VTI - VTI: You're Not As Diversified As You Think
2024-05-07 11:42:08 ET
Summary
- Many investors believe they are well-diversified by owning a large number of stocks, but this is not necessarily true.
- The Vanguard Total Stock Market Index Fund ETF owns over 3,700 stocks, which is excessive and redundant.
- VTI's performance is not significantly different from other ETFs that own a smaller number of stocks, and it does not provide adequate downside protection.
I might be writing this to only myself, but I'm going to try it anyway. Because, as I've discussed recently in many excellent exchanges in the Seeking Alpha comments section, I believe many investors think they are much better cushioned from a major stock market decline than they actually are....
VTI: You're Not As Diversified As You Think