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 6d ago

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

5d ago

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

5d ago

So with just IWDA + EIMI, theres no need for USPX since theres already alot of exposure to the US markets?
Ck Thong
Ck Thong
Level 2. Rookie
Answered 6d ago

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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