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The 5 Best Index Funds for Optimists

If you’re bullish on the future, follow Warren Buffett’s simple advice

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Best Index Funds #5: Vanguard Short-Term Bond ETF (BSV)

best-index-funds-vanguard-bsv-warren-buffett1-Year Performance: 0.64%
5-Year Performance: 13.2% (annualized)
Expense Ratio: 0.1%

If you’re strictly following the Warren Buffett model, you will need to have a fund to park some cash and offer a bit of diversification to your holdings. One of the best index funds to do just that is the Vanguard Short-Term Bond ETF (BSV).

This ETF is pegged to the Barclays U.S. 1-5 Year Government/Credit Float Adjusted Index, which includes all medium- and large-issue government, investment-grade corporate and investment-grade international dollar-denominated bonds with maturities between one and five years.

The short-term segment of the bond market is essentially a way to shield your money from volatility and risk, and that makes it a good choice for ready reserve cash.

As of this writing, Jim Woods was long VTI and IWM.

Article printed from InvestorPlace Media, http://investorplace.com/2014/03/5-best-index-funds-warren-buffett/.

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