11. Putting It All Together: Building a Three Paths ETF Portfolio
Building a portfolio is a personal matter. Investors have different objectives and different tolerances for risk. Investors need to know themselves in terms of their own risk profile. The suggested portfolios in this chapter are just that—suggestions. Three categories of portfolios are described here: conservative (lower risk), balanced (moderate risk), and aggressive (higher risk). All of these portfolios involve some risk of loss of principal, as does any investment in the stock market. Because all of the described portfolios are made up of ETFs, investors do get the benefit of diversification. Remember, diversification is a two-edged sword. Diversification is a tool of capital ...
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