I am using a blend of index ETFs for my backup emergency fund:
35% SPY (S&P 500 Index)
25% ITM (intermediate term Municipal bond index)
15% SHM (short term Muni bond index)
12.5% TIP (treasury inflation protected bond index)
10% EFA (international stock index)
2.5% VB (small cap index)
With the exception of TIP all of the ETFs are pretty tax efficient. I got this from Ibbottson, duplicating their "Growth and Income" portfolio, except substituting munis for bonds to lower the tax bills.
You could do something like this as well as the above suggestions.
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