Timeless and Simple: Funds to Build the Foundation of Your Portfolio

Last week we talked about robo-advisors, discount brokers and Vanguard. Once you decide WHERE, it's time to decide WHAT to buy. Here are some tested options for funds to consider.

1. Vanguard Total Stock Market Index Fund (VTSAX)
- Type: U.S. Total Stock Market
- Expense Ratio: 0.04%
- Description: This fund gives investors exposure to the entire U.S. stock market, including large-, mid-, and small-cap stocks. It's a great core holding for anyone who wants broad exposure to U.S. companies.
- ETF version: Vanguard Total Stock Market ETF (VTI)

2. Fidelity ZERO Total Market Index Fund (FZROX)
- Type: U.S. Total Stock Market
- Expense Ratio: 0.00%
- Description: As part of Fidelity's "ZERO" series, this fund offers exposure to the U.S. total stock market at no cost. It's an attractive option for fee-conscious investors looking for broad diversification at zero expense.

3. Vanguard S&P 500 Index Fund (VFIAX)
- Type: U.S. Large Cap Stocks
- Expense Ratio: 0.04%
- Description: This fund tracks the S&P 500, which consists of 500 of the largest publicly traded U.S. companies. It's ideal for investors who want exposure to the largest and most established U.S. companies.
- ETF version: Vanguard S&P 500 ETF (VOO)

4. Schwab U.S. Broad Market ETF (SCHB)
- Type: U.S. Total Stock Market
- Expense Ratio: 0.03%
- Description: Similar to Vanguard's Total Stock Market fund, this Schwab ETF provides broad exposure to the entire U.S. stock market at an even lower cost, making it a good alternative for cost-conscious investors.

5. Vanguard Total International Stock Index Fund (VTIAX)
- Type: International Stocks (Developed and Emerging Markets)
- Expense Ratio: 0.11%
- Description: This fund offers exposure to international stocks across both developed and emerging markets, providing diversification outside the U.S.
- ETF version: Vanguard Total International Stock ETF (VXUS)

7. Vanguard Total Bond Market Index Fund (VBTLX)
- Type: U.S. Bond Market
- Expense Ratio: 0.05%
- Description: This fund gives you exposure to the entire U.S. bond market, including government, corporate, and mortgage-backed securities. It's a great way to balance out the volatility of stocks in a diversified portfolio.
- ETF version: Vanguard Total Bond Market ETF (BND) 

## Something BOLD

These index funds and ETFs offer broad diversification, low expense ratios and simplicity.

But, don't take my word for it.

"A low cost index fund is the most sensible equity investment for the great majority of investors. My mentor, Ben Graham, took this position many years ago, and everything I have seen since convinces me of its truth." — Warren Buffett

"The public would be better off in an index fund." — Peter Lynch, arguably one of history's greatest mutual fund managers.

"It should come as no surprise that behavioral finance research makes a strong case for buying and holding low cost, broadly diversified index funds." — American Association of Individual Investors

"Keep it simple. Make index funds the core, or all of your portfolio." — The Bogleheads' Guide to Investing

"Standard & Poor's 500 stock index returned 9.1% for the 20 year period through 2010, but the average investor in stocks earned just 3.8%." — Dalbar study.

"The low cost index fund is one of the most useful financial inventions in history. Boring but beautiful." — Morgan Housel

"Simple buy and hold index investing is one of the best, most efficient ways to grow your money." — Michael Lebouf, PhD., author

"Index funds are favored by Nobel Prize winning economists, Warren Buffett, John Bogle, Charles Schwab, all academics, the largest U.S. pension funds, and almost every fiduciary adviser." — Paul Merriman, author and adviser

"Most people should simply have index funds so they can keep their fees low and their taxes down." — Jack Meyer, CEO, Harvard Management

"Most investors should simply invest in index funds." — Robert Rubin, Secretary of the Treasury

"Buy index funds. It might not seem like much action, but it's the smartest thing to do." — Charles Schwab

"Over the long-term the superiority of indexing is a mathematical certainty." — Jason Zweig, author and Wall Street Journal columnist.