I like the one-fund portfolio strategy outlined here but out of curiosity: Is it possible to quantify the space between the "good enough" strategy and the "ideal" strategy above, disregarding the added complexity and other problems alluded to?In theory, the "ideal" default portfolio would be William Sharpe's Market Portfolio but it has various problems [...]
As a consequence, I think that portfolio 1 is a very good default portfolio [...]
Investors who desire a specific gliding or fixed asset allocation can go with portfolio 2 and choose among the various available all-in-one index funds and ETFs [...]
I think that these funds and ETFs are good enough [...]
For instance, what is the cost of following this approach, as opposed to a US/ex-US/bonds 3-fund strategy (in terms of lost growth opportunity, not effort/time cost)?
Statistics: Posted by etfan — Sat Jan 27, 2024 12:17 am — Replies 793 — Views 214809