buys into Ntsx, Ntsi, and HFEA. I independently decided I trusted avantis, getting into avuv and avdv, but hearing that you like them increases my confidence in that decision.

One question: why only 20% international stocks? What reason can you give for such a significant home country bias? I’m about 40% international (excluding my HFEA lotto ticket).

[jayh]

The best investment guide one can find. Thank you so much! Subscribed!!!

[dappergents]

Very informative just what I was looking for
Really helped my decision making
New subscriber