Is this portfolio diversified, PCL, SPY, ILF, VTI, EWC?

Question

please explain your ansers thanks

Answer 1

Yes and no.  It depends on what percent vti is of your total.  PCl just a timber company.  Not diversified.  SPY, 75% of VTI is SPY so not diversified.  ILF and EWC  Latin America and Canada - fine but do you have any Europe and Asia?  Vanguard FTSE All-world ex-US (VEU) would be a better international choice.  I would replace SPY with VTI and add Vanguard's small cap index if you want more than the 25% mid/small cap that is in VTI.  I would also replace PCI with RFI (Cohen & Steers are the REIT experts).

PS:  I might disagree with Morgan Stanley.  If you are investing for the loooong term (20+ years) and can sleep at night with equities, you don't need bonds.  But, if you have a shorter time limit, or want a more conservative port, some bonds are just the ticket.  I read somewhere a 65% stock, 35% bond portfolio did just about as well (long term) as a diversified all stock portfolio.

Also some people think diversification is overrated.  Warren Buffett has about 70 businesses/stocks in his Berkshire portfolio.  He said "diversification is a crutch for the ignorant."

Answer 2

Not at all because you only have equities,

for it to be truly diversified you need currencies and bonds

nearly everything you have is a second rate indicy...

i suggest some a blue chip like XOM, a tech stock like AAPL, and get some Euro's in there

also, most hedge funds deal exclusively in bonds, get some bonds in there!