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 Emerging Markets ETF (VWO)
