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
Benefit 1: No Advisor Risk 14
Benefit 2: No Asset Bloat 17
Benefit 3: No Index Front Running 19
Benefit 4: No Fund Manager Risk 20
Benefit 5: No Individual Stock Risk 22
Benefit 6: No Overlap 24
Benefit 8: No Style Drift 26
Benefit 9: Low Tracking Error 27
Benefit 10: Above-Average Return 28
Benefit 11: Simplified Contributions and Withdrawals 32
Benefit 12: The Benefit of Consistency 33
Benefit 13: Low Turnover 34
Benefit 14: Low Costs 35
Benefit 15: Maximum Diversification (lower risk) 38
Benefit 16: Portfolio Efficiency (best risk/return ratio) 39
Benefit 17: Low Maintenance 40
Benefit 18: Easy to Rebalance 41
Benefit 19: Tax Efficiency 42
Benefit 20: Simplicity (for investors, caregivers, and heirs) 44
Chapter 5 Getting Started 49
Chapter 6 Stay the Course 59
Appendix I: What Experts S Ay 63
Appendix II: Meet the Bogleheads 69
Glossary of Financial Terms 75
Index 79
