If you want to build a low-cost, diversified portfolio that can withstand short-term market fluctuations while offering potential for superior long-term results, look no further than Vanguard funds.
Vanguard funds cover a lot of ground in terms of diverse categories, but nothing that is highly speculative or too complex for the everyday investor to understand and to use to build a solid portfolio.
In different words, the best mutual fund portfolios are often those that are simple, diverse and low-cost. Although the asset allocation and specific investment allocation will vary according to each individual investor’s unique objectives and risk tolerance, most investors can build a complete portfolio with a mix of three to 10 mutual funds.
When using several funds, a smart portfolio structure is the core-satellite approach, which is just as it sounds: You start with a core holding, which receives that largest allocation percentage, then build around the core with satellite funds.
With that backdrop, here are the seven best Vanguard funds to build an all-weather portfolio: