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Asset allocation

The way an investment portfolio is divided among various asset classes, such as stocks, bonds, and cash. Also known as investment mix.

Create a well-balanced, globally diversified portfolio



Broad diversification

Gain access to more than 25,000 U.S. and international stocks and bonds. This global diversification gives you even more opportunities for growth while helping to reduce your overall risk.

Lower minimums

Buy an ETF for as little as $50 per share vs. $3,000 for a typical Vanguard mutual fund.

Compare ETFs vs. mutual funds

Easy to manage

Save time vs. spending hours researching and choosing individual stocks and bonds.

You can do this! Here's how.

Here's a hypothetical example if you were aiming for a portfolio of 70% stocks and 30% bonds.

Research has shown that your asset allocation is responsible for about 90% of your portfolio performance.*

Break your stock and bond allocations into U.S. and international investments. You might want to consider investing 40% of your stock allocation and 30% of your bond allocation internationally.

pie chart of hypothetical asset allocation

Prefer to pick and choose? No problem!

Use these 4 funds individually, review a short list of Vanguard Select ETFs, or choose from dozens of Vanguard ETFs to round out your portfolio. It's your call.

*Source: Vanguard, The Global Case for Strategic Asset Allocation and an Examination of Home Bias (Scott et al., 2017).

You must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services (we offer them commission-free) or through another broker (which may charge commissions). See the Vanguard Brokerage Services commission and fee schedules for full details. Vanguard ETF Shares are not redeemable directly with the issuing fund other than in very large aggregations worth millions of dollars. ETFs are subject to market volatility. When buying or selling an ETF, you will pay or receive the current market price, which may be more or less than net asset value.

All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss. Investments in bonds are subject to interest rate, credit, and inflation risk. Investments in stocks and bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk.