The iShares MSCI Emerging Markets ETF (NYSEArca: EEM), which tracks the MSCI EM Index, and Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO), which reflects the performance of the FTSE Emerging Index, are the two largest emerging market-related ETFs on the market. VWO, though, excludes South Korea since FTSE categorizes the country as developed. VWO has a 0.15% expense ratio and EEM has a 0.67% expense ratio.

Lastly, for commodities exposure, the GreenHaven Continuous Commodity Index Fund (NYSEArca: GCC) follows an equal-weight methodology for its 17 commodity positions. In addition, the PowerShares DB Commodity Index Tracking Fund (NYSEArca: DBC), the largest commodity-related ETF and tracks a broad basket of the 14 most heavily traded commodities, uses an optimum yield methodology that tries to limit the negative effects of contango. GCC and DBC have a 0.85% expense ratio.

“Note that these portfolios aren’t designed to shoot out the lights over short time frames,” Benz said. “Rather, the goal is to depict sensible asset-allocation mixes for investors at varying life stages.”

Nevertheless, one should not completely set-and-forget these types of portfolios. Over time, the portfolio positions can shift, so investors should not forget to annually, if not regularly, rebalance positions. [Don’t Forget to Rebalance Your ETF Portfolio]

For more information on investing toward retirement, visit our retirement category.

Max Chen contributed to this article.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.