Some experts are pushing a simpler approach to investing to cut through the morass of fund types available and avoid emotional decision-making, WSJ's Anna Prior writes. This approach would mean using three low-cost mutual funds or ETFs.

If you're a Boglehead, that could mean a U.S. focused Vanguard[profile] Total Stock Market Index Fund, Vanguard Total International Stock Index and Canguard Total Bond index. A 40 percent U.S. stocks, 20 percent international stocks and 40 percent bonds of those funds returned 7.14 percent a year over the last decade, Prior wrote.

The WSJ didn't neglect BlackRock[profile], suggesting a combination of iShares Core S&P Total U.S. Stock Market, iShares Core MSCI Total International Stock and iShares Core Total U.S. Bond Market. For the portfolio with exposure to alternative strategies or one that isn't dominated by stocks or bonds, experts suggest using a global stock fund and a global diversified bond fund and saving a third portion for an alternative strategy or commodities. USA Mutuals[profile] GS Connect S&P GSCI Enhanced Commodity Total Return Strategy and Pimco[profile] Commodity Real Return Strategy are options, Prior wrote.

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Edited by: Casey Quinlan


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