Own VOO and SCHD? Here's How Much You're Really Diversifying.
Adding more funds to your portfolio doesn't automatically make it diversified.
Overview
Owning both the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) has become a popular investment strategy.
The S&P 500 gives you broad exposure to the largest U.S. companies, while the Schwab ETF targets high-quality, high-yielding dividend growth stocks. On paper, they look like an ideal pairing.
Details
But investors shouldn't assume that more exchange-traded funds (ETFs) mean greater diversification. It all depends on how unique those funds really are.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.