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CleverOrWhatever99 t1_jabm4l4 wrote

I thought you weren't supposed to put all your eggs in one basket? Would it be better to invest in several things?

Not helpful but I am curious.

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Craft_feisty t1_jabnoce wrote

>What are the mechanics of moving to something like a target date fund, if I had been fully invested in equities for the previous ~30 or so years? Sell the equities and simply buy into a target date fund?

VTSAX is an index fund that holds the entire U.S. stock market. It's pretty diversified just by itself. Popular tips would be to hold VTSAX and then get a bond fund or global stocks index fund/ETF

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stanolshefski t1_jac6lb4 wrote

A representative sample of the investable U.S. stock market. It doesn’t contain all small-caps or micro-caps, and some stocks can be determined to not be investable (for example, Berkshire Hathaway was considered to be not investable by most funds before the B share class was created).

To be precise, the fund owns stock in 3,969 companies.

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gjallerhorn t1_jaclr40 wrote

ETFs ARE multiple things. It's a collection of thousands of stocks out into a nice little backer that you're owning a piece of. A lot easier than you having to keep track of all those different stocks yourself. And usually cheaper too

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whisky_in_your_water t1_jacuacd wrote

VTSAX isn't an ETF, it's a mutual fund. The ETF class for that fund is VTI.

Otherwise you're correct. VTSAX owns a piece of pretty much every publicly traded company in the US, in amounts consistent with each company's valuation (i.e. it buys much more Apple stock than, say, AMC).

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