Any thoughts on the bogle head 3-fund portfolio? Can it be seen as a 'growth' portfolio or a mix of growth + income portfolio? - Seedly
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Anonymous

Asked on 26 Mar 2020

Any thoughts on the bogle head 3-fund portfolio? Can it be seen as a 'growth' portfolio or a mix of growth + income portfolio?

Came across the bogle head 3-fund portfolio consisting of a local index (STI ETF), international index (eg. s&p500, VWRD, IWDA, EIMI) and lastly a bond. What is the investment objective of this portfolio?

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This portfolio is to achieve these:

  • match market returns: of 8-10% on average

  • lowest possible fees: 0.1% to about 0.5%, compared to mutual fund which is at least 1%

  • no need to manage investment: fund self cleanse by removing stocks which no longer fit to be in a fund and replace with another better stock

The local + international index will make it more growth portfolio.

The bond index will make it more income portfolio.

Personally I modified the fund to be as such:

  • local fund: Removed. STI ETF is very bad as banks as telcos has a very large percentage in it. Hence it is not as diversified as S&P. Furthermore, I am not convinced Singapore's index will outperform US index.

  • International index: I use IWDA + EIMI. Both reinvests dividends so i do not have to manage the dividends. The 2 of them covers developed (IWDA) n emerging (EIMI) markets. So I have the broadest diversification possible

  • Bond: Removed. Our CPF acts as a bond already. Also, I have long time horizon to invest, hence i would sacrifice stability of a bond which gives 3-4% to get a higher return of 8-10% from international index funds

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Tan Kel Vin
Tan Kel Vin

26 Mar 2020

IWDA holdings: 1645, expense ratio: 0.2%, trading volume: 511,053 SWRD: holdings: 1632, expense Ratio: 0.12%, trading volume: 4,700 (SWRD is better than IWDA even though IWDA is more popular)
Question Poster

27 Mar 2020

So with just IWDA + EIMI, theres no need for USPX since theres already alot of exposure to the US markets?
Thank You!
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Ck Thong

Ck Thong

Level 3. Wonderkid

Answered on 26 Mar 2020

I'm treating CPF as the bond fund, syfe REIT+ as local fund and dump the rest of the money into cspx via ibkr.

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Thank You!
Can you clarify
I wonder if
This is so helpful ūüĎć
What about
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