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Personally I'd still mix in some individual stocks, but using your criteria...
60% XLG (or QQQ if you want more tech tilt)
15% VXUS
15% SCHD
10% BND
That’s approx 75% stocks / 25% bonds. It keeps you growth-tilted with large-cap US exposure, with some international, dividends, and a small bond buffer for stability without giving up too much upside over 5yrs
What industries are you high/low on that you would want to tilt in? What index do you have the most faith in that can be used as your core?
Honestly everything has rallied so much I am confused which industry I can make money. That's why I am trying to choose index funds and avoiding investing in a sector . Rather taking balanced approach towards investing in large cap blue chip midcap and small cap so that I can get the balanced portfolio
If you're worried about sectors being overvalued after a massive rally, a balanced index portfolio is a safe bet. But if you want to be more active without directional risk, look into arbitrage.
What’s your appetite for risk?
For a long term hold where you don’t care about entry levels, I’d look at 5 themes:
1) XLK - hyper scalers, chips, ai players 40%
2) XBI - biotech, likely massive benefits from AI 20%
3) LIT - global rare earths and battery exposure 20%
4) OIH - oil field services with lots of data center exposure 10%
5) GLD - inflation hedge with low correlation 10%