Expanding investments


I currently invest within Fidelity and invest in the total market index fund and total int’l index fund for now. But if I wanted to expand into the real estate index fund would that be overlapping?


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Yeah, probably. An argument against REITs is that they’re already represented in the total market fund based on their market cap. An argument FOR reits is that the market cap doesn’t accurately represent the value of real estate in the economy since so much real estate is privately held. So that argument says you should overweight it.

My opinion is both options are good. If you don’t have any physical real estate, I don’t think it’s crazy to own some REITs mutual funds (I actually do, although if I had it to do over, I’d probably just do a single TDIF and forget it)