Five Essential Asset Classes

Five ETF Basic Asset Class Portfolio

There are specific asset classes that need to be part of every portfolio.  Here is a list of the basic group I include in every portfolio.  While the ETFs shown below serve as examples, every portfolio will eventually include these five asset classes.

  • U.S. Equities – VTI
  • Domestic Bonds – BND or AGG
  • Developed International Markets – VEU or EFA
  • Emerging Markets – VWO or EEM
  • Domestic REITs – VNQ or ICF

Are these five asset classes sufficient to build a well-diversified portfolio?  To answer the question, we run a Quantext Portfolio Planner (QPP) analysis to gain clues.

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