The Singaporean 3-fund portfolio is the Singapore version of the Boglehead 3-fund portfolio which is suitable for US citizens. The Boglehead 3-fund portfolio comprises of three components:
- Vanguard Total Stock ETF (home equity; the name is misleading but it comprises only US stocks)
- Vanguard Total World Stock ETF (global equity)
- Vanguard Total Bond Market ETF (home bond; similarly, this is made up of only US bonds)
The Singaporean 3-fund portfolio will be a replication, and thus be:
- Nikko AM Singapore STI ETF (home equity)
- Vanguard FTSE All-World UCITS ETF (global equity)
- ABF Singapore Bond Index Fund (home bond)
The ABF Singapore Bond Index Fund
The purpose of having a bond component is to give stability to the portfolio. Equity is more volatile, and having a bonds component in a portfolio have been proven to reduce overall risk of the portfolio, whilst giving more or ......