Investor Psychology

5 Best Moves for Your Portfolio

Follow these steps to help maximize your portfolio's earning power.

These portfolio moves will help boost the income you get from your portfolio, shield it from inflation and make it less volatile, too.

Getty Images

Dial down volatility. Stocks with low volatility should weather dips better than jiggier peers. Invesco S&P 500 Low Volatility ETF (symbol SPLV, $48) holds the 100 stocks in the blue-chip index with the lowest volatility; iShares Edge MSCI Min Vol USA ETF (USMV, $55) tracks low-vol stocks by sector.

Fight inflation. The principal value of Treasury inflation-protected securities adjusts according to changes in the consumer price index. Buy them from Uncle Sam at www.treasurydirect.gov or consider Vanguard Inflation-Protected Securities Fund Investor Shares (VIPSX).

Plump up your yield. SPDR S&P Dividend ETF (SDY, $93) holds the highest-yielding stocks of large companies that have raised their payouts for the past 25 years. The fund yields 2.5%. First Trust NASDAQ Technology Dividend Index ETF (TDIV, $36) buys tech’s biggest dividend payers and yields 2.5%.

Play rising rates. Higher rates mean lower bond prices, but they hurt short-term bonds least. Consider low-cost Schwab Short-Term Bond Index (SWSBX). Or cash in on higher rates with Fidelity Floating Rate High Income (FFRHX).

Cut costs. Fidelity Zero index funds charge no fees and require no minimum investment. You must be a Fidelity brokerage customer.

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
4 Strategies to Reduce Taxes in Retirement
retirement planning

4 Strategies to Reduce Taxes in Retirement

Don’t let the possibility of higher taxes in the future sink your retirement income plan. Consider these four ways to help manage your taxes, keeping …
May 31, 2021
10 States With the Highest Sales Taxes
Tax Breaks

10 States With the Highest Sales Taxes

Before you embark on a shopping spree in any of the 10 worst states for sales taxes, make extra room in your budget.
June 16, 2021

Recommended

What’s So Great about Diversification?
investing

What’s So Great about Diversification?

Balancing out the risks and rewards of your investment portfolio is always a good idea. Here are the basics of diversification and the different asset…
June 18, 2021
Will the Stock Market Close for Juneteenth?
Markets

Will the Stock Market Close for Juneteenth?

Washington has passed legislation turning Juneteenth into a federal holiday, with immediate effect. Will the stock market close in observance?
June 17, 2021
Stock Market Holidays in 2021
Markets

Stock Market Holidays in 2021

Is the stock market open today? Take a look at which days the NYSE, Nasdaq and bond markets take off in 2021.
June 17, 2021
6 AI Stocks to Watch for Rapid Growth
investing

6 AI Stocks to Watch for Rapid Growth

Artificial intelligence is becoming more ingrained in our everyday lives. Here are six names that could profit on this quickly expanding space.
June 15, 2021