Published on 23 May 2024 on Motley Fool via Yahoo Finance
Investing doesn't have to be complicated. A simple portfolio of exchange-traded funds (ETFs) may be all you need to produce excellent returns over the long run.
Many people will allocate their entire stock portfolio to an S&P 500 or total stock market index fund. And while that can be a great foundation for any portfolio, history suggests investors will do well by tilting their holdings toward small-cap value stocks. That means putting more money in smaller companies trading at cheap valuations than you'd get by investing in a total stock market index fund.