Overview
- Core allocations center on very low‑cost broad market funds such as Vanguard VOO/VTI and Schwab SCHB, where expense ratios as low as 0.03% are a key driver of long‑term performance.
- International diversification is a focal point, with Vanguard VXUS up about 24% year to date and roughly 10 percentage points ahead of the S&P 500, alongside options like VEA and VEU at similarly low fees.
- Income seekers are steered to dividend ETFs including Vanguard VYMI at roughly 4% yield and VIG around 1.6%, plus Schwab SCHD, all offering payouts above the S&P 500’s ~1.1% yield.
- For growth exposure tied to artificial intelligence, coverage favors Vanguard VGT and VUG, with the latest piece explicitly predicting VUG could outperform the S&P 500 again in 2026 while noting past results do not guarantee future returns.
- Defensive hedges feature utilities via Vanguard VPU and long‑duration Treasuries via iShares TLT, paired with caution about tech concentration and valuations near highs.