For purposes of smart portfolio construction, a wise move might be to use all three ETFs – AGG as the core holding, which would receive the highest allocation percentage, and ZROZ and PHB as satellite holdings, each receiving relatively lower allocation percentages.
This way you may minimize risk while optimizing return.
Kent Thune is the owner of an investment advisory firm in Hilton Head Island, S.C. He personally does not hold any of the aforementioned securities, although he holds AGG for some client accounts. Under no circumstances does this information represent a recommendation to buy or sell securities.
This article is brought to you courtesy of Kent Thune from Wyatt Research.