Twenty benefits from the three-fund total market index portfolio.
The Bogleheads’ Guide to The Three-Fund Portfolio describes the most popular portfolio on the Bogleheads forum. This all-indexed portfolio contains over 15,000 worldwide securities, in just three easily-managed funds, that has outperformed the vast majority of both professional and amateur investors.
If you are a new investor, or an experienced investor who wants to simplify and improve your portfolio, The Bogleheads’ Guide to The Three-Fund Portfolio is a short, easy-to-read guide to show you how.
Table of Contents
FOREWORD BY JOHN C. BOGLE xi
PREFACE: THE HISTORY OF THE BOGLEHEADS’
THREE-FUND PORTFOLIO xvii
ACKNOWLEDGMENTS xxv
CHAPTER 1: THE INVESTMENT INDUSTRY 1
CHAPTER 2: JOHN C. BOGLE - THE INVESTOR’S BEST FRIEND 5
CHAPTER 3: JOHN BOGLE INTRODUCES THREE TOTAL MARKET INDEX FUNDS 9
CHAPTER 4: TWENTY BENEFITS OF TOTAL MARKET INDEX FUNDS (IN NO PARTICULAR ORDER) 13
Benefit1: No Advisor Risk 14
Benefit2: No Asset Bloat 17
Benefit3: No Index Front Running 19
Benefit4: No Fund Manager Risk 20
Benefit5: No Individual Stock Risk 22
Benefit6: No Overlap 24
Benefit7: No Sector Risk 25
Benefit8: No Style Drift 26
Benefit9: Low Tracking Error 27
Benefit10: Above-Average Return 28
Benefit11: Simplifi ed Contributions and Withdrawals 32
Benefit12: The Benefitof Consistency 33
Benefit13: Low Turnover 34
Benefit14: Low Costs 35
Benefit15: Maximum Diversifi cation (lower risk) 38
Benefit16: Portfolio Effi ciency (best risk/return ratio) 39
Benefit17: Low Maintenance 40
Benefit18: Easy to Rebalance 41
Benefit19: Tax Effi ciency 42
Benefit20: Simplicity (for investors, caregivers, and heirs) 44
CHAPTER 5: GETTING STARTED 49
CHAPTER 6: STAY THE COURSE 59
APPENDIX I: WHAT EXPERTS SAY 63
APPENDIX II: MEET THE BOGLEHEADS 69
GLOSSARY OF FINANCIAL TERMS 75
INDEX 79
