Don’t Miss Out on These ETFs

You probably don't need me to tell you about Vanguard Total Stock Market or the other giant ETFs. So, let's instead look at three of the smallest gold rated ETFs. I've chosen three that are in the 400 million to 600 million range. Fidelity Limited Term Bond, ticker FLTB, occupies that useful niche of being one notch up from a money market in terms of yield, risk, and returns. It's a good place for cash you might need in the next couple of years, but it can lose money unlike a money market fund. The fund has beaten its short-term bond peers by taking on a little more credit and interest rate risk. The fund typically has low investment grade exposure of between five and 15%. It also owns asset back securities. FedE has a deep bond team to keep the fund on the right course. Vanguard US Quality Factor, ticker VFQY, is a well-designed fund that seeks highquality stocks across the market cap range. That's why it ends up in the mid blend category. The fund screens for quality factors like high return on equity, profitability, and low debt. Quality has fallen on hard times of late, but the fund has actually performed fairly well despite being out of favor. This is a fund you could buy to make your equity exposure a little more resilient in a recession. PIMCO 1 to 5year US TIPS, ticker STPZ, is a fine way to provide some inflation protection. I like short-term tips because they don't have as much interest rate risk as longerterm tips. The fund's expense ratio is just 0.2%. Be sure to put this in a tax sheltered account like an IRA because tips get taxed on all adjustments to rising inflation.