VEA Reddit Mentions | ChartExchange

VT can be very great for simplicity. But I don't understand how people in this group think it's basically wrong to hold anything other than VT. When I was looking at different funds, I realized that. That VOO is no longer considered diversified and nor is VTI. But after deep diving a little bit more, I realized that in 1940 is when they came out with rules and regulations that a fund can no longer be considered diversified if a particular company or companies hit over 5% of total market cap weight. Meaning VEA and VXUS us can both still be considered diverse. Even funds like SCHD, for example, are still considered diversified, even though they have very little holdings.
VT could someday be classified as non-diverse regardless of the fact that it's holding over 10,000 current companies, just because one particular company could hold more than 5% of the entire portfolio. I see people to be so happy of their holdings of how many they have but have no regard for the fact that. The top nine holdings have more weight than every other country besides North America itself. The top two companies have more weight than small and micro-cap and 7 different sectors. The top 25 equates to over 30% of the portfolio and only four companies are actually international. Twenty of the twenty 5 companies in the top have more weight or equal weight to Europe and Asia, Latin America, Middle East and Africa all combined and have more weight than medium, small cap and micro-cap combined. I just see people get so excited that they have micro and small cap in their portfolio without realizing that's not going to move their needle because of how little weight it holds in that portfolio. If you want to actually have exposure to a certain cap size that's not giant or large, you're going to have to add another fund in order to boost that allocation. I see the argument all the time of you must add international to your portfolio to have more diversification without realizing that we're in a world where international and US has roughly 85% correlation. If you want true diversity, you would want to add bonds into your equity. not other countries.
If the true Bogle head is to hold everything and do it in the most simplistic way possible, shouldn't people be preaching index target date funds? Because the main argument I see there is that they have bonds. But if anybody does any amount of research. A small percentage of bonds gliding up to a certain percentage won't hurt your portfolio overall. On top of the fact that if you don't like the particular index funds glide path because it might add too many bonds too early, you can just pick one further out, it's not like you have to pick that exact date that you're going to withdraw the money.