A Conservative ETF Bucket Portfolio for Retirement
This ETF-oriented portfolio is ideal for retirees with shorter time horizons.
Investing Specialists
Mentioned: Loomis Sayles Bond Instl (LSBDX)
, PIMCO Total Return Instl (PTTRX)
, Vanguard High-Yield Corporate Inv (VWEHX)
, Fidelity® Floating Rate High Income (FFRHX)
, Vanguard Total Stock Market ETF (VTI)
, WisdomTree Emerging Markets Lcl Dbt ETF (ELD)
, SPDR Blackstone Senior Loan ETF (SRLN)
, PIMCO Active Bond ETF (BOND)
, Vanguard Short-Term Infl-Prot Secs ETF (VTIP)
, iShares Core Total USD Bond Market ETF (IUSB)
Safety and quality are the watchwords of my conservative bucket portfolio, geared toward older retirees with a time horizon of 15 years or fewer.
As such, the portfolio features sizable allocations to cash and short- and intermediate-term bonds, both nominal and inflation-protected. But because 15 years is still a reasonably long time horizon, the portfolio also includes a decent-size equity position, as well as exposure to more economically and credit-sensitive bond holdings such as high-yield and floating-rate funds.
Christine Benz does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.