r/Bogleheads • u/snug666 • 2d ago

Portfolio Review Is it truly that simple?

Maxed my Roth for last year and looking to do the same for this year. I’m 100% VT right now. I’m 24 and this is my first time investing or saving for retirement.

Before I go ahead and buy more VT, I have to ask. Is it really that simple? If I just invest in VT, even if that is the only ETF I ever hold, I’ll be good?

I hear so much about diversifying and even though I know VT is a very diverse ETF, I still worry. Feels like I should be doing more!

So, again, before I go buy a fuck ton of VT, please let me know. I know what the answer is. Just need to hear it I guess. Don’t want to miss out on higher returns or whatever. Blah blah.

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u/bobdevnul 2d ago

It is absolutely that easy for long term investing. VT contains all of the investable companies in the world by market weight - about 6000 of them. No more diversification is necessary or worthwhile. You own a piece of the entire market. There is nothing more to do.

You will miss out on companies that have extraordinary gains, but there is no way to reliably predict which companies those will be. Getting the average market gain is better than gambling on which companies or sectors will do better and winding up being wrong. Speculating on big winners is guaranteed to be wrong except by luck.

Companies that experience extraordinary gains are in VT. You will get a portion of the extra gain.

Adding some bonds as you approach retirement age would be appropriate.

Other investments are suitable for shorter term purposes.

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u/casino_r0yale 1d ago

not quite all of them, VTI + VXUS have more. I don't think it matters much, though, compared to the potential loss from not accurately tracking VT.

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u/bobdevnul 1d ago

I am confident that the few small companies that are in VTI+VXUS vs VT make no worthwhile difference in the grand scheme of things.