For the coming 10 years ahead, 3 ETF portfolio: VTI·VXUS·SCHD recommended
For long-term holdings, we recommend combining three ETFs—VTI, VXUS, and SCHD—into a single portfolio. Their roles are divided among U.S. stocks, international stocks, and dividend stocks, aiming for broad diversification at ultra-low cost.
The recommended portfolio consists of 3 ETFs. The first is VTI (Vanguard Total Stock Market ETF), which invests across the U.S. stock market. The second is VXUS (Vanguard Total International Stock ETF), which invests in international stocks excluding the United States. The third is SCHD (Schwab U.S. Dividend Equity ETF), which invests in dividend-oriented stocks.
The purpose of this strategy is broad diversification and low-cost management. It emphasizes that all three ETFs have relatively low expense ratios. Rather than selecting individual stocks, this approach invests across the entire market.
The three ETFs each have a different role. VTI provides market-capitalization-weighted exposure to U.S. stocks. VXUS complements this with exposure to stocks outside the United States. SCHD provides cash-flow-like returns through dividends.
The investment approach assumes simple long-term holding. It does not require separate complex security analysis or frequent trading. Portfolio rebalancing is carried out only when necessary.
This allocation assumes long-term economic growth and participation in global markets. Sources of returns are the total returns and dividends of each market. Risks arise from market declines and regional volatility.
This recommendation presents one simple alternative for long-term investors. Specific allocations and detailed management vary depending on individual circumstances. Actual returns may differ depending on taxes and account type.
Sources: The Motley Fool
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