3 Great Funds for the Next 10 Years
These are volatile times for investing, with rapid market swings affecting both stocks and bonds. While predicting the next six months is difficult, long-term goals require long-term strategies. Here are three funds with strong fundamentals that may reward investors over the next decade, all with a global diversification focus.
1. Vanguard International High Dividend Yield Fund
This fund offers a low-cost, diversified approach to dividend investing outside the U.S. It tracks an index of higher-yielding international dividend stocks but weights them by market capitalization rather than by yield.
Key Features
- Focuses on the higher-yielding half of dividend stocks internationally
- Market-cap weighting reduces exposure to high-risk, unsustainable yields
- Provides stability over chasing maximum income
Rating: Silver
2. T. Rowe Price Global Allocation Fund
This fund adds another layer of diversification by including bonds and alternative assets. Managed by Charles Shriver and Toby Thompson, it spreads investments across a carefully selected group of portfolio managers.
Key Features
- Portfolio allocation: 60% stocks, 28% bonds, 12% alternatives
- Lower potential returns compared with pure equity funds, but also lower risk
- Excellent global diversification strategy
Rating: Gold
3. American Funds Global Balance Fund
This fund combines dividend-paying stocks with a bond portfolio, offering a balanced approach. American Funds has a strong track record in long-term management and dividend strategies, ensuring smooth transitions as managers retire.
Key Features
- Focus on dividend-paying stocks while avoiding value traps
- Blend of equities and bonds for balanced growth and income
- Deep research and stable management provide long-term reliability
Rating: Silver
Final Thoughts
Investing during volatile times requires patience and a long-term perspective. These three funds offer global diversification, a mix of equities and bonds, and solid management strategies. By considering a blend of stability, income, and growth potential, you can position your portfolio for the next decade with confidence.