Re:Ask HN: Investments
by idoh on Monday May 08, 2017 @08:26PM
(#14296790)
I have all of my investments in an S&P 500 ETF. I've been wondering - should I diversify my ETFs or go all-in on the S&P 500? In other words, go large cap only, or large + mid (and or small) cap?
[ Parent
| on HN ]
You may want to consider reviewing Boglehead wiki link I posted, specially the section about Asset Allocation. If all your investment is in S&P500, you are exposed to US Large Company stocks only. You may want to consider diversifying your portfolio to other asset classes. At minimum, you want to setup 3 ETF/fund portfolio: Total stock market, Investment Bond, and International Equity.
Studies have shown that a 60:40 stock:bond portfolio performs almost as well as all stock portfolio but with lower yearly volatility.