The ultimate mutual fund portfolio

Our collection of five funds and five ETFs provides broad diversification and leaves the hard work to some of the savviest managers in the business.

1 of 5
Schwab Total Stock Market Index
Schwab Total Stock Market Index
Jeff Mortimer
Ticker: SWTIX
1-year return: -30.3%
5-year return: -0.8%
Expense ratio: 0.09%
ETF alternative: Vanguard Total Stock Market (VTI)

Since keeping costs low is a cornerstone principle of our portfolio, we've picked the Schwab Total Stock Market Index fund over Fidelity's comparable offering from last year's roster.

Both track the Dow Jones Wilshire 5000, which lets investors own the broad U.S. stock market, but last month Schwab cut its expense ratio to 0.09% and slashed the minimum investment to $100 (compared with 0.10% and $10,000, respectively, for the Fidelity fund).

"We're going to be competitively priced, because we know that index products are commodities," says Jeff Mortimer, the CIO of Charles Schwab's asset management arm who is also a co-manager of the fund.

For an ETF alternative (with the same fee), there's the Vanguard Total Stock Market ETF, which tracks the MSCI U.S. Broad Market index.

NEXT: Dreyfus Appreciation
Last updated June 15 2009: 11:01 AM ET
Email | Print | Share  |  RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all RSS FEEDS (close)
Data as of June 1, 2009. Five-year return is annualized.
More Galleries
5 biggest share buybacks of 2014 Stock repurchases are booming. These five companies are ready to spend over $79 billion on buybacks. More
10 horrifying corporate mascots McDonald's Happy is part of a long lineage of creatures great and small that shill for products and mortify consumers. Mr. Mucus, anyone? More
5 best cities to launch a career The top spots in the U.S. for new grads to land a job -- and actually enjoy life -- according to financial site WalletHub. More