Build "three fund" portfolio using ishares
Build "three fund" portfolio using ishares
I am trying to replicate the three fund portfolio using Fidelity's 30 commission free ishares. I realize that the expense ratios are a little higher.
I want to mimic these three funds:
Vanguard Total Stock Market (VTSMX)
Vanguard Total International (VGTSX)
Vanguard Total Bond Market (VBMFX)
Here are my optons:
FIDELITY NASDAQ COMPOSITE INDEX - ONEQ (0.31%)
ISHARES BARCLAYS TIPS BOND FUND - TIP (0.2%)
ISHARES CORE S&P 500 ETF - IVV (0.07%)
ISHARES CORE S&P MID-CAP ETF - IJH (0.15%)
ISHARES CORE S&P SMALL-CAP ETF - IJR (0.16%)
ISHARES CORE TOTAL U.S. BOND MARKET ETF - AGG (0.08%)
ISHARES DOW JONES EPAC SELECT DIVIDEND INDEX FUND - IDV (0.5%)
ISHARES DOW JONES SELECT DIVIDEND - DVY (0.4%)
ISHARES DOW JONES US REAL ESTATE - IYR (0.47%)
ISHARES IBOXX $ HIGH YIELD CORPORATE BOND - HYG (0.5%)
ISHARES IBOXX $ INVESTMENT GRADE CORPORATE BOND - LQD (0.15%)
ISHARES JPMORGAN USD EMERGING MARKETS BOND FUND - EMB (0.6%)
ISHARES MSCI ACWI EX US INDEX FUND - ACWX (0.34%)
ISHARES MSCI ACWI INDEX FUND - ACWI (0.34%)
ISHARES MSCI EAFE - EFA (0.34%)
ISHARES MSCI EAFE SMALL CAP INDEX FUND - SCZ (0.4%)
ISHARES MSCI EMERGING MARKETS INDEX - EEM (0.67%)
ISHARES RUSSELL 1000 - IWB (0.15%)
ISHARES RUSSELL 1000 GROWTH - IWF (0.2%)
ISHARES RUSSELL 1000 VALUE - IWD (0.2%)
ISHARES RUSSELL 2000 - IWM (0.23%)
ISHARES RUSSELL 2000 GROWTH - IWO (0.25%)
ISHARES RUSSELL 2000 VALUE - IWN (0.37%)
ISHARES RUSSELL 3000 - IWV (0.2%)
ISHARES S&P 500 GROWTH - IVW (0.18%)
ISHARES S&P 500 VALUE - IVE (0.18%)
ISHARES S&P MIDCAP 400 GROWTH - IJK (0.25%)
ISHARES S&P MIDCAP 400 VALUE - IJJ (0.27%)
ISHARES S&P NATIONAL MUNICIPAL BOND FUND - MUB (0.25%)
ISHARES S&P SMALLCAP 600 GROWTH - IJT (0.25%)
ISHARES S&P SMALLCAP 600 VALUE - IJS (0.29%)
I think I've matched the international fund (VGTSX) = ISHARES MSCI ACWI EX US INDEX FUND ACWX
Which fund or funds will match Vanguard Total Stock Market (VTSMX) and Vanguard Total Bond Market (VBMFX)?
I want to mimic these three funds:
Vanguard Total Stock Market (VTSMX)
Vanguard Total International (VGTSX)
Vanguard Total Bond Market (VBMFX)
Here are my optons:
FIDELITY NASDAQ COMPOSITE INDEX - ONEQ (0.31%)
ISHARES BARCLAYS TIPS BOND FUND - TIP (0.2%)
ISHARES CORE S&P 500 ETF - IVV (0.07%)
ISHARES CORE S&P MID-CAP ETF - IJH (0.15%)
ISHARES CORE S&P SMALL-CAP ETF - IJR (0.16%)
ISHARES CORE TOTAL U.S. BOND MARKET ETF - AGG (0.08%)
ISHARES DOW JONES EPAC SELECT DIVIDEND INDEX FUND - IDV (0.5%)
ISHARES DOW JONES SELECT DIVIDEND - DVY (0.4%)
ISHARES DOW JONES US REAL ESTATE - IYR (0.47%)
ISHARES IBOXX $ HIGH YIELD CORPORATE BOND - HYG (0.5%)
ISHARES IBOXX $ INVESTMENT GRADE CORPORATE BOND - LQD (0.15%)
ISHARES JPMORGAN USD EMERGING MARKETS BOND FUND - EMB (0.6%)
ISHARES MSCI ACWI EX US INDEX FUND - ACWX (0.34%)
ISHARES MSCI ACWI INDEX FUND - ACWI (0.34%)
ISHARES MSCI EAFE - EFA (0.34%)
ISHARES MSCI EAFE SMALL CAP INDEX FUND - SCZ (0.4%)
ISHARES MSCI EMERGING MARKETS INDEX - EEM (0.67%)
ISHARES RUSSELL 1000 - IWB (0.15%)
ISHARES RUSSELL 1000 GROWTH - IWF (0.2%)
ISHARES RUSSELL 1000 VALUE - IWD (0.2%)
ISHARES RUSSELL 2000 - IWM (0.23%)
ISHARES RUSSELL 2000 GROWTH - IWO (0.25%)
ISHARES RUSSELL 2000 VALUE - IWN (0.37%)
ISHARES RUSSELL 3000 - IWV (0.2%)
ISHARES S&P 500 GROWTH - IVW (0.18%)
ISHARES S&P 500 VALUE - IVE (0.18%)
ISHARES S&P MIDCAP 400 GROWTH - IJK (0.25%)
ISHARES S&P MIDCAP 400 VALUE - IJJ (0.27%)
ISHARES S&P NATIONAL MUNICIPAL BOND FUND - MUB (0.25%)
ISHARES S&P SMALLCAP 600 GROWTH - IJT (0.25%)
ISHARES S&P SMALLCAP 600 VALUE - IJS (0.29%)
I think I've matched the international fund (VGTSX) = ISHARES MSCI ACWI EX US INDEX FUND ACWX
Which fund or funds will match Vanguard Total Stock Market (VTSMX) and Vanguard Total Bond Market (VBMFX)?
Re: Build "three fund" portfolio using ishares
Why are you doing this?
Re: Build "three fund" portfolio using ishares
I'm taking that advice of this site and trying to stick with the three asset classes stated above. I need to do this at Fidelity, and I only have around $1500 in this account. I could build a three fund portfolio with mutual funds but it It takes a minimum of $2500 per mutual fund at Fidelity.
- Barry Barnitz
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Re: Build "three fund" portfolio using ishares
Here are your corresponding iShares:
Vanguard Total Stock Market (VTSMX) --->ISHARES RUSSELL 3000 - IWV (0.2%)
Vanguard Total International (VGTSX)---> ISHARES MSCI ACWI EX US INDEX FUND - ACWX (0.34%)
Vanguard Total Bond Market (VBMFX) ---> ISHARES CORE TOTAL U.S. BOND MARKET ETF - AGG (0.08%)
regards,
Vanguard Total Stock Market (VTSMX) --->ISHARES RUSSELL 3000 - IWV (0.2%)
Vanguard Total International (VGTSX)---> ISHARES MSCI ACWI EX US INDEX FUND - ACWX (0.34%)
Vanguard Total Bond Market (VBMFX) ---> ISHARES CORE TOTAL U.S. BOND MARKET ETF - AGG (0.08%)
regards,
Additional administrative tasks: Financial Page bogleheads.org. blog; finiki the Canadian wiki; The Bogle Center for Financial Literacy site; La Guía Bogleheads® España site.
Re: Build "three fund" portfolio using ishares
You've already gotten the answer from Barry, but you might find this article handy for future reference.
http://online.wsj.com/article/SB1000142 ... lenews_wsj Enlarge the chart provided by Rick Ferri.
On closer look, to get international small caps, I guess you'll have to add iShares MSCI EAFE Small Cap (SCZ) since ACWX is only large and mid cap.
http://online.wsj.com/article/SB1000142 ... lenews_wsj Enlarge the chart provided by Rick Ferri.
On closer look, to get international small caps, I guess you'll have to add iShares MSCI EAFE Small Cap (SCZ) since ACWX is only large and mid cap.
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Re: Build "three fund" portfolio using ishares
To be honest I would not bother with three funds for $1,500. Do you have other accounts you are building your AA around?brown3218 wrote:I'm taking that advice of this site and trying to stick with the three asset classes stated above. I need to do this at Fidelity, and I only have around $1500 in this account. I could build a three fund portfolio with mutual funds but it It takes a minimum of $2500 per mutual fund at Fidelity.
"Out of clutter, find simplicity” Albert Einstein
Re: Build "three fund" portfolio using ishares
I would NOT use ACWX for my Total Intl replacement. Its avg daily trading volume is only around 300k shares a day so it's not out of the realm of possibility that this fund would get liquidated.Barry Barnitz wrote:Here are your corresponding iShares:
Vanguard Total Stock Market (VTSMX) --->ISHARES RUSSELL 3000 - IWV (0.2%)
Vanguard Total International (VGTSX)---> ISHARES MSCI ACWI EX US INDEX FUND - ACWX (0.34%)
Vanguard Total Bond Market (VBMFX) ---> ISHARES CORE TOTAL U.S. BOND MARKET ETF - AGG (0.08%)
regards,
Morningstar has VGTSX as 83% Developed, 17% Emerging and 79% Large, 17% Mid, 4% Smalll.
I would use a combination of EFA (90% LC, 10% MC - 100% Developed), EEM (87% LC, 13% MC - 25% Developed, 75% Emerging), and SCZ (66% MC, 34% SC - 100% Developed) to replicate Total International. SCZ is thinly traded also but that should constitute a small portion of your holdings. EFA and EEM both have avg daily volume in the 10s of millions.
Re: Build "three fund" portfolio using ishares
What would happen if the fund got liquidated? Couldn't the poster just look for something else when/if that happened?jaj2276 wrote:I would NOT use ACWX for my Total Intl replacement. Its avg daily trading volume is only around 300k shares a day so it's not out of the realm of possibility that this fund would get liquidated.
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Re: Build "three fund" portfolio using ishares
Sure but then I'm thinking you might have a tax event?retiredjg wrote:What would happen if the fund got liquidated? Couldn't the poster just look for something else when/if that happened?jaj2276 wrote:I would NOT use ACWX for my Total Intl replacement. Its avg daily trading volume is only around 300k shares a day so it's not out of the realm of possibility that this fund would get liquidated.
Even if you don't, if you accumulate a sizable position (I have no idea what the OP will eventually get to) and then try to sell your position, you will impact the market much more in a thinly traded name like ACWX.
Of course if you weren't getting "free" trades, then going with the three funds I suggested would incur 3x as many trade commissions.
- tainted-meat
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Re: Build "three fund" portfolio using ishares
Will this be in a tax-advantaged account? If so, I'd just put the money in FFNOX (four-in-one index) until you building up your assets. I agree with jay69, that is not enough money to worry about doing a 3-fund portfolio.