Vanguard recently released its new Total World Stock Index Fund. (ETF ticker VT, index mutual fund ticker: VTWSX). The allocation would be 59% international and emerging markets with the remaining 41% in US stocks. The expense ratio for VT will be .25%.
I’m a fan of all in one investments. They keep life simple for those of us who do not want to bother rebalancing their portolios.
Previous options include investing in separate Vanguard index funds in varying proportion depending on age and risk tolerance:
Total Stock Market Index
International stock market Index
Total Bond Index
Then an investor can rebalance periodically to bring the allocation back to the target allocation.
Another option would be a Vanguard Life Cycle Fund. I’m also a big fan of life cycle funds that will do the automatic rebalancing as a person ages. These funds of funds are efficient, cheap and simple to own.
One stop investment funds are great. Investors can focus on saving more money to add to their investments instead of doing research that will probably not help them in the long run.
