Balancing Portfolio

Recently, I made purchases, I feel that I bought too many index funds of the same.


Vanguard Target Retirement 2045 Fund

Vanguard Total Stock Market Index Fund Admiral Shares

That’s my portfolio (Roth IRA account). I was thinking of Just having the VTIVX and VTI only …not VTSAX.

What are your thoughts?



Hi Yaja,

I agree! VTI and VTSAX are essential the same thing. The only major difference is that VTI is an ETF and VTSAX is a mutual fund, but you are getting the same exposure.

If you want to buy more index funds, you may consider replacing Vanguard Total Stock Market with the “Three Fund Portfolio” below:

I hope this helps!

I personally have mine in a target data index fund (TDIF). Looking at VTIVX, it’s comprised of:

Vanguard Total Stock Market Index Fund Investor Shares 53.50%
Vanguard Total International Stock Index Fund Investor Shares 36.00%
Vanguard Total Bond Market II Index Fund Investor Shares 7.40%
Vanguard Total International Bond Index Fund Investor Shares 3.10%

I like to look at what an index fund has inside to see what overlap may be. Some people prefer to use a TDIF and others like the 3 fund portfolio as mentioned. Another way to make a decision is to look at expense ratios. It seems some people in your position sell to switch to one fund. Others would rather leave things as is and then just purchase one fund going forward. There’s no right or wrong. Happy investing!