4 ETFs for a Balanced Portfolio
Exchange traded funds, aka ETFs, are a remarkably useful investment option. ETFs are a way to buy into a mutual fund without having to make the often hefty minimum purchases that funds tend to require -- you can buy as little as a single share of an ETF. And like mutual funds, ETFs are the perfect way to diversify your portfolio with a minimum of effort. However, with literally thousands of ETFs available for purchase, picking just the right one can be quite a challenge.
Sometimes simplicity is the way to go, especially if you are a hands-off investor who prefers to spend his time on other pursuits. For a well diversified, general-purpose stock portfolio, you can't go wrong with the Vanguard S&P 500 ETF (NYSEMKT: VOO), widely known to be Warren Buffet's favorite ETF. Boasting an incredibly low 0.04% expense ratio, this ETF will give you a way to track the market at the lowest possible price. Of course, stocks alone are not enough to produce a diversified portfolio, which leads us to...
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Source: Fool.com