I've always been taught to have an S&P 500 fund in my portfolio, but I've been really thinking about diversifying across my two main accounts: 401k and Roth.
Is it wrong to hold S&P 500 in both? Are there advantages to diversifying?
Should the 2 accounts have any or minimal overlap?
I like to only hold a few funds per account, like 2-3 in total. I want simplicity here. My thought is going to both sides though. 1 side tells me that when US is up and I have S&P in both, both accounts are up. But also when US is down, both accounts are down.
Bottom line: Should I be hedging my bets by diversifying across the 2 accounts?
Here is an example of what I thought of as a way to have a completely diversified mix across the 2 accounts:
VOO & VBR in 1 (S&P 500 with Small Cap)
VTI & VXUS in 1 (Total Stock Market with All World minus US)
Give me your advice and maybe an example of what the 2 accounts could look like!