FIVLX

thewimsey

> "VOO and chill" is mostly an online amateur theory, among younger people who don't remember 2000-2010. nearly all professionals in finance and investing recommend a more diversified portfolio. I've been VOO'ing and Chilling since 1997. I remember 2000-2010 very well. >nearly all professionals in finance and investing recommend a more diversified portfolio. Yes, in retrospect. >and last year, international value beat VOO by 20% or more (17% for VOO vs. 46% for IVLU, 40% for FNDE, 43% for FIVLX) True. But it's beyond stupid to look at one year and think that it is meangingful. Over the past 10 years, VOO has returned an annualized 16%; IVLU an annualized 11%.

harrison_wintergreen

the arguments against large cap growth are: - historically, large cap growth one of the worst performing market sectors over the very long term. value tends to perform better, more pronounced with small and mid cap stocks, while growth strategies tend to perform worst. see here: https://indexingonsteroids.com/smallcap-value-charts and here: https://institutional.fidelity.com/app/literature/view?itemCode=9920885&renditionType=PDF - *growth stock* doesn't mean the stock price will grow faster/better than other stocks. it means the company's revenue or profits are growing faster than peers. sometimes these stocks perform well, other times they won't. - Investing performance is cyclical, based in large part on valuations like CAPE ratios. What performs well the last decade often performs poorly in the next decade, because hot stocks get pushed up to where you're paying too much relative to the company's earnings, dividends, etc. I'm old enough to remember when the S&P 500 went flat from 2000 to 2012-13, and almost everything else performed better: small cap US, international, bonds. so I experienced a period of large growth underperformance. see here: https://contrarianoutlook.com/wp-content/uploads/2016/09/SPY-Midcap-Smallcap-20yr-Chart.png or here: https://www.financialsamurai.com/wp-content/uploads/2016/11/long-term-bonds-versus-stock-market.jpg - "VOO and chill" is mostly an online amateur theory, among younger people who don't remember 2000-2010. nearly all professionals in finance and investing recommend a more diversified portfolio. early 2023, Rob Arnott from Research Affiliates was promoting international value stocks https://www.youtube.com/watch?v=YzZuwe0IPEE and last year, international value beat VOO by 20% or more (17% for VOO vs. 46% for IVLU, 40% for FNDE, 43% for FIVLX)

harrison_wintergreen

>is the common advice still to just blindly pile into the S&P 500? it depends on who you ask. Rob Arnott is a big name in the investing world, and 2 years ago he was recommending international value stocks. https://www.youtube.com/watch?v=YzZuwe0IPEE for 2025, Arnott's FNDE was up 25%; VEA was up 42%; IVLU was up 46%; FIVLX and AVDV were up 45%; DODFX was up 38%; and TRTIX was up 44% ... to pick a few international value funds. >than it has for the decades of American stock market over performance decades? an international developed markets index outperformed the S&P 500 every year from 2002 to 2007, 1983 to 1989, and occasional other years here and there. https://www.blackrock.com/us/financial-professionals/literature/investor-education/why-bother-with-international-stocks.pdf and outperformed almost 50% of rolling 10-year periods back to 1970. https://www.tweedyfunds.com/wp-content/uploads/sites/10/2022/09/Dichotomy-Btwn-US-and-Non-US-Sept2025-Fund.pdf >Personally I think it's incredibly risky to not have a significant international portion of anyone's portfolio at this point. I have rebalanced to ~60/40 International/US in my equities given what I'm seeing happening in my country as an American. it would have been best to rebalace a few years ago when international was beaten down and unloved. but better late than never, assuming you're willing to ride it out the next time international slumps. virtually all professional investors recommend global diversification. it's mostly younger people on reddit who say the magic S&P 500 is the only thing you ever need in the portfolio.