I think it's wise for everybody to allocate some funds for high-risk crazy investment in smaller companies, just 5-10%, as long as it's not a straightout scam that is. First, you learn a lot from your research and interactions. Second it is diversification. Third, you can put the money towards something you care about so even if you lose them it's not a big deal such as VR, cancer cure, some cool boat technology, new food, whatever.
Vanguard's VTSAX is an ETF that buys the whole Stock market (more or less, at least a representative portion). By definition that includes smaller high risk companies.
Slight correction: VTSAX is a mutual fund; VTI is the corresponding ETF.
I agree that it's an excellent choice though -- easy diversification, very low expenses, low turnover. VT (which includes foreign stocks) is also worth considering for extra diversification.
Great point. I group VTI, VTSAX, and VTSMX all together in my head; with Vanguard the differences between Vanguard branded ETFs and MFs aren't really that noticeable if you're just buying and holding. Thanks for clarifying my suggestion, though!
