 Diversify
with index fundsIndex
funds cover cover broad swaths of the market and
often—more than 70% of the time—beat other
kinds of funds, so it's no wonder that experts like John
Bogle and Burton Malkiel prefer them. They also have low expense
ratios, which means less of
your money goes to fees and more stays available to grow.
Diversification is
easy as pie with this portfolio equally divided among
three funds: a large, small, and and international index
fund.
- a large index
fund invests in the staid, stable large
United States companies that
traditionally have comprised the majority
of the market's value
- a small
index fund invests in smaller United
States companies, whose growth climbs,
especially during periods of innovation
- an international
index fund invests in foreign companies,
where many predict faster growth than
that of United States companies.
|
 |
fund
type
|
fund name,
ticker symbol
and why I like it |
target amount |
expense ratio |
large index |
Schwab 1000 Index Fund
SNXFX Tracks the Schwab 1000
Index, representing the largest 1000 publicly
traded companies in the United States, enlivening
the solid performance of the S&P 500 with the
diversity of the 500 next-largest companies: over
the last five years, has returned three times as
much as the S&P 500, suggesting this fund is
a robust vehicle for bear as well as bull markets
|
34% |
0.29% |
small index |
Schwab
Small-Cap Index Fund SWSSX Tracks the next-largest
1000 publicly traded U.S. companies, for a
broadly diversified sampling of smaller stocks
|
33% |
0.19% |
international index |
Schwab International Index
Fund SWISX Tracks the Morgan Stanley Capital International Europe, Australasia Far East
(MSCI-EAFE) Index, a benchmark index for 22 developed markets outside the United States and Canada, the largest components being Japan and the United
Kingdom: since its inception in 1969, this index has returned on average 9.45% a
year
|
33% |
0.19% |
|