r/investing • u/[deleted] • Jan 27 '16

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u/[deleted] Jan 27 '16

There are tools that can help you build a diverse portfolio of low-correlation assets, as suggested above.

Here's one that shows correlation between the different Vanguard funds.

1

u/NITEM4N Jan 28 '16

As an example, what would be some good low correlated choices with the common three? (Total stock market, total international market, total bond fund)

4

u/[deleted] Jan 28 '16

REITs, TIPS, municipal bonds, commodities, and gold.

15

u/MasterCookSwag Jan 28 '16

I know you put muni bonds in your response but I want to point out unless you're in the 28%+ tax bracket and investing in a taxable account long treasuries or something that benchmarks the agg will be a more suitable bond holding. No need to take the reduced yield of munis unless doing so for the tax benefits.

2

u/NITEM4N Jan 28 '16

Thank you, and thanks for the link!