3 fund portfolio

Hi. I’m new to investing. I decided to create a DYI 3 fund portfolio. I’m based in the U.K. and I’m a bit confused what would be good finds for this kind of portfolio.
I’m thinking:

  • ishares s&p500
    -Lyxor Stoxx Europe 600
  • vanguard global aggregate bonds

I understand there are no certainties in investing, but I’m also concerned I’m making an obvious mistake by sheer ignorance.
The plan would be to invest a lump sum and then auto invest on a monthly basis .
Any thoughts on this are appreciated.

just invest in vusa its all u need

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Hi @Luisricardo13 ,

The usual advice I see around is that different people have different needs and different risk profiles. It’s always a good idea (if you haven’t already) to understand how you place yourself in that space.

Overall those ETFs you picked are the sort of thing people would recommend with varying proportions (again, according to the points above). A portfolio tracking the developed market (in your case, US and Europe separately) is thought to drift upwards with a good average annual rate over long periods time, and the mix of stocks/bonds is thought to be uncorrelated enough to compensate one another. Some people would add e.g. developing markets, to add a bit of spice.

I’d be wary of investing lump sums at the moment, but you should make your own mind about it. For example, have a look at this video that compares drip feeding and lump sum investment strategies (actually, I would recommend watching any video of this Pensioncraft channel, it’s very good!)

Good luck with your investments!

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Firstly, do you need bonds? Depending on your age and risk tolerance, you may be ok with just stocks.

Secondly, your 3 fund portfolio only has US and European stocks. Are you looking for a global approach? If so, consider Asian/Pacific areas too and emerging markets - although the latter carries a bit more risk.

Good luck.

For someone new to investing, the 3 ETFs mentioned sound reasonable to me. Starting slowly with these, with monthly contributions, is a good way to learn how different types of ETF behave. There’s a good amount of diversification, so the chances of anything disastrous happening seem slim.