This recommended investment portfolio is one of 20+ mutual fund portfolios that we've assembled for investors with different time horizons and risk-tolerance levels to consider. Visit our Portfolio Finder to see them all. View Another Investment Portfolio: Aggressive ETF Portfolio Balanced ETF Portfolio Balanced Mutual Fund Portfolio Contrarian ETF Portfolio ETF Portfolio for Growth and Income ETF Portfolio for Long-Term Growth Fidelity Moderate ETF Portfolio High-Income Combo Portfolio High-Yielding ETF Portfolio Higher Risk, Higher Yield ETF Portfolio Higher Risk, Higher Yield Mutual Fund Portfolio Kiplinger 25 for College: 6-10 years away Kiplinger 25 for Income: 5 Years or less Kiplinger 25 for Retirement: 11+ years away Lower Risk, Lower Yield ETF Portfolio Lower Risk, Lower Yield Mutual Fund Portfolio Multi-Asset ETF Portfolio Multi-Asset Mutual Fund Portfolio Overseas Portfolio for ETF Investors Schwab Growth ETF Portfolio Super-Simple Balanced Mutual Fund Portfolio Tax-Exempt Income Portfolio Vanguard Conservative ETF Portfolio Vanguard Index Funds to Buy and Hold Forever Multi-Asset ETF PortfolioGet some detachment from the direction of stocks and bonds with alternative asset classes. 70% Stocks | 10% Bonds | 20% Alternative | Data through January 31, 2019 FUND NAME SYMBOL % OFPORTFOLIO YTDRETURN 1-YRRETURN 3-YRRETURN 5-YRRETURN 10-YRRETURN MAX LOAD EXPENSE RATIO Vanguard Intermediate Term Bond Index ETFBIV10%1.44%2.9%2.01%2.77%4.74%none%0.07% AGFiQ U.S. Market Neutral Value FundCHEP52.24-11.91-2.34-3.36—none1.12 iShares Core MSCI Emerging Markets ETFIEMG58.35-14.4414.24.56—none0.14 iShares DJ US Real Estate IndexIYR2011.419.799.159.1614.87none0.43 IQ Merger Arbitrage ETFMNA51.832.54.884.01—none0.76 United States Commodity Index Fund, LPUSCI103.13-10.87-0.71-7.14—none1.04 Vanguard Europe Pacific ETFVEA157.34-12.428.073.268.52none0.07 Vanguard Total Stock Market ETFVTI308.6-2.1814.2410.415.18none0.04 1007.03-2.548.275.279.27 0.33 ** Closed to new investors. # Closed to new investors; other share classes are available. r Maximum redemption fee charged when you sell shares. s Front-end load; redemption fee may apply. — Fund has not existed for the specified time. Source: Morningstar, Inc.. The mutual fund industry has produced a slew of alternative offerings in recent years. The category includes a hodgepodge of diverse strategies, so choosing the right one is key. We leavened our mix of 50% stock funds, and 10% intermediate-term bonds with 20% of real estate trusts, a fund that invests in commodities, and two pure alternatives: The aptly named Merger Fund, which typically buys stock in a targeted firm after a deal is announced (and stands to benefit from more takeover activity) Also, QuantShares U.S. Market Neutral, which invests mostly in small-company stocks, to maintain an equal ratio of long and short positions.