In the latest edition of his “ETF Academy” series, Bruce Sellery of MoneySense discusses the number of ETFs that investors should have in their portfolio, along with the various ways in which they can be managed.

The most common strategy, as explained by Sellery, is strategic asset allocation, in which just four ETFs can constitute for a diversified and low-cost portfolio. Another strategy is tactical asset allocation, a more active method of investing in which frequent position changes are made to account for market fluctuations.

The third and final method is “Core and Explore,” in which basic ETFs make up the majority of a portfolio (the “core”), with the remaining portion used to “explore” ETFs that can focus on emerging markets, small caps, or specific sectors.

Watch the full video below: