Why?
Because if you’re going to go that way (‘I wanna diversify, baby’)…then do it all, and do it cheap.
These types of funds (Vanguard and similar) do it very well, I think.
Take the high-growth Vanguard (the obvious choice IMO…’high growth’ might sound risk-taking to the general public, but not around these parts). 90/10 equities/bonds. Buffett would smile, and I think (especially) a young person wanting to do some ‘set-and-forget-because-seriously-I-am-way-too-busy-with-my-family-career-and-whatever-else-I-have-going-on’ investing could be well served just ploughing into something like this. You get domestic equities; and international equities hedged, unhedged, small and emerging.
Sure – there’s lots similar. You can cover all asset classes at once. You can add funds that will do basic trend following (if that’s your English breakfast), or do stuff that does some tilting toward so-called factors. Heck, you can design your own philosophy (I’d recommend it!) and build your own ETF portfolio. BUT – remember – someone has to manage it. If you’re the above, ‘too busy’ investor, or – just want to live by that philosophy – the good news is that there are so many options these day – low cost options, at that – to cater to that. Good news, for sure.
Just my 2 cents