Bogleheads' Three-Fund Portfolio: The UK Version
You do not need 12 funds, a wealth manager or a strong view on emerging markets. The Bogleheads' three-fund portfolio quietly beats most pros. The UK ISA version is leaner still.
UK three-fund portfolio: example allocation
| Sleeve | Example fund | Weight |
|---|---|---|
| UK equity | Vanguard FTSE UK All Share Index | 20% |
| Global equity | Vanguard FTSE All-World (ex-UK) | 60% |
| Bonds | Vanguard UK Government Bond Index | 20% |
All three under 0.25% OCF. Adjust the bond sleeve up as you approach retirement.
Key takeaways
The three-fund portfolio uses three index funds: domestic equity, international equity, and bonds for a diversified, low-cost investment strategy.
Three funds can outperform most professionally managed portfolios, leading to better long-term investment outcomes.
Lower costs and reduced complexity make the three-fund portfolio a simpler and more effective way to invest.
UK investors can use ISAs and SIPPs to implement the three-fund portfolio with tax benefits.