Personal Investments • Optimizing Vanguard Fund Diversification

I’m new to index funds (this is my first year investing), and I currently hold the following funds in my taxable Vanguard brokerage account:

•VTI (Vanguard Total Stock Market ETF): 43%
•VXUS (Vanguard Total International Stock ETF): 11%
•VOO (Vanguard S&P 500 ETF): 16%
•VO (Vanguard Mid-Cap ETF): 4%
•VB (Vanguard Small-Cap ETF): 8%
•VUG (Vanguard Growth ETF): 4%

After reading the Bogleheads Guide to Investing, especially the section on diversification, I’m wondering if these funds may overlap more than I’d like and lack optimal diversification. If I were to consolidate this portfolio down to a maximum of three funds, what would you recommend for efficient diversification?

Additionally, any advice on how to calculate the correlation coefficient between each pair of these Vanguard funds would be greatly appreciated.

Thanks in advance for your insights!

Statistics: Posted by sundar.sritharan — Thu Nov 14, 2024 8:14 pm — Replies 3 — Views 305

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