Seeking Alpha recently published my article on a "4-Fund Portfolio" in which I proposed investors consider the advantages of holding a small number of low-cost funds in order to achieve broad diversification and exposure to the
The Vanguard Mid Cap ETF Is Ideal For Portfolio Diversification
Summary
- Many investors are under-allocated with respect to the mid-cap sector.
- As is typical with Vanguard funds, this Mid Cap ETF is a very cost-efficient way for investors to gain additional diversification within their portfolio - one likely skewed toward large-cap stocks.
- Given VO's superb long-term track record and low cost, investors should consider the ETF as a core holding in a well-diversified portfolio built for the long term.
Michael Fitzsimmons is a retired electronics engineer and avid investor. He advises investors to construct a well-diversified portfolio built on a core foundation of a high-quality low-cost S&P500 fund. For investors who can tolerate short-term risks, he advises an over-weight position in the technology sector, which he believes is still in the early stages of a long-term secular bull-market. For dividend income, and as a 4th generation oil & gas man, Fitzsimmons suggests investors consider a position in large O&G companies that provide strong dividend income and dividend growth. Fitzsimmons' articles on portfolio management recommend a top-down capital allocation approach that is aligned with each individual investor's personal situation (i.e. age, retired/working, risk tolerance, income, net worth, goals, etc) and might include allocations into investment categories such as the S&P500, technology, dividend income, sector ETFs, growth, speculative growth, gold, and cash.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.
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