Thu Apr 03 2025, by Tyler Gardner

How to Design a Portfolio for Growth and Stability

Here’s exactly how I would design a portfolio for growth and stability. I’m Tyler, a former financial advisor and portfolio manager, and I create financial content for free to help you navigate your investment decisions.

1. Invest in a US Total Stock Market Fund

40% of the portfolio would go to a US total stock market fund to gain broad exposure to US stocks. I’d recommend a fund like Vanguard's Total Stock Market ETF (VTI), which includes everything from Apple to small startups.

2. Allocate to Bonds

30% would be allocated to bonds. I know I don’t love bonds, but that doesn't mean they aren't right for you. Bonds can help to smooth the ride during times of volatility. A fund like iShares Core US Aggregate Bond ETF (AGG) can keep your portfolio stable while earning interest.

3. Diversify with International Stocks

20% would go to international stocks. A fund like Fidelity's International Index Fund (FSPSX) provides global diversification beyond US markets.

4. Invest in Real Estate or REITs

The final 10% would be directed toward real estate or REITs. This is an easy way to invest in income-generating properties through a fund like Vanguard's Real Estate ETF (VNQ).

Conclusion

This portfolio is designed for consistent returns without extreme volatility. If any of this information is helpful, please sign up for my newsletter by clicking the link in my bio. Every Sunday morning, I’ll send you over more portfolio allocation strategies.

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