The Only 3 ETFs That Beat 90% of Investors

About this video

• Video Title: The Only 3 ETFs That Beat 90% of Investors
• Channel: Finance with the Carters
• Speakers: Chris (implied narrator)
• Duration: 16:03

Overview

This video argues that a simple portfolio of three Exchange Traded Funds (ETFs) can outperform most investment strategies and lead to significant wealth accumulation over time. It debunks the idea that complex strategies are necessary for success, emphasizing the power of diversification, low costs, and consistent investing. The video outlines specific ETFs, allocation percentages based on age, and provides data to support the effectiveness of this approach, especially during market downturns.

Key takeaways

• Simplicity Beats Complexity: Contrary to popular belief, complex investment strategies often lead to worse results due to increased fees, trading, and emotional decision-making. A simple three-ETF portfolio is mathematically superior and easier to stick with.
• Three Core ETFs: The recommended portfolio consists of:
  • US Stock Market Foundation: Vanguard Total Stock Market ETF (VTI) for broad US market exposure (50-70% allocation).
  • International Diversification: Vanguard Total International Stock ETF (VXUS) for global exposure and reduced volatility (15-30% allocation).
  • Stability and Income: Vanguard Total Bond Market ETF (BND) for stability, income, and rebalancing opportunities (10-40% allocation).
• Data-Backed Performance: This three-ETF approach has historically provided solid returns, outperformed the S&P 500 during market crashes, and has never lost money over any 15-year period.
• Consistent Investing is Key: The strategy emphasizes regular, automated investments and annual rebalancing, rather than market timing or frequent adjustments, to harness the power of compound growth.
• Low Costs Matter: The combined expense ratio of these ETFs is under 0.04%, leading to significant savings over time compared to actively managed funds.