The Simple Global ETF Portfolio

By Carl Delfeld of the Chartwell ETF Advisor

Do you wonder sometimes if we make investing far too complex and confusing? Exchange-traded funds were designed to be easy to use with all the advantages of simplicity, transparency, tax efficiency and low fees. While perhaps sub-optimal from a financial engineering point of view, the simple approach may work best for many investors.

Here are my picks for a portfolio of just three ETFs that span the globe.

iShares Dow Jones U.S. Total Market (IYY), 1,634 holdings, $15 trillion of market cap, top 10 holdings equal 17%

Vanguard FTSE All-World ex-US (VEU) 2,200 stocks, 48 countries, top ten equal 9.4%, large cap, 52% midcap, 38%, smallcap 10%, UK/Japan, 35%

Vanguard Emerging Markets (VWO) Brazil, 10.5%, India, 6.3%, Taiwan, 12.4%, China 10.5%, Russia, 10%, South Africa, 8.6%, Mexico 6.3%

Some may call this the "lazy portfolio" but others call it the "smart portfolio". Some of my clients use this as their core portfolio and then layer more creative and aggressive portfolios on top of it. Be careful to get professional advice from Chartwell or another advisor as to the proper proportions of each ETF that suit your investment goals. Find out more about this strategy by going to Chartwell ETF.