Investment vehicles
Update August 2, 2020
The following table lists recommended investment categories, including our picks for the best fund in each category (we do not receive any
compensation for these recommendations). We've provided historical annual returns for these categories along with expected returns
for the next decade, as compiled from a handful of expert sources, as of August 2, 2020. Actual returns may differ significantly from these expectations; no one can
predict such things consistently and accurately.
Please notice the rightmost column which provides a recommended upper limit on how much you should invest in these categories.
This article containts a simple, high-level discussion of major asset classes.
| Category | Fund | Historical Annual Returns | Expected Annual Returns (next decade) | Max Recommended Allocation |
|---|
US Stocks |
VTI |
11% |
6% |
85% |
International Stocks |
VXUS |
5% |
9% |
45% |
Real Estate |
VNQ |
9% |
5% |
25% |
20+ Year US Treasury Bonds |
TLT |
5% |
1% |
40% |
7-10 Year US Treasury Bond |
IEF |
4% |
1% |
35% |
Treasury Inflation-Protected Bonds |
VTIP |
<1% |
1% |
15% |
Gold |
IAU |
11% |
6% |
10% |
Cryptocurrency |
BTC |
>300% |
N/A |
3% |
Please click here for a more complete list of investment options.
| 