The three funds and what each holds
| Fund | What it holds | Example ticker |
|---|---|---|
| US total stock market | Every US public company, large and small | VTI |
| International total stock market | Developed and emerging markets outside the US | VXUS |
| US total bond market | Thousands of investment-grade US bonds | BND |
A starting mix of the three funds by age
A common starting mix by age: a 25-year-old might hold roughly 60% VTI / 30% VXUS / 10% BND; a 45-year-old 50 / 25 / 25; a 65-year-old 35 / 15 / 50 -- more bonds as the horizon shortens. These are starting points, not gospel: the bond slice is really a function of your time horizon and how well you sleep during a crash.
Model a three-fund mix in your portfolio
In the **Portfolio** view, model a simple three-fund mix -- say 60% VTI, 30% VXUS, 10% BND -- and look at the blended picture. You now hold thousands of companies across just three holdings.
Why the three-fund portfolio wins
Its edge over picking individual stocks
What's the main advantage of a three-fund portfolio over picking 20 individual stocks?
Check your understanding
Sit with the ideas.
A three-fund portfolio is VTI + VXUS + BND. What do those three cover, together?
Why: