Investing can be remarkably simple. This article shows you how to construct a well-diversified portfolio of stocks and bonds without breaking a sweat. The secret is to employ low-cost, index-tracking exchange-traded funds. Put 40% of your assets in Vanguard S&P 500 ETF (symbol VOO) or iShares Core S&P 500 Index ETF (IVV), both of which track Standard & Poor's 500-stock index. Their expense ratios are just 0.05% and 0.07%, respectively. The index includes virtually all large-capitalization U.S. stocks and some mid-cap stocks, representing roughly 70% of the total capitalization of the U.S. stock market. Like all the stock indexes in this article, the S&P 500 is weighted by market cap, meaning...
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