Additionally, the iShares Core ETFs provide annual expense ratios of 0.07% to 0.18%.
The iShares Core ETFs include:
- iShares Core S&P 500 ETF (NYSEArca: IVV)
- iShares Core S&P Mid-Cap ETF (NYSEArca: IJH)
- iShares Core S&P Small-Cap ETF (NYSEArca: IJR)
- iShares Core S&P Total U.S. Stock Market ETF (NYSEArca: ITOT)
- iShares Core MSCI Emerging Markets ETF (NYSEArca: IEMG)
- iShares Core MSCI EAFE ETF (NYSEArca: IEFA)
- iShares Core MSCI Total International Stock ETF (NYSEArca: IXUS)
- iShares Core Total U.S. Bond Market ETF (NYSEArca: AGG)
- iShares Core Long-Term U.S. Bond ETF (NYSEArca: ITLB)
- iShares Core Short-Term U.S. Bond ETF (NYSEArca: ISTB)
Rawson believes that a diversified core portfolio of ETFs only requires three out of the 10 holdings: ITOT at 30%, IXUS 30% and AGG 40%. This would create a basic 60/40 stocks/bonds investment portfolio with a weighted average expense ratio of 0.10%. Historically, the hypothetical portfolio of ITOT, IXUS and AGG would have returned 6.5% per year over the last 15 years.
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.