If I were starting fresh with $50,000 to invest today, I would keep things fairly simple.
Here is how to allocate the full $50,000.
The fund gives investors exposure to a large portfolio of companies across developed markets outside Australia, including businesses from the United States, Europe, and Asia.
For me, this provides a diversification base. Instead of relying on the Australian economy and a handful of individual companies, part of the portfolio would be spread across over a thousand global businesses and industries.
CBA gives the portfolio exposure to Australia's banking sector through a business with leading positions across home lending, deposits, and digital banking.
The valuation can become stretched at times, so to not want to make the position too large.
The mining giant adds exposure to commodities including iron ore and copper, providing a source of earnings different from CBA and the global companies held through the VGS ETF.
BHP would also add some dividend income to the portfolio, although payouts will naturally move with commodity conditions.
After a period for the shares, there is an attractive opportunity if CSL can continue improving earnings and margins over the coming years.
Through businesses including Bunnings, Kmart, and Officeworks, Wesfarmers provides exposure to some of Australia's strongest retail operations.
The VGS ETF would give me broad global diversification from day one, while CBA, BHP, CSL, ResMed, Wesfarmers, and Xero would let me put more money behind individual businesses can perform well over the long term.