--- title: Jack Bogle's 3-Fund Portfolio Is Still the Simplest Way to Invest — but Where You Build It Decides What It Costs You description: Investing can be complicated, but it doesn't have to be. This Jack Bogle-inspired investing strategy makes the process simple. authors: - name: Marc Guberti url: https://money.com/author/marc-guberti/ bio: Marc Guberti is a personal finance writer who hosts Breakthrough Success, a podcast where he teaches listeners how to grow their businesses and achieve personal transformations. at_money_since: 2024 articles: 437 covers: - Investing - Banking - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Health and Wellness - Housing - Identity Theft - Insurance - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes published: '2026-08-18T13:28:20.000Z' modified: '2026-08-18T13:28:20.000Z' section: Investing word_count: 480 canonical: https://money.com/jack-bogle-three-fund-portfolio/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Jack Bogle wearing a tuxedo](https://img.money.com/2026/03/Explainer-Jack-Bogle-3-Fund.jpg) Vanguard founder Jack Bogle revolutionized investing by introducing simple index funds. These funds give investors instant portfolio diversification and come with low expense ratios. Bogleheads, investors who swear by Bogle’s strategies, say that investors can reach their goals with a simple three-fund portfolio made up of index funds. Here’s what to know if you’re looking for a low-effort investing strategy to help you fund your retirement and other long-term goals. ## What is the three-fund portfolio? The three-fund portfolio consists of the following funds: - A U.S.total stock market index fund, which offers broad exposure to the entire U.S. stock market - An international stock market index fund, which tracks the performance of non-U.S. stocks and can be a valuable diversifier - A U.S. bond index fund, which offers exposure to a wide variety of bonds across many sectors and maturities Vanguard offers all three of these funds, with the Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX), Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) and the Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX). But you can also buy similar funds from other providers that offer mutual funds and exchange-traded funds (ETFs), including Fidelity Investments and Charles Schwab. Read Money's best online stock trading platform picks [here](https://money.com/best-online-stock-trading-platforms/). ## Why does the strategy work? These funds are baskets of securities, which means that you’re not relying on the performance of a single stock or bond to generate returns. They offer diversification, which means that while one area of your portfolio is struggling, another should hold steady or even outperform. These funds also tend to come with low expenses. Index funds often have fees below 0.05%, while many actively managed funds have fees above 0.50%. A 0.05% expense ratio on a $500,000 portfolio comes to just $250 in annual expenses. But a 0.50% expense ratio on the same amount results in $2,500 in fees per year. Plus, the Bogleheads’ approach keeps things simple for investors. ## How to set it up the portfolio When using the three-fund portfolio, it’s important to allocate to the three funds based on your goals, time horizon and risk tolerance. Someone with decades to retirement will likely have a higher allocation to the two equity funds than someone nearing retirement. There is no hard and fast rule around allocation. Bogle said that investors’ bond allocation should roughly equal their age. For instance, a 60-year-old would allocate 60% of their portfolio in bonds. But not everyone agrees with this approach. Some investors opt for holding their age-minus-10 or their age-minus-20 in bonds. Once you set up the portfolio, your work isn’t over. It’s important to regularly review your asset allocation to ensure it’s aligned with your goals and risk tolerance. If it’s not, it’s time to rebalance, which entails selling assets that exceed the allocation you’ve assigned them, and buying assets that have fallen below their allocation threshold. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/jack-bogle-three-fund-portfolio/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Investing", "item": "https://money.com/investing/" }, { "@type": "ListItem", "position": 3, "name": "Index Funds", "item": "https://money.com/index-funds/" }, { "@type": "ListItem", "position": 4, "name": "Jack Bogle's 3-Fund Portfolio Is Still the Simplest Way to Invest — but Where You Build It Decides What It Costs You" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/jack-bogle-three-fund-portfolio/#webpage", "url": "https://money.com/jack-bogle-three-fund-portfolio/", "name": "Jack Bogle's 3-Fund Portfolio Is Still the Simplest Way to Invest — but Where You Build It Decides What It Costs You", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2026-08-18T13:28:20.000Z", "mainEntity": { "@id": "https://money.com/jack-bogle-three-fund-portfolio/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/jack-bogle-three-fund-portfolio/#breadcrumb" }, "dateModified": "2026-08-18T13:28:20.000Z" }, { "@type": "Article", "headline": "Jack Bogle's 3-Fund Portfolio Is Still the Simplest Way to Invest — but Where You Build It Decides What It Costs You", "articleSection": "Investing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2026/03/Explainer-Jack-Bogle-3-Fund.jpg", "width": 1024, "height": 680, "caption": "Explainer-Jack-Bogle-3-Fund" } ], "author": [ { "@type": "Person", "name": "Marc Guberti", "url": "https://money.com/author/marc-guberti/", "@id": "https://money.com/author/marc-guberti/#author", "description": "Marc Guberti is a personal finance writer who hosts Breakthrough Success, a podcast where he teaches listeners how to grow their businesses and achieve personal transformations.", "worksFor": { "@id": "https://money.com/#organization" } } ], "publisher": "https://money.com/#organization", "datePublished": "2026-08-18T13:28:20.000Z", "description": "Investing can be complicated, but it doesn't have to be. 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