CNBC has introduced all-ETF diversified portfolios designed to help investors of varying ages reach their retirement goals.
The portfolios include ETFs tracking U.S. stocks, bonds, international stocks and bonds, and commodities.
“Why ETFs? One reason is diversification,” Pisani writes at CNBC.com. He explains that the liquid and tradable baskets of securities have made it easy to buy a wide array of asset classes such as gold, oil, Japanese stocks and emerging market bonds, with one trade.
“The ETF business has grown exponentially in the past decade,” Pisani notes. “In addition to diversification, ETFs provide lower costs and better portfolio transparency, and are more tax efficient than most mutual funds. For active traders, the ability to trade during the day is the clincher.”
CNBC and its advisory council have launched a trio of ETF retirement portfolios:
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