In Part 1, I looked at a better domestic solution than VTI. Now, I will examine the foreign stocks piece for a better alternative to VEU. (Some use VXUS instead of VEU. Their returns are virtually identical but VXUS has a slightly higher three-year tax cost ratio per Morningstar, so I will use VEU in … Read more The “Three Fund” Portfolio Part 2 – Foreign Stocks
Introduction Recently, I reviewed model “risk-based portfolios” (i.e. conservative, moderate, aggressive) from First Trust and Blackrock. These companies promote their portfolios to investors and financial advisors under the guise of “modern portfolio theory” diversification. Typically, they recommend between 10-16 in-house ETFs. These investment shops update their portfolios quarterly to overweight the hottest sectors or factors … Read more The “Three Fund” Portfolio Part 1 – Domestic Stocks
