VXUS

BRK_B__

VXUS saves the day since it is unhedged on currency but it is international holdings. As long as DXY keeps going down VXUS will go up in $ value to compensate

Obtainer_of_Goods

Ownership of companies has always been the best investment for the long term. I would hold VT over VTI, or you could just add some VXUS. If you do that, your holding a small part of pretty much every publicly traded company in the world. Can’t get more diversified than that.

omgpuppiesarecute

I hold the following: * VXUS (ex-US equities passively managed index etf) * BNDW (ex-US bonds passively managed index etf) * REET (ex-US REITS managed index etf, excludes development firms and only includes REITs that hold real estate) * FXE (Synonymous with holding Euros, pays a dividend) * FXF (Synonymous with holding Swiss Francs, no dividend) * SCHY (Schwab international high dividend yield index etf) Out of those, VXUS, BNDW, SCHY are my largest ex-US holdings. The rest represent <2% positions in my portfolio.

Medium_Cod6579

You’re not wrong but it won’t matter in 2-5 years. Nothing wrong with lump sum into a total market index fund, even at ATH, as long as the horizon is long. I’d personally have split this more like VTI VXUS SSO HYG at 50/30/10/10.

adrian300

Set a weekly buy of VTI and VXUS

BRK_B__

My Roth has been 100% VXUS since March. Thank god this shit ETF has no currency hedge cause I'm up 10% YTD. Hopefully this 5% NATO goal and the US tariffs put some actual growth in foreign stocks r smthn . I'm considering buying an emerging markets tilt in addition to VXUS just because I think China and India are about to go toe to toe for who can exploit their billion person population more and their growth will boom headed into 2030

ai___________

Pretty much every brokerage have the option to buy voo nowadays. I use fidelity personally. I personally do 85:15 VTI:VXUS, VTI have a bit more exposure on stocks outside of the sp500, but their returns are highly correlated. Besides that I also have a gamble account to play whatever shit bet I want to play and I always win some and lose some. So yeah you can do serious investing while having fun. But pay attention to how many risk you’re putting yourself on and the fundamentals should still be ETF that covers a wide range of stocks. In the stock market there always new things to learn, I’m learning new things everyday.

ILoveKombucha

I strongly second the advice (from u/Wild_Ingenuity63 to visit the Boglehead forum, and study up on Boglehead investing. Yeah, this stuff is all like an alien language at first, but stick with it; it's really not that complicated. Learn about Boglehead investing, and perhaps watch some Ben Felix on youtube. These approaches are backed by data, and are absolutely not "get rich quick" type approaches. It's all about owning the market (ie, investing in all the stocks) and letting growth in the economy boost the value of your portfolio over the long term. And yes, it is a long term approach... you buy the same stuff year after year, and then thank yourself in 30 years from now. A sample Bogle style portfolio would be something like: 60% VTI or VOO (these investments basically amount to the entire US stock market), 20% VXUS (this basically amounts to the entire world stock market, minus the US), and 20% BND (bonds, which smooth out your portfolio's volatility, but tend to offer less growth). Since you are young, you could forgo the bonds and just do 75% VTI or VOO, and 25% VXUS. This would be a perfectly reasonable start. But go read about it and understand it. Watch some Ben Felix, etc.

Admirable-Volume-848

VOO + VXUS is safest choice but I like VOOG + VXUS(any ex-US international stock) + some single stocks more.

SirGlass

Depends on your age, as you grow older and want a more stable portfolio you add bonds, if you are younger or have a high risk tolerance you can simply skip bonds or allocate a small amount 0%-5%-10% into them. People will endlessly argue the split between VTI or VXUS but generally if you are young a split may be something like 55% VTI, 35% VXUS, 10% BND. Some people prefer to hold more VTI vs VXUS and do like a 65/25/10 split

DC8008008

Idk I would personally do 60% VTI (Total US Market), 20% VXUS (International) and then 20% QQQ if you want more exposure to tech.

DaemonTargaryen2024

> maybe one with a bit more upside It’s impossible to say if a fund will have more upside than the S&P. Any that claims to must by definition take on much more risk. > and one with a recession hedge Who cares about a recession hedge when your time horizon is 20-30 years? > If you were you invest in three index funds, what would you pick? VTI, VXUS, and BND. But your 401k probably has a limited lineup of fund choices, so we can’t help unless you post that list.

SirGlass

Diversification is not just about owning a bunch of tickers The problem with your portfolio is you are actually concentrating your holdings in large cap and large cap tech VTI/SCHB are near identical total market funds, there are slight differences but both are total market funds and will hold basically the same stuff. No reason to keep both VOO is a subset of VTI/SCHB so by adding VOO you are not adding diversify you are concentrating your portfolio into large cap stocks Then QQQ/SCHG is basically a sub set of VOO, what means you are concentrating further into large cap mostly tech/growth stocks Meaning your current portfolio is less diverse then just holding 100% VTI or SCHB. All those tickers are sub sets of VTI/SCHB and concentrating your holdings making you less diverse A classic 3 fund portfolio is simple Total USA market Total ex USA market Total Bonds (some people will skip bonds until older) Some people simplify it further and just do Total World market Bonds So something like VTI (total USA) , VXUS (total ex-USA) , BND (total bonds) or VT (total world market )

colxa

If you want to diversify international you could target a fund that is specific to international and excludes US equities: VXUS

xiongchiamiov

> They're convinced that crypto like Bitcoin is easy because you can just play into its cycles, or make easy money with quick-selling IPOs, or just taking advantage of obvious slumps (Tariff stuff this year). It only takes a bit of active attention, and the traditional mindset of crypto being super risky is outdated. > > It makes me feel fairly inadequate, as if I'm just playing it too safe, that I'm genuinely missing out on lots of money for virtually no reason. An incredibly important life skill is being able to determine _fact_ separate from what people around you say. Just because people are saying something repeatedly doesn't make it true. (This is one of the areas where you [allistic](https://dictionary.cambridge.org/us/dictionary/english/allistic) folks are at a disadvantage, as your brains are wired to operate that way and you have to make an intentional effort to change it. Sorry. Reading behavioral economics books like The Psychology of Money and Your Money and Your Brain might help.) Btw, it's worth remembering that a widely diversified portfolio that's 100% in stock _is high risk_. Even 80% stock is high risk. The "safe" portfolio you should be comparing yourself against is something like a 60/40 or an even thirds of VTI/VXUS/BND. Spend time looking at [backtests](https://www.lazyportfolioetf.com/portfolio-backtest-and-simulation/) and how much volatility there is, and how long the drawdowns are, in these things.

Darkstarx7x

Similar position, I ended up going with VOO, QQQ, VXUS, and IBIT. With 50% of that being VOO. I wanted to be safe, favor tech (huge believer in AI), have exposure to international stocks, but also take a chance on BTC.

As1esGyo

Growth + dividend grower: DGRO Dividend King: SCHD Growth + compound: VOO or any SP500 ETFs Crypto: IBIT or ETHA Others: VTI and VXUS DO NOT PUT IN ANY YIELDMAX ETFs. HIGH FEE AND LESS RETURN. I DON'T CARE SOME1 IN YOUR FAMILY TELLS U TO DO IT. DON'T DO IT.

FiftyshadesofPeaches

Max out ROTH IRA ($583 a month) and invest in VOO/VXUS (70/30 split). Contribute to a 529 plan (which is flexible and also tax advantaged) for my kid when they go to college. Anything left over, HYSA.

Ordinary-Ad5776

Boring VOO/VTI + VXUS keep buying and holding.

PracticalAssist3729

ROTH IRA VOO and VXUS tend to be a popular option! Check it out but do your research.

DarkVoid42

nah. you can always buy in to VXUS/VYMI/XSX7 etc etc. diversifying is also good.

ThePushaZeke

My opinion: Yes to mutual funds or ETF’s No to anything to prioritizes high dividend payments (where does this money come from? Are you as a shareholder basically just diluting/decreasing your stack just to be paid your portion of the money back?) VT is a really good single fund option VTI/VXUS is a really good 2 fund option More risk tolerance or want to add your own spin? Then maybe add some spice with factor-based ETF’s like value/growth or large/small cap (AVUV is a personal fav). There’s also maybe a specific industries or types assets you want to hold, such as real estate or crypto or precious metals. Nothing wrong with that but it’s an entirely different game than buying LOW COT broad index funds. My top rules: 1. Diversify well 2. No leverage (or leveraged ETFs) Note: fidelity has some great ZERO expense ratio funds that are well diversified FZROX is one of them! Good luck!

ThePushaZeke

My opinion: Yes to mutual funds or ETF’s No to anything to prioritizes high dividend payments (where does this money come from? Are you as a shareholder basically just diluting/decreasing your stack just to be paid your portion of the money back?) VT is a really good single fund option VTI/VXUS is a really good 2 fund option More risk tolerance or want to add your own spin? Then maybe add some spice with factor-based ETF’s like value/growth or large/small cap (AVUV is a personal fav). There’s also maybe a specific industries or types assets you want to hold, such as real estate or crypto or precious metals. Nothing wrong with that but it’s an entirely different game than buying LOW COT broad index funds. My top rules: 1. Diversify well 2. No leverage (or leveraged ETFs)

Prudent-Corgi3793

Here are the performances of VOO (S&P 500), VTI (total US stock market), VXUS (total international stock market), and a DFIV/AVDV/AVES portfolio (international value tilted portfolio, as the value factor has performed much better in international equities). I chose two time frames, since [Inauguration Day](https://testfol.io/?s=aUi41pgL4Sa) and since the [April 8 bottom](https://testfol.io/?s=c6zwkit3ZtK) (which would assume you had perfect insider info): |Returns as of 6/26/25|VOO|VTI|VXUS|Intl Value| |:-|:-|:-|:-|:-| |Since 1/20/25|2.10%|1.29%|14.57%|18.12%| |Since 4/8/25|23.52%|23.87%|24.47%|26.88%| Even if you had insider info telling you to buy on 4/8/25 right before the stock market recovered, you would have still done better to rotate to international.

jakechance

First of all don’t beat yourself up. This isn’t a big mistake, just a less than ideal allocation of capital I.e. you could have had more money. The first thing to do is figure out what allocation and risk tolerance you have. If you’re familiar with Bogelheads, you’re likely familiar with a VTI, VXUS, BND portfolio. One option is to treat VTI and VIG combined as your US equities and invest new money to achieve your ratio of those three funds. Use the dividends to rebalance as well.  If you really want to simplify things, figure out how much VIG you can sell before you trigger add on taxes like the Net Investment Income Tax. I’m assuming all your gains are long term and you’re firmly in the 15% long term tax rate (I.e. don’t qualify for the 0% or 20%). Keep in mind that taxes are a drag but in order to pay them, you must be making more money than them. It’s only slightly inefficient to pay them at certain times vs others. 

Alwaysfavoriteasian

I sold all of my VXUS shares this year.

Slachi2025

Just saw how much better VXUS is doing than VTI this year. And that's ignoring currency. Americans are fucked.

joe-re

> The era of American stock market exceptionalism is over. VXUS up ytd 17%. VOO up ytd 5.5% USD vs EUR ytd: -13% Risk free t-bill rates are up (not due to Fed), USD reserve currency as a percentage of total reserve currency down. Fed debt still going up, with higher debt expected. Shifts in macro markets and global investment take time, but shift away from US seems right on track. But I am glad you are back to where you were end of last year, inflation adjusted.

RipWhenDamageTaken

Nothing wrong with the second one. VXUS out performed VTI this year.

solariac

If you ever feel bad, remember that there's some dumbass bogleheads out there boasting about their 15% return over 15 years on VXUS

Jonas42

Listed where? I see a tiny bit of Turkish exposure [here](https://etfdb.com/etf/VXUS/#charts).

G4M35

> SGOV: 25% Why so much in cash? > VOO: 35% Good > VXUS: 15% Good > SPYI/QQQI/GPIX: 25% (even split) LOL. You know already what people are going to say, and that's why you posted, to rattle the cage. I am not going to take the bait. You do you.

Nosemyfart

Everybody's situation is different, I don't know yours, but for your age that 25% in sgov seems too conservative. Me personally, I'd just keep a year of living expenses in a money market fund (to be more conservative than the 6 months recommended) and then split the funds into 80/20 VTI/VXUS. But that's me

InvisibleEar

Am I exposed to Turkey? It's not listed as a country in VXUS

LazyTheKid11

Zoom out. See how VXUS has performed against VOO over the last year. Taking such a small timeframe is basically an attempt to manipulate data to align with your narrative. you can sell all your US positions and buy ex-us positions and we’ll compare again in 5 years

davecrist

U.S. companies that do global business are still primarily exposed to the U.S. economy, laws, interest rates, and currency. Their stock prices tend to move with the U.S. market, limiting diversification. Invest where and how you want but if you want true international diversification adding VXUS — or my personal fav AVDV — gives exposure to foreign economies, currencies, and market dynamics, which often behave differently from the U.S., reducing overall portfolio risk.

Far_Lifeguard_5027

There are international ETFs, you might want to take a look at them. Some of them are doing good but it might be a bull run that won't last. VXUS does lousy in comparison to individual country ETFs. But the sector rotation ETF from iShares (CORO) tried to capture them all.

bizkut

VXUS is up 14.5% over the last year vs VOO up 12.5% VXUS is up 39.44% over the last 5 years vs VOO up 99.25% You're free to set your own allocation but you're cherry picking a pretty recent window.

BillyDeCarlo

We're solid in VEA, which is ex-US and without the emerging market exposure that VXUS has (due to being pre-retirees, so shorter roadmap).

GrandRare1634

I set limit orders for something like a 15% drop (IDK exactly what it was) to try to preserve my cost basis, and most all of them activated. I waited until it seemed like the drops were slowing down, and then rebought/reallocated investments when things bottomed out (when I was still net positive, so no wash rule). As of today I'm up $8K from where I was before thanks to it. VOO and VXUS especially have had a good run, but I'm *most* glad I dumped a lot of cash into SCHG when it was 23-24. I think I just got lucky on timing.

howtoheretic

I have a very similar setup to yourself. VT is still 65% US equities or something similar so you do want to keep individual funds to get more weight in international stocks. Check out the Avantis international funds as well, I think they'll outperform VXUS by quite a bit but moving internationally in general is a great play IMO.

fledgling66

I have practically no foreign stocks. 6% of my portfolio is TSM (up 130%!), and I have a fair share of companies whose reach is global, but no world ETFs. I got out of VXUS when Trump got in, after it barely growing a basis point from when I bought it (which, in hindsight, was a mistake). Anyway, what’s public opinion? Stick to my US only (with a value slant, btw) thesis, or buy world at ATHs?

Super_mando1130

A financial planner, in good faith, shouldn’t be trading to necessarily beat a benchmark like the S&P500. Very few managers out there can do that consistently. CFPs are usually focused on getting you to a target/goal and advising on that. At 20M/14M invested, it’s about what you are looking for - from your post it sounds like you want 5-6% growth (is that pre or post tax/inflation) with exposure to certain companies. That almost certainly is not going to be the S&P 500 year in and year out. It might beat it here and there but not in the long run. I’d ask your CFPs if they can put together a sample portfolio of ETFs that will have low expense ratio and sit at the S&P500 level (mix in some mid to small cap ETFs and maybe something VXUS) then sprinkle in some of those individual stocks you might like. Any CFP should be able to advise on what to expect including drawdowns and expectations on growth. Additionally, if you want to test your CFPs ability I’d request a sharpe ratio and information ratio. You can compare that to different benchmarks to see if the risk you are taking on is worth the return you are getting. “Is my return worth the risk” should be the focus of conversation 99% of the time anyways. 6% can be achieved by S&P500 over the long run. 1% can be achieved in many different ways but they all add in risk, the idea is to achieve that 1% with the smallest risk as possible (usually done by looking for uncorrelated positions). Goodluck

BRK_B__

The stock market tanked, then the dollar lost 10% which means the stock market goes up 10% in terms of dollars. If you measure it in another denomination, say euro, then you're still negative and not approaching ATH. On the flip side, if you own something like VXUS in dollars, you'd have seen VXUS appreciate as the dollar loses value, so even though you'll see your account value go up up up its only because the dollar has been sliding down.

Fine-Historian4018

Vti is a total us market fund in usd. Vxus (total international) holdings are in foreign currencies. The ticker is denominated in dollars but the underlying holdings are in local currencies. Vti has a ytd performance of 4%. VXUS is up 17% ytd. Due in part to the dollar weakening versus other major currencies. https://www.avantisinvestors.com/printview?articleSlug=avantis-insights/currency-effects-on-non-us-stock-returns&company=avantis

CanYouPleaseChill

A lot, as it’s mostly expensive US large cap growth in just a couple of sectors. I bet an international ETF like VXUS will outperform this portfolio over the next decade.

Snr_Wilson

Just learning you could DCA into an index fund was a revelation for someone who knew nothing about investing. I went from thinking "this is a risky, expensive, full-time endeavour that could bankrupt me in a day" to "lol over a long enough time frame, this is just a turbo charged savings account with some tax considerations". I've been drip-feeding money into a couple of funds since (VOO first, then switched to VTI/VXUS).

xiongchiamiov

TDFs are designed to be the entirety of your portfolio. If you hold a TDF in one account, and VTI in the other, then you're overweighting US stocks (as compared to what the fund manager believes to be correct). VT would be closer, but doesn't hold bonds or whatever else your TDF has. That being said, if you aren't doing tax optimization or trying to get everything exactly balanced, VT or VTI+VXUS would be pretty fine in the taxable account. Btw: no 401k available? Are you eligible for an HSA?

rarflye

Sorry I should've been clearer that my example was a hypothetical to illustrate the impact MER can have long term. Specific to VXUS and IDMO, as I mentioned in another comment it's something of a challenge to try and draw direct comparisons between the two. Personally when I want growth I just invest in the sectors I am knowledgeable in through stocks & ETFs and generate growth that way. Broad ETFs are how I preserve some of those earnings long term

rarflye

At a quick glance it seems like a good fund. It looks like it's a bit more centred around Japan than VXUS, but their performance graphs over the last year look nearly identical, their dividends are very similar to VXUS, the sector distribution is more balanced than IDMO, and the MER is lower than VXUS'. Personally I like to get a few funds and sort of drip into all of them over time, so this might be a fun one to add to the mix

Alterna9

I think I’ve come to the conclusion that IDMO might be a little too volatile for my liking, not to mention it’s only 200 companies. However, VXUS’s 7500 holdings seems too high for my liking. What are your thoughts on IDEV, a nice middle ground? I realize this excludes emerging markets. However, I’m someone who’s been on the fence about international for a while now, so I figure this is at least better than nothing.

LiberalAspergers

I mostly sold out of the US market, and moved my core 401(k) position from VT to VXUS. No complaints. The drop in the dollar over the past few months has been nice to me.

doggz109

There are tons of better ex us funds than VXUS.

BurlyJohnBrown

I didn’t expect TACO but I only sold part of my portfolio to and invested it into international stocks and short treasuries for a potential slowdown. VXUS did pretty well and helped make up for dollar losses and I'd the slowdown doesn't happen and tariffs are resolved this year Ill put some treasuries back in. Overall I'm happy with my choice but I also didn't sell everything like some people.

OneBigBeefPlease

Yes and no. I sold maybe 5% of the non-taxable portfolio when I saw doom ahead, and got maybe 30% of that back into VTI and VXUS at the absolute bottom (yay). Bought back some more on the way up but wish I bought all the way back in. I bet I would have done just about the same had I held on.

MaxwellSmart07

. No reason besides it will hurt some feelings investing in a fund that doesn’t start with the letter “V”. IDMO has trounced VXUS returns.

TurboSalsa

VXUS is probably the most popular (on Reddit anyway) for purely international ETFs.

harrison_wintergreen

IDMO and VXUS are not apples to apples comparisons. the last 10 years doesn't necessarily predict the next 10 years.

Tojuro

I sold heavily in my after tax brokerage, and moved things around in my Roth, around January. Much of that went to diversify internationally. It was mostly USA/VTI type stuff before and I opened big positions in VEA and VXUS. I also added VYMI (to balance out VYM) in the Roth. This was primarily to diversify, but they've all done well compared to the original holdings. I had one lucky win, selling a big block of Amazon in the $220s then fully buying back in at 176. OTOH, I sold a block of MSFT and didn't fully buy back in when it was cheap, so I'd have been better holding there given where it's at. I repurchased some VTI in April but am still over 20% cash. The US leadership is too erratic to not bet on the potential for sale prices at any given time. It's mostly been a wash but even if there was a loss, I prefer the diversification and flexibility in my portfolio now, given the inevitable volatility and erratic leadership for the next 3.5+ years.

suoromalc

I have ~300K or 15% of my asset in BND in a taxable account. Recently 1) I inherited some foreign estate from my grandparents. I intended to leave them as they are and treat them like a cushion asset similar to bond. 2) I've got a new tech job in California. My new tax bracket and California tax will kill my BND returns. I originally hold BND in case of unexpected life changes and needing the cash (e.g. buying a house). Now it is looking less likely. I'm considering - Selling BND and convert them to California Muni fund (VTEC). Less diversified, lower return, and IIUC only beneficial for the highest tax bracket earners. - Go all in on stock (VTI + VXUS). Higher return, lower dividend and taxes on them. Riskier, but placing the bet that I don't need 300K in ~5 year, and if I do I'll just sell some. - Keep the BND? - Other asset classes? IMO my dream asset would be a fund that invests in bond, has bond like performance, but doesn't issue dividends so I can defer tax indefinitely. Don't think such fund exist.

StaggeringMediocrity

You can also include BND (Vanguard's bond ETF) if you want something that will mirror a target date fund. VTI, VXUS, and BND are a common "three fund portfolio" that's recommended over in r/Bogleheads People choose different ratios depending on their age and risk tolerance, and then increase BND at the expense of the others as they get closer to their anticipated retirement age. That way they can mirror a TDF without paying the expense ratio of a managed fund.

sortahere5

I'm up 13.7% YTD having shifted out of US stocks to gold, silver, VXUS ,and VYMI. I feel really good. Might rethink it soon but I have had great peace of mind. US stocks make no sense but whatever. As long as I can get good returns elsewhere.

Prudent-Corgi3793

International stocks have trounced US stocks and actually recovered even more quickly. From a comment I made on r/ValueInvesting , so this includes a value-tilted portfolio. Here are the performances of VOO (S&P 500), VTI (total US stock market), VXUS (total international stock market), and a DFIV/AVDV/AVES portfolio (international value tilted portfolio, as the value factor has performed much better in international equities). I chose two time frames, since [Inauguration Day](https://testfol.io/?s=aUi41pgL4Sa) and since the [April 8 bottom](https://testfol.io/?s=c6zwkit3ZtK) (which would assume you had perfect insider info): |Returns as of 6/25/25|VOO|VTI|VXUS|Intl Value| |:-|:-|:-|:-|:-| |Since 1/20/25|1.30%|0.43%|13.45%|16.75%| |Since 4/8/25|22.55%|22.81%|23.25%|25.40%| That's right, even if you had insider info telling you to buy on 4/8/25 right before the stock market recovered, you would have still done better to be in international.

SpartyNash

60% in HYSA, SGOV, I-Bonds. 30% VTI. 10% VXUS.

BRK_B__

Yes 100%. I converted my Roth to 100% VXUS in March, now I'm up 11% YTD even though everyone said I was an idiot for it. I also switched from SPY to SPYI for downside protection and saved ~3% losses from April 2nd, which I immediately sold and reinvested into SPY and made 3% more than SPYI. Currently I am 100% VXUS in my Roth still, I sold everything beside 500 SPYI in my taxable, and I forgot to mention my hedge puts which printed 300% in April so now I am hedged for a $450 SPY by 09/30 for "free" because I laddered down my hedge and kept profits. tldr: yes and I am outperforming u passibe investors handily YTD

Aggressive_Finish798

I've held VXUS and was thinking about selling it off before this tariff craziness, and now it's convinced me to hold it and even add to it. So not mostly international, but it's definitely useful for wild rides if you want stability.

cakeandale

I don’t - the peace of mind of having extra cash to supplement an emergency fund in case the expected slowdown in Q3/Q4 comes about is worth the potential loss of gains, and the rest that I kept invested in international etfs like VXUS has kept up sufficiently well.

StaggeringMediocrity

Well, VT is the Total World Stock ETF, which also contains US companies. If you really want to fine-tune your exposure it would be better to go VTI and VXUS (just international) in whatever proportion of US/international you want.

Due-Tea3607

First thing that sticks out to me is that AUM is a lot smaller, if you are worried about liquidity if you want to exit your position under pressure. The 1Y beta is pretty high at 0.81 which isn't necessarily bad, but something to keep an eye on. VXUS, IDEV are far less volatile, but return less. They have much higher AUM at $493150M and $19861M compared to IDMO at $902M. Personally I have IDV on my shortlist, which performs similarly to IDMO, but less volatile, larger AUM, value category is the main difference; might want to check as an option. Since much of the markets are so interconnected, most follow the same sort of pattern at the same time. It's more a matter of finding the best performing ones with acceptable risk to you.

rarflye

I don't think you're wrong, I think you're just taking a reductive view of the two funds. The calculus is not that straightforward. More notable differences between IDMO and VXUS: \- VXUS has holdings in more than 8000 stocks and funds. IDMO has 200 \- VXUS is more evenly distributed across sectors, while IDMO has a very strong emphasis on the financial/banking sector (46% financial stocks!) \- VXUS is more evenly distributed across markets, while IDMO is primarily invested in Germany, UK and Canada \- VXUS has approximately double the dividend yield of IDMO Personally if I'm after growth, I invest in individual stocks or narrow ETFs representative of sectors I believe will bring that growth. If I want stability, I'm looking at broad funds with low MER to preserve my capital. IDMO looks more tantalizing on a returns basis alone but again with even the surface level details I mentioned it becomes more challenging to to say how clear cut the advantage is, and if the heightened exposure is worth the trade off

Alterna9

Correct me if I’m wrong, but fees don’t really matter when you’re doubling up your competition, right? If we are to assume the trajectories and trends of these funds are to remain the same, you’ll still make more with IDMO than VXUS, even after fees? Isn’t the net balance in the end all that matters?

Hetawow

IDMO has higher expense ratios and less diversification than VXUS. Past performance doesn't predict future returns. The extra fees will eat into your gains over time, especially for long term holding. VXUS + VOO is solid.

ServerTechie

IDMO is a little more volatile, but no risk no reward. It’s been a really impressive international ETF the past 5 years. VXUS may be well diversified but the performance is a snore. Compare VXUS to IDMO, FENI, FIVA, and you’ll see how much better you can potentially do. I use FIVA in my Rollover IRA and I’m very happy with it.

Cruian

IDMO is developed markets only. VXUS has both developed and emerging. Emerging may come with a risk premium compared to developed only. VXUS is broad coverage, IDMO uses momentum factor to help guide the holdings. Momentum can be a factor, but it may not be as strong as some others. >I’m basically looking for an international fund to complement my VOO. Does IDMO fit the bill? Or is that still not diversified enough? VXUS is more like VOO if only looking at IDMO vs VXUS. VEU may be even closer, as it also leaves out smaller companies like VOO does. IDMO is similar to SPMO, not VOO.

rarflye

I don't have the capacity to dig into the portfolios at the moment, but the standout detail is MER VXUS is 0.05%, IDMO is 0.25% For index funds, especially ones that will have similar performances, MER is a factor

TT_Vert

Thanks for your info. I looked into VXUS and it's similar to SCHG in holdings but about 1/2 the tech stock percentage, hence a bit lower return over the last 5 or so years. I may stick w/ SCHG and maybe transition towards VXUS if tech starts to decline. VXUS is VERY similar in performance to the MF SWISX i currently hold. Slightly lower expense ratio and a hair more return over the last 10 years. I don't particularly like Morningstar's rating on it though. Similar holdings except VXUS holds Taiwan Semiconductor Manufacturing Co Ltd and SWISX doesn't. I am going to continue to look for alternative Foreign Large Blend ETFs. Dave

davecrist

Just VXUS and just VT would have made you a million. VOO should have made you almost 1.8 million so you may HAVE been trying not to make a million. Hell, just buying bonds making 2% would get you close. My point is that the S&P500 had nothing to do with it, especially over the past 12 years.

CathyBikesBook

VTI and VXUS in a Roth IRA

Newbiewhitekicks

VOO and SPY are the same thing. VOO and SPY are in VTI. I would recommend VTI and VXUS at 80/20.

Over-Computer-6464

I try to avoid complexity unless there is a significant benefit. I have seen many portfolios managed by financial advisors that are complex combinations of both growth and value funds, in addition to blended funds. When I do a backtest on them they end up being essentially the same return as a basic low expense ratio total market fund. [Portfolio Visializer](https://www.portfoliovisualizer.com/backtest-portfolio) is good for backtesting, although free accounts are now limited to 10 year maximum backtests. For the portion of my portfolio that are ETFs I just default to the old reliables of VTI/ITOT/SCHB (total US stock market) and IXUS/VXUS (total ex-US stocks). I use the multiple ETFs for total US and total ex-US for tax loss harvesting. In your Roth that is irrelevant, so the simplest and easiest and most effective thing to do is to simply figure out our US/ex-US allocation and buy VTI and VXUS, at both brokers. VXUS tracks FTSE Global All Cap ex US Index, with 0.05% expense ratio with a fairly large tracking error of 1.78%. It is also available as the mutual fund VTIAX at the slightly 0.09% expense ratio. IXUS has 0.07% ratio and tracks MSCI ACWI ex USA IMI with 1.59% tracking error. The overall returns of the two ETFs are essentially identical. Your 20% allocation to international is very reasonable. Although market cap weighting of international is higher, due to the extra volatility from exchange rate variations, the minimum volatility (in USD) is in the low 30% range of ex-US. I choose to apply a mild home bias and chose overall 80/20 US/ex-US. Because the individual stock portion of my portfolio (old, low cost basis shares in taxable accounts) are predominantly US, my ETFs are about 60/40 US/international.

Ill-Veterinarian908

You’re young. I’d have a standalone position in VXUS that way you can increase/decrease your international position as needed

Rich-Contribution-84

I keep 9-12 months worth of expenses in cash as an emergency fund. If you’re asking percentage of overall portfolio? I’ve never even looked at it that way. I don’t think of my cash as anything other than the funds that would keep me alive if I lost my job or insurance or if I need a new roof or something. It’s about 8% of what my retirement portfolio is, though. At age 41 my retirement portfolio is 75% ~ stocks (mostly broad market index funds and a TDF) and 25% ~ physical real estate (residential rental property). I plan to retire around age 65, so when I’m about age 50 (15 years from retirement) I’ll shift from growth/accumulation mode to preservation mode and I’ll start aggressively adding things like BND/SGOV/maybe some cash to my retirement portfolio, but until then, I just keep buying VTI/VXUS 80/20 every two weeks automatically out of my paycheck in my taxable account and the TDF in my 401(k) and HSA.

Over-Computer-6464

As you have discovered, leverage is great, …. until it isn't. Take your losses. Pay attention to what you have learned. You may be lucky and outguess the market and make great stock picks, and have great timing getting into and out of the market. The more likely path is what you have experienced. At some point hopefully you will realize that just because you were "not satisfied with 8-10% returns" does not matter. Unless I think I am smarter than the rest if the world or know something that the rest of the world does not know or realize, I just buy the whole market via broad based ETFs like VTI/SCHB/ITOT and VXUS/IXUS. At some point you may find the wisdom and maturity to "accept what the market gives". Spend some effort on determining your optimal asset allocation and the rules for rebalancing. Then follow them. Do not change course in the heat of the moment, Stay the course with the plan you put together during a period of calm reflection,

Based_Commgnunism

VXUS

grokfinance

If you have a 20 year time horizon then I would just buy a couple simple total market index funds like an 80/20 mix of VTI and VXUS and call it a day. Your "intelligent" portfolio is pretty dumb in that it is apparently way too conservative.

Marshall_Hoodie

Boglehead 3 fund is some sort of (VOO/VTI/VT), VXUS, and (BND/SGOV) depending on age for amount of bonds. Some true believers are bonds % for age.

LiberalAspergers

Worth pointing out that the CAPE of SPY broke 40 in early 1999. The return over the following 10 years was negative. I dont expect that, but I do expect a decade or two of stagnation. 5% annual returns is frankly an optimistic prediction given a CAPE this high. I bring up VXUS because I expect the dollar to decline relative to a basket of world currencies over the coming decades, which should enhance realtive dollar returns from non-US equities over that time.

user-namepending

You've been doing this for 3 decades now but that didn't stop SPY in the 90's when CAPE was in the forties? And if youre going to talk about 2 decade returns than why even bring VXUS up? Even in high CAPE conditions SPY has still outperformed VXUS when we expand the horizon to 2 decades.

ServerTechie

A diversified portfolio is your friend. Nobody can predict the future. Past performance does not guarantee future results and yadda yadda. In fact my non-US equity funds are performing great in 2025. Yes, it is worth having foreign equity. Furthermore, don’t let the popular VXUS guide your decision. Check out IDMO and you’ll see how good foreign equity can perform.

LiberalAspergers

If your long term strategy was SPY, then you were already a bonehead. A CAPE of 35 is insanely high, there just isnt any long term value to be had there. Expecting a return over 5% over the coming decade or 2 from SPY seems unlikely. The time to start selling US equities was December, frankly. There are still a few individual equities on the US market I hold, but my 401(k) is now 90% VXUS.

MaxwellSmart07

I feel your disappointment. The Boglehead orthodox are still insisting, after the fact, that I should have been into VOO, VXUS , BND &/or AVUV over the last decade instead of SPMO, QQQ, SPLG, VGT and SMH. The situation now is in flux. Will you abandon international or retain it and dca into domestic growth? FYI: IDMO is far better than VXUS.

BeaverMartin

Liquidated just about everything after the election honeymoon bump. Usually I hedge with the bond market but since I believe that this time is different and I’m continuing to predict an elongated recession/correction I put the vast majority in VXUS which has returned about 6.75% or so. PLTR was one of the few I was continuing to hold but was unfortunately forced to sell at about $95 for and admittedly decent gain due to an ethical conflict from changes to my portfolio at work. Overall I’m happy considering.

BRK_B__

I am sitting on cash and waiting until tariffs are normalized whatever numbers those are, until then I'm not investing in this mess especially when I get 4.2% returns from my MM fund. Roth is 100% VXUS too

LiberalAspergers

I moved my core position out of VT and into VXUS back in January. Not just because of the tarifffs, but because the US markets overall are trading at a insanely high cyclically adjusted P/E ratio, and it seems extraordinarily unlikely that the US economy as a whole can grow fast enough to justify it. There are some individual US equities I still hold, but I no longer have any ETF or index exposure to the US overall.

Strategerish

Keep it in until you're retired. You'll be able to pay zero taxes on most if you just sit tight. Hopefully you're in a well-diversified fund tho like VT, VTI, VOO, VXUS, VEA

ThirdPlaceLithium

I sold about half of my holdings 2/3 the way down after L-Day. I was 100% US equities. I am now about 30% US equities and 30% international — VXUS mostly, but ~4% FRDM (liberty emerging markets), ~3% EUAD (Euro Defense), ~1% each in FLMX (Mexico), FLIN (India), and VNM (Vietnam). I am ~5% IAUM (gold) and ~36% cash or treasuries.

dorfWizard

You’re taking what is known as “uncompensated risk”. What if there’s a great disruption in the tech sector in the next few years? An unforeseen international company figures out quantum computing.  https://www.whitecoatinvestor.com/uncompensated-risk/ A total market portfolio like VTI + VXUS will get you the world for cheap and you still get exposure to the Nasdaq. Just something to consider. 

Thadlust

Down 10%? My VXUS is doing great

lubesies

SP500 is 80% of the total market cap so in my mind that's pretty damn diversified. But getting a bit into an international fund (I use VXUS) give you a bit of international diversification. As a 32 year old I shoot for about 50% VTI, 20% VXUS, then 30% on a few individual equities. If I didn't want elindividual stocks as a 32 year old I would just go VTI 80% VXUS 20% until I get closer to an age where I'm thinking about taking money out

5P0N63w0R7HY

Just an FYI the Roth IRA contribution limit this year is $7000 in case you felt like maxing that out which I think is a good move. Build up an emergency fund in a money market fund to last 6-12 months of bare necessities. The rest, probably broad index funds diversified between US and international like VTI and VXUS.