Solid allocation strategy
Pelfrey says it is difficult to generalize about how many ETFs a person needs for a well-rounded portfolio.
"I don't know that there is a specific number of ETFs that is appropriate for every investor," he says. "Every client's situation is different."
Instead, Pelfrey tries to craft a plan appropriate for an investor's needs, goals, risk tolerance and time horizon. For some clients, that means a strategy focused on preserving capital. Others require a more aggressive approach.
"However, in most circumstances, we are striving for a broadly diversified portfolio strategy," he says.
For many clients, Pelfrey's firm will use a strategy centered on eight to 12 ETFs with exposure to a variety of asset classes.
But he says the funds listed above should do the job for many investors.
"You can build a solid allocation strategy to meet a broad range of objectives" with those funds, he says.