More ETFs does not mean more diversification
Imagine your portfolio contains:
* VOO – S&P 500
* VTI – Total US Stock Market
* QQQ – Nasdaq-100
You own three different ETFs, but many of their largest holdings overlap.
Companies like Apple, Microsoft, and Nvidia can appear across all three funds.
This means you might be investing in the same companies multiple times without realizing it.
Diversification isn’t about how many tickers you own. It’s about how your money is actually distributed.
Beginner tip: Before adding another ETF, compare its top 10 holdings with the funds you already own.
Sometimes adding another ETF increases your concentration rather than reducing it.
Know what you own.
