3 Portfolios for the Future

In the article How to Build a Portfolio Wisely and Safely, the WSJ’s Jeff Opdyke presents three approaches to building a portfolio in a time of great uncertainty.

For investors looking to protect portfolios against inflation, Opdyke recommends treasury inflation-protected securities or TIPS since their principal adjusts upward along with inflation.

Altough Opdyke mentions Vanguard’s TIPS fund, the SPDR Barclays Capital TIPS ETF (IPE) is a better deal for investors. For more on inflation investing, see the TIPS Fixed Income ETF Directory.

For optimistic investors, Opdyke suggests the Vanguard Total International Stock Index Fund. The ETF equivalent is the Vanguard FTSE All-World ex-US ETF (VEU).

In case the “Goldilocks” outlook turns out be wrong, taking out insurance in the form of cash, long-term treasurys and a commodity ETF such as the DB Commodity Index Tracking Fund (DBC) is not a bad idea.

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