The Ideal ETFs for a Balanced Retirement Portfolio

What do these Vanguard ETFs do?

Both the Vanguard Total Stock Market Index ETF and Vanguard Total Bond Market Index ETF are index-based exchange-traded funds. That means that they follow an index without any human intervention. This helps to keep costs low, with each offering ultra-low expense ratios of 0.03%. And since neither one strays from the index, the real question for investors is, what indexes are they following?

Why would you want to own these ETFs?

This pairing of Vanguard ETFs allows investors to create a very simple balanced portfolio that they can fine tune to their personal needs and risk tolerances. For many investors, the target of 60% stocks and 40% bonds will be a good start. And to achieve that, all you need to do is, at the start of the year, put 60% of your portfolio into the Vanguard Total Stock Market Index ETF, and the remaining 40% into the Vanguard Total Bond Market Index ETF. Simple and done in just two trades.

Plenty to work with, but you can do more if you want

Simply put, the Vanguard Total Stock Market Index ETF and the Vanguard Total Bond Market Index ETF give you options. They can be the only two investments you own, setting you up to benefit from the growth of the U.S. economy. Or they can be the core of your portfolio, with you doing only as much "extra" investing as you want. You probably won't brag about these two ETFs at a party, but if you own them, you'll have more time to spend doing other things you can brag about.