Does an index fund count as diversifying?
sivers: Please read this very tiny succinct powerful book: http://sivers.org/book/SmartestInvestmentBookI put my notes on that page, but the real book is really worth reading.  It sums up the wisest advice about passive investing so well.Don't go with one fund.  Do three:#1 = An index fund representative of the US stock market in its broadest terms.  (Fidelity: FSTMX, Vanguard: VTSMX)#2 = An index fund representative of the international stock market in its broadest terms. (Fidelity FSIIX, Vanguard: VGTSX)#3 = An index fund representative of the US bond market in its broadest terms.  (Fidelity: FBIDX,  Vanguard: VBMFX)ASSET ALLOCATION:LOW RISK = 14% stocks, 6% int'l stocks, 80% bondsMEDIUM-LOW RISK = 28% stocks, 12% int'l stocks, 60% bondsMEDIUM-HIGH RISK = 42% stocks, 18% int'l stocks, 40% bondsHIGH RISK = 56% stocks, 24% int'l stocks, 20% bonds(NOTE: all stock-holdings are 70% domestic, 30% international.  Only choice is how much are stocks and how much are bonds.)