A Redditor Only Wants to Hold Two Stocks: 'I'm Seriously Considering Streamlining My Entire Portfolio'

Marc Guberti

Sun, Apr 6, 2025, 7:30 AM 3 min read

A stock portfolio with many holdings can minimize risk and give you access to many opportunities. However, one Redditor is wondering if two holdings are all they need and posted in the Dividends subreddit for some feedback.

"I'm seriously considering streamlining my entire portfolio," the Redditor stated at the start of the post.

Instead of picking a bunch of stocks, the Redditor has settled on two positions: the Vanguard S&P 500 ETF (NYSE:VOO) and the Schwab US Dividend Equity ETF (NYSE:SCHD). The Redditor is also considering a 45/45 split, with the remaining 10% going into the Schwab US Large-Cap Growth ETF (NYSE:SCHG).

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Several commenters agreed with the ETF-focused approach and shared that they also heavily invest in funds. The top commenter puts 50% into SCHD and the remaining 50% into SCHG. One of the top replies to that comment came from someone who puts 60% into SCHD and 40% into SCHG.

The comment got plenty of traction from Redditors who agreed. One commenter replied to the top comment saying, "This is exactly my portfolio in Roth. Not too much going on but that's all I need. Tired of gambling on single stocks."

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One commenter stated that there is no such thing as having a portfolio that is too simple. While you can have a portfolio that isn't diverse enough, you can buy shares in a single ETF and instantly have a diversified portfolio.

The commenter said that VOO has plenty of growth. Investors don't have to beat the market. Most people can reach their long-term financial goals if they match market returns instead of taking high risks just for the hope of outperforming an index like the S&P 500.

Some commenters said that this simple approach was a good one. The Redditor received encouraging comments telling them to keep up the good work. Another commenter mentioned that a more complex portfolio doesn't necessarily generate a higher return.

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While most of the commenters praised the Redditor's decision, one commenter said that knowing the original poster's age and time horizon would have been better. The commenter also said it would be optimal to know the age of each person who has committed to sticking with a few ETFs.