The Bogleheads' Guide: Three Funds, One Strategy
Nine in ten active fund managers lose to the index over 15 years. Bogle's heirs argue you should stop trying to be the tenth. The UK ISA build-out is shorter than you'd think.
UK Boglehead three-fund example portfolio
| Sleeve | Example fund | Typical OCF |
|---|---|---|
| UK equity | Vanguard FTSE UK All Share Index | 0.06% |
| Global equity | Vanguard FTSE All-World UCITS ETF | 0.22% |
| Bonds | Vanguard UK Government Bond Index | 0.12% |
Three funds, total cost well under 0.25%. Hold for decades. Rebalance once a year.
Key takeaways
The Bogleheads' Guide to Investing emphasizes simple, low-cost, diversified portfolios using index funds over active management.
A three-fund portfolio with domestic stocks, international stocks, and bonds is recommended for broad diversification.
Simplicity in investing leads to lower costs, reduced complexity, and better behavioural outcomes over the long term.
UK investors can adapt the Boglehead philosophy using ISAs and SIPPs instead of US-centric accounts.