Doubling Your Money with ETFs

Forbes’ William Baldwin has a prescription for investors who would like to double their money in the stock market – be very patient and use exchange traded funds.

Baldwin recommends different portfolios for a taxable and tax-sheltered account.  In the $100,000 taxable account, put $10,000 each into Vanguard funds that track large, medium and small companies in both growth and value categories.  Add $15,000 each into Vanguard’s European and Pacific index funds and another $10,000 into Vanguard’s emerging markets fund.

For the $100,000 tax-free account, put $70,000 in Vanguard’s Total Bond Market ETF (BND), $20,000 in the SPDR Barclays Capital High Yield Bond ETF (JNK) and another $10,000 in the Vanguard REIT ETF (VNQ).

The tickers for the taxable portfolio are:

Vanguard Mega Cap 300 Growth ETF (MGK)

Vanguard Mega Cap 300 Value ETF (MGV)

Vanguard Mid-Cap Growth ETF (VOT)

Vanguard Mid-Cap Value ETF (VOE)

Vanguard Small-Cap Growth ETF (VBK)

Vanguard Small-Cap Value ETF (VBR)

Vanguard European ETF (VGK)

Vanguard Pacific ETF (VPL)

Vanguard Emerging Markets ETF (VWO)

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