- Dec 2, 2011
Thoughts on where to park the proceeds of a house sale for 3 to 5 years? Probably not willing to do anything high risk but CDs are really bad now.
I’d go with one or more of the large, low management fee ETFs. Especially the Vanguard Group’s. QQQ, SPY, DIA, VTI, VOO, VEA, VTV, VUG, VO, BND. Maybe a couple of Select Sector Fund ETFs like XLF or XLV or XLE. Materials and Industrials (XLB and XLI) should have good support with an expected long cycle of increased federal infrastructure spending although the industry specific stocks within those funds have already done well and being overly concentrated there increases risk.
To take out some risk you could average in to equity funds with 5% to 15% spread out monthly over a year or more. The nature of those ETFs reduces the securities risk with the built in diversification but the overall market risk will remain. BND being a bond fund will generally move opposite to interest rates. Banks and Financials should generally do well with interest rate hikes (XLF).
Likes: 3rdDegreeVol and DocVOLiday