2 Easy Ways to Build a Balanced ETF Portfolio: Vanguard MSCI Emerging Markets ETF (VWO), Vanguard Total Bond Market ETF (BND)

For bonds, start with the same core bond ETF mentioned above and diversify a bit more by including ETFs that invest in Treasury inflation-protected securities like Schwab U.S. TIPS ETF or international bonds such as SPDR Barclays International Treasury Bond ETF .

The advantage of this portfolio is that it gives you coverage of several more asset classes and the ability to fine-tune your portfolio weightings. But the downside is that it doesn’t offer maximum simplicity. And, because you’ll be doing more rebalancing, choose commission-free ETFs when possible.

Foolish bottom line
Don’t let the ETF world scare you. It’s really quite simple to craft a balanced all-ETF portfolio. As an added bonus, it has never been cheaper to own them. Consider building your own all-ETF portfolio using one of these methods.

The article 2 Easy Ways to Build a Balanced ETF Portfolio originally appeared on Fool.com and is written by Nicole Seghetti.

Fool contributor Nicole Seghetti has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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