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stanolshefski t1_jaefu2d wrote

Reply to comment by HereForTheNerves in My Roth IRA is 100% invested into VTSAX. Is it an issue to keep investing in VTSAX each year? by dennisj9

It's not important per se in these types of highly diversifed funds.

When the funds overlap, you're not changing diversification -- you're changing asset allocations.

I use Vanguard Total Stock Market Index Fund (VTSAX) along with Vanguard Small-Cap Index Fund (VSMAX) to get more mid-cap and small-cap exposure. My investment plan calls for taking more risk (and hopefully returns) by increasing my exposure to mid-cap and small-cap stocks.

However, all of the stocks in VSMAX (1,486 stocks) are in VTSAX (3,969 stocks).

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