# Three-Fund Portfolio

*Saving & Investing — Finicade finance glossary*

The three-fund portfolio holds a total domestic stock fund, a total international stock fund and a total bond fund — that's the whole strategy. It delivers global diversification at near-zero cost, needs one rebalance a year, and is difficult to tinker with, which is its real advantage. Most complexity added beyond it raises fees and turnover far more reliably than it raises returns.

**Also known as:** 3 fund portfolio, lazy portfolio, Bogleheads portfolio

**Related terms:** [Index Fund](https://finicade.com/glossary/index-fund), [Asset Allocation](https://finicade.com/glossary/asset-allocation), [Diversification](https://finicade.com/glossary/diversification), [Rebalancing](https://finicade.com/glossary/rebalancing), [60/40 Portfolio](https://finicade.com/glossary/60-40-portfolio)

Source: https://finicade.com/glossary/three-fund-portfolio