In my previous post, I explored several variations of the Bogleheads three fund portfolio for Singaporeans.
To recap, the ingredients of a three fund portfolio are:
A domestic stock index fundAn international stock index fundA bond index fund
Another popular portfolio is Rick Ferri’s core 4 portfolio which consists of four funds. This is basically an extension to the three fund portfolio. The additional fourth fund allows you to add different tilts to customize the portfolio to your preference.
Classic Core-4 Portfolio
The classic core 4 portfolio introduces a REIT index fund as the fourth to the three fund portfolio. Here is the basic structure of the portfolio:
Domestic stock index fundInternational stock index fundBond index fundREIT index fund ETFAllocationVanguard Total Market ETF (VTI)36%Vanguard Total International Stock ETF (VXUS)18%Vanguard Real Estate ETF (VNQ)6%Vanguard Total Bond Market ETF (BND)40%US Classic Core 4 Moderate growth 60% Equity 40% Bonds (Vanguard