No. of Recommendations: 1
Author: galeno Date: 4/9/02 10:29 AM Number: 34119
Vanguard's VFINX has 500 stocks. VTSMX has more than 9000 stocks. Why on earth would anybody need more diversification when full (non-systemic) diversification can be accomplished with 30 to 35 stocks??

To add to the previous excellent response to your question; the reason I choose VTSMX over VFINX because I want diversification over both large and small cap stocks. By using VTSMX I'll get a piece of the next Microsoft before and after it becomes huge.

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