Morningstar's Conservative ETF Porfolio | ETF Trends

Conservative investors in retirement can tap exchange traded funds to build all-ETF portfolios featuring stocks and bonds.

The conservative ETF investor aiming to protect wealth in retirement should limit exposure to equities and rely on the stability offered in bonds, along with other solid yield generating assets, writes Christine Benz, director of personal finance at Moringstar.

The conservative ETF portfolio is suited for retirees and pre-retirees with a 10 to 15 year time horizon, she says.

ETFs are low cost, tax efficient and easy to use investments that allow individuals to take control of their investments.

“The total costs associated with building and holding an all-ETF portfolio may still be lower than maintaining a portfolio consisting of conventional no-load mutual funds,” Benz commented.

The conservative ETF portfolio holds less than a quarter of its assets in equities and the rest in cash, Treasury Inflation-Protected Securities and other bonds.