2 US ETF Portfolio
Previously I have revealed that is you want only one ETF portfolio then you can go ahead with VOO because that gives you the full market exposure. Now if you want more returns than the S&P 500 i.e. VOO then you can go with the 2 ETF portfolio. In this 2 ETF portfolio, you have to have 1 ETF with high growth potential and other with dividend.
So if you want to have 2 ETF portfolio then you can go with VUG and DGRO. The combination of both the growth and dividend will give you higher returns than the VOO as well as it will give you more dividend than the VOO. Now you might think that having a growth ETF is risky. But actually when you have 60% VUG that is growth ETF and 40% DGRO i.e. Dividend ETF then it will not be risky because then your volatility will be reduced and you get higher returns and dividends.
Actually there are 2 types if investors. One who invests in Index Fund and other who pick stocks and try to beat the index. But there should be a 3rd type of investor who should create the portfolio using the growth ETF or any other ETF using which you can beat the index. Now with the combination of ETFs you are not taking much risk and also beating the index. Now it's upto you, how you want to create that 2 ETF portfolio.
For me having a Growth ETF and Dividend ETF is great. You can change the percentage based on your risk appetite. Means if you want stability, having 50% VUG & 50% DGRO. If you want high risk and having longer time frame then go for 70% VUG & 30% DGRO. In this way you can have much higher returns then VOO.
Posted Using INLEO
Great portfolio idea! Do you think this VUG and DGRO combo can actually outperform the S&P 500 in the long run?
I tested the last 10 years data and this combination has actually outperformed the S&P500
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