An aggressive ETF portfolio for young investors

Time is on your side for building wealth and recovering from downturns.

John Gabriel 13 March, 2015 | 5:00PM

Note: This article is part of Morningstar's March 2015 ETF Investing Week special report.

A few decades ago, retirees could reasonably hunker down in GICs and other safe investments and generate a livable income. But that formula has been turned on its head for today's retirees. With cash and bond yields as low as they are, as well as the fact that many retirees could be drawing on their portfolios for a few decades or more, sticking with the safe stuff just isn't going to cut it unless you have a very high level of wealth.

As such, I wanted to share a more aggressive hypothetical ETF portfolio for younger investors in the accumulation stage of their investment lifecycle. Investors should take advantage of their youth by taking more risk early on. Time is on your side for compounding wealth and recovering from any downturns. After all, nobody wants to find themselves in a position where they feel forced to take on excessive risks a couple years away from retirement. The earliest years in the investment lifecycle is the time to take on more risk in an effort to capture greater returns.

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John Gabriel

John Gabriel  John Gabriel is a strategist for Morningstar’s manager research team.

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