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

In What Order Should You Tap Your Retirement Funds?
retirement planning

In What Order Should You Tap Your Retirement Funds?

Should you go with your IRA first or your brokerage account? Pulling money haphazardly can have negative implications. Instead follow this road map fo…
June 28, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
An Easy Way to Find How Much You Will Spend in Retirement
retirement planning

An Easy Way to Find How Much You Will Spend in Retirement

One simple math equation can help you determine where to start building your retirement income plan, and whether your money should last.
June 27, 2022

Recommended

Move Over ETFs: Direct Indexing Is an Investment Strategy Worth Paying Attention to
investing

Move Over ETFs: Direct Indexing Is an Investment Strategy Worth Paying Attention to

More flexibility, more control, the potential for higher returns and tax-reducing strategies: With pros like that, could direct indexing be right for …
June 25, 2022
Smart Investing in a Bear Market
investing

Smart Investing in a Bear Market

Here's how to make the most of today’s dicey market.
June 22, 2022
Is the Stock Market Closed for Juneteenth?
Markets

Is the Stock Market Closed for Juneteenth?

In 2021, Washington passed legislation turning Juneteenth into a federal holiday. As a result, investors will have the day off Monday.
June 17, 2022
Is It Time to Move to Cash? The Father of the 4% Retirement Withdrawal Rule Did.
investing

Is It Time to Move to Cash? The Father of the 4% Retirement Withdrawal Rule Did.

With markets officially in bear territory, many retirees are anxiously wondering what they should do. The man who wrote the 4% Rule recently shifted t…
June 16, 2022