[USER]

Is it risky to invest solely in VTSAX? I’m considering putting all my investment funds into VTSAX (Vanguard Total Stock Market Index Fund) due to its broad market exposure, simplicity, and low costs.

However, I’ve heard mixed opinions about diversification versus focusing on a single fund. Some argue that VTSAX already provides plenty of diversification within the U.S.

stock market, while others believe it’s still important to spread investments across different asset classes and international markets for better risk management.

I’d love to hear from others who have experience with this strategy.

Is relying entirely on VTSAX a smart, simple approach, or is it too risky to forego additional diversification?

What have been your experiences or thoughts on balancing simplicity and potential growth?

[Steve]

What are your investment goal? It’s one of many ways to have average returns.

If that’s your goal then it’s totally rational.

[Robert]

I have no idea what VTSAX is…. But I think most people would say that it’s never a good idea to have “all of our eggs in one basket.”…. Which sounds like your situation.

But then again, I don’t know what your alternatives are.

[Jim]

Not crazy. It’s what JL Collins recommends in The Simple Path to Wealth, because it’s simple and it guarantees that you’ll do as well as the total US stock market, and you should do better than most trying to pick individual stocks.

Lately I’ve been using one of Paul Merriman’s strategies with equal splits between four index funds: large cap blend, large cap value, small cap blend and small cap value.

My performance so far has lagged VTSAX, but it’s still too early to pull the plug on the strategy.

[Chris]

Absolutely not, many are starting to realize it’s the optimal strategy

[Justin]

I would never put all my eggs in one basket, but you need to do what’s right for you.

[Owen]

VTSAX is Total stock fund. Charles Schwab, Fidelity have their versions, its all good.

[Steven]

Not crazy. A good strategy! You can add a small percentage in VUG! It’s an excellent ETF, look at the returns, in the chart!

[Sean]

All of your investments in the entire US stock market isn’t crazy. But totally reasonable if you want to add a bit of International as well.

[Lauren]

I’m doing an experiment. One account is FSKAX (Fidelity equivalent), and the other a robo advisor.

So far, my total market index fund is winning, with no meddling or third parties.

[JT]

Not crazy, but it’d be good to add some international exposure as well

[Mark]

Maybe yes. Maybe no. All depends on ur risk tolerance, time horizon and goals.

I can think of situations where it’s a great idea.

I can think of situations where it’s a horrible idea

[Author]

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