Thread by @financefelix

Most traders spend hours managing 15+ positions every week.

I spent years as a banker and learned this is one way the wealthy build their portfolio: 3 ETFs, 15 minutes quarterly, better returns than full-time traders.

Here's the modernized approach to getting rich 🧵

PART 1: Why the Traditional 3-Fund Portfolio is Broken

The classic approach was: US stocks, international stocks, and bonds.

But the financial landscape has changed dramatically.

Big Tech reshaped indices and bond yields hit historic lows.

The old system has three major flaws:

• Traditional US funds miss high-growth sectors
• Low bond yields provide little income or stability
• US/international separation creates overlap, reducing diversification benefits

Time for an update.

PART 2: The Modern 3-ETF Solution

Enter ETFs: lower costs, greater transparency, and precision targeting.

My updated portfolio uses three carefully selected categories:

1. Foundational ETF (broad market stability)
2. Dividend ETF (income generation)
3. Growth ETF

Component 1: The Foundational ETF

Your bedrock investment. I like VTI (Total Stock Market) or VOO (S&P 500).

VTI covers the entire US market—small, mid, and large caps. VOO focuses on the largest 500 profitable companies.

Both have ultra-low fees: 0.03% expense ratios.

Component 2: The Dividend ETF

Replaces traditional bonds by focusing on dividend-paying stocks.

Options like VYM or SCHD provide steady income while offering capital appreciation potential.

Component 3: The Growth ETF

Captures high-growth sectors and innovative companies.

QQQ ETF tracks NASDAQ 100 (tech-heavy, 0.2% fee) while VUG offers broader growth exposure (0.04% fee).

Both have significantly outperformed the broader market over the last 10 years.

Selecting the right growth ETF is crucial for wealth building.

The gap between 8% and 12% returns compounds massively over time.

Most investors focus too heavily on safety, missing substantial upside that quality growth exposure delivers for long-term performance.

Interested in hearing more about optimizing your growth ETF selection?

I've recorded an 22-minute video covering it.

Follow and comment "PORTFOLIO" and I'll DM it to you as soon as possible.

Now that all three components are covered, we need to address allocation.

Your age and risk tolerance determine the ideal balance.

This mix should evolve through different life stages, emphasizing growth early on and gradually shifting toward income as retirement approaches.

PART 3: Smart Allocation by Age

Don't just split everything equally. Tailor to your timeline:

20s-30s: 40% foundational, 20% dividend, 40% growth
40s-50s: 40% foundational, 30% dividend, 30% growth
60s+: 35% foundational, 45% dividend, 20% growth

The key question:

"Does this allocation let me sleep well at night while still moving toward my financial goals?"

Someone in their 50s with high risk tolerance might prefer the younger allocation.

A risk-averse 30-year-old might lean conservative.

PART 4: Implementation Strategy

Step 1: Assess your current situation and financial goals
Step 2: Choose one ETF from each category
Step 3: Determine your target allocation
Step 4: Open/update your brokerage account
Step 5: Set up automatic monthly investments

Review quarterly, rebalance annually.

When one category underperforms, direct fresh money there—you'll buy cheaper and maintain balance.

The most vital thing?

Consistent contributions.
Consistency beats complexity every single time.

Most people overcomplicate investing with dozens of funds.

This 3-ETF approach is elegantly simple: broad market stability, dividend income, and growth potential.

Only three tickers to track. Maximum simplicity, maximum results.

What's stopping you from starting?