"As a smart investor, can you really cover all of your bases with just four exchange traded funds (ETFs)? The answer is yes, but only if you pick the right funds. There will undoubtedly be some overlap between the four ETFs I've selected for you today. Nevertheless, there are enough differences to justify these picks and to consider putting 25% of your investable capital into each of them."
"If you're going to stock to only four funds, it makes sense to have at least one ETF that tracks the S&P 500. To achieve that objective, investors can turn to the Vanguard S&P 500 ETF ( NYSEARCA:VOO). With approximately 500 stocks in its holdings, the Vanguard S&P 500 ETF is market capitalization weighted and covers all of the most important sectors of the U.S. economy. From technology to industrials, utilities, energy, consumer discretionary, and more, the VOO ETF ensures immediate, broad-based, multi-market stock exposure."
Allocate equal weight across four ETFs—VOO, VYM, JEPI, and SOXX—to cover broad-market diversification, dividend income, tax-efficient payouts, and focused technology exposure. Expect some overlap among holdings but meaningful differences justify a 25% allocation to each for a balanced portfolio. VOO tracks the S&P 500 with roughly 500 market-cap-weighted stocks spanning major U.S. sectors, offering immediate broad-market coverage, a 1.17% dividend yield, and an exceptionally low expense ratio of 0.03%. Conduct due diligence before investing, but combining these ETFs can form a simple, long-term wealth-building foundation.
Read at 24/7 Wall St.
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