VXUS
Vanguard Total International Stock Index Fund ETF Shares
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Best investment strategy for self controlled 401K
Portfolio Review: 3–5 Year Horizon, Moderate Risk
Inherited 200k from grandmother. What is the best move?
8 Investment Lessons I Learned from Stay Calm by David Booth
is this a good growth focused Roth IRA asset allocation?
I'm only riding on SPYM and VXUS right now, is that the move?
Canadian who has roughly US$30k–$35k for the long term, looking to invest in the market. Unsure of the best long-term "boring" buys that my American friends can recommend. Do ya'll have any suggestions?
$119k VTI/VXUS long position YOLO. I'm a wild and crazy guy.
What’s the best way to draw down from a money market fund?
Thoughts on FZROX and FZILX over VTI and VXUS in a Roth IRA?
Why are all my individual stocks down but index at ATH?
What are your Top ETFs Picks so far this year? Beyond VOO, VT, VXUS?
I'm deciding to sell NASA (tema) etf for tax loss harvesting, since I made around $300 in profit so far in 6 months. Should I do it or no? Needed thoughts.
Thoughts on the "double dipping" portfolio ive been building
I wish I never invested into LUNR and NASA. been waiting for a few weeks to sell, but ofcouse dip keeps dipping....
Best Way to Diversify Brokerage vs Roth IRA?
Choosing Between Lump Sum and Weekly DCA VTI
40% of Stocks Experience Catastrophic Losses, and the Best Performers Suffer -69% Drawdowns on Average
39M tech PM. My RSUs quietly became 55% of net worth and I didn't notice till last week
I invested $6000 for the first time in February and I'm down 22%
VOO is $5 billion away from becoming the first ETF to hit $1 trillion
60 VTI/ 30 VXUS/10 VMFXX. Should I (33) rebalance to include bonds?
Too much of my portfolio is from RSUs - how would you diversify?
I spent 6 years trying to beat the market. Mostly I just learned how hard that is.
Critique the direction of my 14yo son’s Roth IRA we started this year
How does this mixture look for my 14yo son’s Roth IRA?
What $10k invested in 8 major indices would be worth today *PART 2*
What $10k invested in 8 major indices in 2011 would be worth today
Roth IRA Allocation at 18 - Part 2: Revised portfolio After Feedback
Alright I got roasted before and changed up my portfolio. How does it look now after rebalancing without heavily investing in anything in a while?
What do you think of the growth section of my portfolio?
Aggressive Roth IRA at 18 – What Would You Change?
Spacex, OpenAI, and Anthropic IPOs are investment opportunities and don’t let anyone tell you otherwise
Why not use international index funds (VXUS, VTSNX) to avoid or hedge against “Space X risk”
used to dread rebalancing day, now it runs overnight
After 200% gains - i’m out. (B-B-BUBBLE!)
Built my first Roth IRA portfolio in my 20's - here's my 6 ETF allocation and the reasoning behind each pick
Funds like VT that don't have the typical index problems
MAG7 is outperforming all the hype stocks posted about constantly, why do people not learn, holds true for last 40+ years
Little less than 3 months in and I think I’m doing well
Should we expect the same growth from US equities?
Should we expect the same growth from U.S. equities?
Help me re-balance my portfolio: 31F, single, hoping to buy a home in VHCOL area in near future but also work as little as possible?
85/15 VTI & VXUS in brokerage, 85/15 FZROX & FZILX in roth ira
Mentions
It's been a rough 3 months for $VXUS. I've added 250 shares to my port over this last week. You're not supposed to feel great when BTD, lol.
The main difference is the tilts: VT covers global stocks, VOO adds extra weight to large US companies, and SCHD adds a dividend focus. VTI+VXUS gives you a simpler way to set the US/international split.
I think VXUS is still enticing because everyone knows the US is at most 4 years away from something like this administration happening again. Maybe worse next time. Everybody has to create alternatives. You'll say nobody can but that's what the US said about Japan 50 years ago, about China 20 years ago. Airbus makes great planes Bombardier did too, a plane so good the US had to use a BS dumping claim to force its sale. They'll do it, they'll all do it because they have to.
Half of VXUS is Asia. It's only 33% Europe.
This is why VXUS isn’t the answer as it was before 2008. Regardless of what Reddit hive mind wants to be the case, the EU as far away as ever from getting its shit back together. In fact, I won’t be surprised if the US gets rid of its MAGA scum, while the EU piles on even more problems (in addition to the essentially insurmountable structural problems it already has) by electing the extreme right
Downvotes are the only currency here worth paying attention to, hahaha. We might have one more violent move to the downside but this is close to the market sentiment in March when I bought heavily and moved my port from stocks to $VT, $VXUS, $GLD, and EWJ My stress level went from peak to zero and I started to enjoy listening to Rock music again.
You realize that if you want to hedge your bearish tendencies this is the time to buy as a hedge. I'm trading $SOXL, but I bought more $VXUS which broke below its 200 DMA. Now the trend for world ex US indices may now be broken like Gold broke this year. But these are the times to buy.
put 100% on VOO/VXUS and stop trying to pretend you know anything about investing.
HAHAHA. The more I learn how the market and stocks are valued and traded, the more I realize buying indice ETFs like $VT and $VXUS is the way for me to go. I don't need some options trader or a DJT tweet blowing up a stock position I own. I can't identify what might be market fraud or guess when the stock market bubble will pop. I can BTD on $VXUS and $VT every time they hit their 200 DMA or maybe 100 DMA if I am feeling more aggressive. Obviously 1 day the dip may keep on dipping and that 200 DMA may no longer hold. But we could have a 50% correction tomorrow and all the indices would still be higher than when I was paralyzed by fear and was listening to all the doom & gloom starting in 2021.
r/Fidelityinvestments, Vanguard, and r/Schwab are all real brokerages, and excellent choices. If you choose Fidelity, then use FSKAX/FTIHX. Vanguard is VTI/VXUS and Schwab is SCHB/SCHE/SCHF. Dividends haven’t been a useful investing tool for over a decade and in general are not needed. Total return is all that matters. If you need cash; sell stock. Dividends are just a forced sale; a performance drag; and a tax drag. Essentially, you’ll have more money if you don’t invest in a dividends. You can keep your saving in your money market account in Fidelity, Schwab, or vanguard; most HYSA don’t actually return anything. Some other resources to explore: r/portfolios, r/bogleheads
hmm, if you’re 15m in, probably best to go for the simplest: a total world fund like VT or just a mix of VTI + VXUS. it’s hard to pick one that’ll beat the rest, so a balanced split gives you the upside of each. just keep contributing and let comp do the rest.
your instinct is right, if every other account is 100% S&P then piling more VOO in here doesnt really diversify you. VOO and VTI overlap a ton too since the S&P is most of the total market by weight, so swapping one for the other wont change much. if you want actual diversification the easy add is international like VXUS, or a small cap fund. even 20 to 30% in those balances out four accounts that are all large cap US. on the income stuff, SVOL and JEPI/JEPQ sell options so they give up a lot of upside in big up years. in a Roth where everything grows tax free anyway that trade usually isnt worth it unless youre close to needing the income. SCHD is fine but its still mostly big US companies so it doesnt diversify you much either. also worth seeing if you can roll some of the old 401Ks into one place, four separate accounts is a pain to rebalance
Yes, read your other replies, and having a government pension changes everything imo. In that case, I'd have 1 year cash for emergencies, and unexpected expenses, and then have everything else invested in the highest return I was comfortable with- VTI and VXUS would be my choices. Great Job!
My port just turned Green. I added to $EWJ, $VXUS, and $EWT. The $SOXX are about to turn Green. The bottom is in, boyz. Crude Oil, DXY, and US 10 yr are moving lower.
VOO and VXUS are good and don’t require much thought. Just keep contributing when you can. I wouldn’t mess with BND in your 20s.
Where is the 7% written down? People repeat it like it's a term of the account. VOO and VXUS can go flat for a decade and that number doesn't change. Also BND in a portfolio this young mostly just slows it down, but that's a separate argument.
Don't listen to anyone on this subreddit. It's mostly Geezers who have no clue what they're doing. Do yourself a favor and throw all your $ or 90% of it into an ETF or a couple of ETFs. Maybe do some research into long term investing. VOO + VXUS Or VT Or VTI (+VXUS) ^All good choices^
I just wait until major ETFs come close to their 200 DMA to buy. $VXUS has been trading around 200 DMA for a couple days now so I’ve already bought. It might not work but everyone needs a plan. And usually it’s not buying the hot stocks that Reddit is cheering as that usually means they are expensive
> The DXY is pushing 102 and crude oil is pushing $100. This is when you buy $VXUS and other world ex US ETFs. You buy low with artificially high USD. yeah, but presumably that guy was talking about the people who already bought and have shares now that they bought for WAY more than they're worth today. you're saying this is a great time to buy, which means all 3 of us are probably on the same page that a few months ago was NOT a great time to buy.
VOO- S and P heavy, VT for international exposure. SCHD for dividend income and AI bubble safe. I have the realization of yes I know there's overlap. VTI plus VXUS isn't a bad deal either. US heavy fund + international fund
The DXY is pushing 102 and crude oil is pushing $100. This is when you buy $VXUS and other world ex US ETFs. You buy low with artificially high USD. As soon as crude oil tanks world ex US stocks are going to rip much higher.
Please explain why VOO+VT+SCHD over just VTI+VXUS?
VXUS and EUR bros back to the gutter.
I did, over and over again. I made 200% with lots of smaller gains of from fresh cash I put in them I dump it into VTI/VXUS when I feel like I've made enough. Sometimes I sell in chunks, sometimes I sell it all.
$VT and $VXUS and chill. Money printers go brrrr is the world’s new norm to solve every economic problem. The resurgence of rock music tells me the kids are gonna solve all these never ending world problems. Bet on the world over the world ending: )
VXUS is trash…and is going big-time if VTI goes down. Europe is dead and doubling down on regulation, Canada is irrelevant and no one wants CCP stocks.
15% - 20% including 5% EM. Mostly on VXUS
About 30 percent in VXUS. Pretty boring.
I’m 70% VTI and 30% VXUS across all my accounts. Probably should’ve just bought VT which is closer to 60/40 US/Foreign but I wanted a slight US tilt
Amazon Bonds Gold VXUS AVDV BTC All equal weight. 😝
I truly don’t understand shit like this. Even most of the schmucks who sort of know what they’re doing on this sub lose money picking stocks. If you’re a regular person that doesn’t live and breathe the market, just park 80/20 between VTI and VXUS and call it a day. The bogleheads are low cortisol chillers.
Fair point about VXUS, I also wanted to add that at 29 you can keep your more volatile stocks in a Roth IRA to dodge the taxes if one blows up
Forget about AI stock exposure. 80% VOO, 20% VXUS.
I'd give it a 7.5/10. Love the consistency, but I think you're making the portfolio more complicated than it needs to be. 1. Is 17 tickers too many ? I'd consolidate. VTI already covers most of those sector ETFs. Keep SMH, AVUV or VOE if you deliberately want extra exposure, but there's a lot of unnecessary overlap here. 2. Should I add bonds at 29, or is gold plus a yearly review enough? Yes, I'd move XLI, VFH, XLV and VCR into VTI. You're already getting exposure to those businesses. 1. At 29, with a long horizon, I wouldn't feel obligated to own them. Gold isn't a bond replacement though. More important is whether you can stomach a 40% drawdown without selling. 3. International is only about 5%. Too low? 5% is pretty light. I'd personally look closer to 15–25%, although a US-heavy portfolio isn't automatically wrong. I'd probably simplify to VTI/VXUS as the foundation, with a few deliberate small/mid-cap and semiconductor tilts. The $1,100 every two weeks is doing more for your long-term wealth than having the perfect allocation anyway.
I agree I have too many names. At the same time I done want to hold more than 10 percent max towards VXUS at 29. Caz I am not happy with the performance of the ETF since 2012. And also with the macro economic news it will definitely impact any country where imports > exports. Thanks for the advice I will definitely reassess my portfolio.
Too many names & VTI covers most of the indexes you're holding. I would hold more VXUS for international exposure (30% VXUS 50% VOO 20% individual positions). Keep it down to 5 companies tops if you're not a full time investor, it's hard to keep track of more financials/leadership than that. I'm just some guy so do your own dd.
17 tickets is too many. I would stick to a mix of VTI, VGT, and VXUS for the core holdings.
The problem is people don't just take the win and move on. I sold all my individual holdings over the last year, ending in July for a profit of over 200%<, a house, and put everything in VTI/VXUS and forget about trading ever again because I have a really good nest egg now.
Nope, just you. I took my tech gains weeks ago and put it into RSP, SGOV, and VXUS
On the chance this isn't a bot or troll: >My whole portfolio was AI stocks MU, NBIS, SNDK, LUNR, NVDA, AMD.. Well, stop doing that. Go to r/Bogleheads and do boring index funds: VTI + VXUS or anything comparable. Then just sit back and do nothing for 40 years. Either way though, you must have realistic expectations with investing: the 1.68% drop in the past 5 days is positively nothing. Even your index funds can drop 10-20% out of nowhere, or 20-40% in a true bear market/crash.
Most people can't outperform VOO. That's why VOO and other ETFs are popular. If quickly making a fortune in stocks was as easy as reading a reddit comment and jumping in, everybody would be doing it. It's bizarre to me that so many people don't understand this and choose to gamble their money instead. Some people get lucky yes, but most people don't. So unless you develop a magic formula, for almost everyone the best option is to just pick an S&P tracking ETF and feed your money into it and wait. There's room for some fiddling around: for example If you understand a particular area of the market really well, then more specific ETFs can also help you out, or maybe you want international exposure so jump in VXUS or similar. But ultimately for almost everyone broad market trackers are the best option, and for most people that means VOO. I've seen a handful of people get rich off trading random stocks - but I've seen a lot more ruin their lives. Meanwhile I've seen a lot of people get rich from investing in the S&P and being patient, and never have I once met a person who said "man I really regret investing in the S&P 10/20/20 years ago". Don't let greed ruin your future.
Most people can't outperform VOO. That's why VOO and other ETFs are popular. If quickly making a fortune in stocks was as easy as reading a reddit comment and jumping in, everybody would be doing it. It's bizarre to me that so many people don't understand this and choose to gamble their money instead. Some people get lucky yes, but most people don't. So unless you develop a magic formula, for almost everyone the best option is to just pick at S&P tracking ETF and feed your money into it and wait. There's room for some fiddling around: for example If you understand a particular area of the market really well, then more specific ETFs can also help you out, or maybe you want international exposure so jump in VXUS or similar. But ultimately for almost everyone broad market trackers are the best option, and for most people that means VOO. I've seen a handful of people get rich off trading random stocks - but I've seen a lot more ruin their lives. Meanwhile I've seen a lot of people get rich from investing in the S&P and being patient - and never have I once met a person who said "man I really regret investing in the S&P 10/20/20 years ago".
Max out 401k and IRA every year, invest ~60% in VOO or VTI, 20% VXUS, 20% bonds Or 0dtes
World ex US $VXUS is outperforming the US $VTI. It's crazy how the $SOXX mirrors $EWY. If you wanna know how semis will trade just watch KOSPI from the night before. The KOSPI ended green last night. If the DXY keeps moving lower I think we are gonna see a bounce in semis or $SOXX stocks today.
A simple VTI/VXUS-style stack isn't exciting but it keeps me from tinkering myself into a worse return.
No shame, I simply sold my GOOG and VOO FOR SGOV, VXUS, RSP, and a tiny tiny bit of QQQM
I thought & thought about buying $SOXL but decided to buy $VXUS and $VPL instead this am. They all move in the same direction; but I'm tired of stress of day trading. Hope it works for you as I'll get 10-25% of your move : )
$VXUS bounced off its 200 DMA this morning. I bought that EFT heavily for the 2nd straight day. A stronger DXY vs the other crap currencies and a US 10 yr above 5% creates a good buying opportunity for international ex-US ETFs in my opinion.
Generally a mix of ETFs with a few stocks here and there. AVDV, VXUS, VYMI, INTF I still also have about 10% in VGT (tech focus), and bit of avuv Im actually buying a few things today. SKHY (Ive bought around this price before and sold a month later for 30%) think it is good value at 140, MPT (kind of a stinker stock, but huge dividend that might shrink a little, but is getting unfairly sold ( I think) - Ive bought this stock around 3-3.5 a few times and sold above 5)
I’m not pulling out cash (or selling assets), but I started to get concerned about an AI bubble about 6 months ago so I paused all automatic purchases of the 6-10 high conviction stocks that I’ve slowly been accumulating positions in and instead put all of those DCA purchases to VOO/VXUS, which is slowly decreasing my allocation towards those stocks. I also upped my monthly automatic purchases of $SGOV which I’ll use as my emergency fund, but I’m about 5 years away from hitting my goal for that fund.
Needlessly overcomplicated, just go 70% VOO 30% VXUS. Wrong sub entirely for this anyway, you should be yoloing 0DTEs on MU/SNDK
Probably a mix of DGRO, VXUS, and SGOV.
Hey all, I just recently started investing, I put a little into VOO and VXUS today along with Microsoft which I just added. I also have a little bit invested into constellation. Should I add anything or stop investing into any of these?
My Roth IRA is heavily invested in VFIAX and VIGAX (with a smaller investment in VXUS). It's delivered good returns so far!
You're 19. No reason why you can't just ETF and chill for 30 years. I'm 27 and that's my plan for investing. Most of my port will be VTI & VXUS, with a small portion going to individual stocks. Also some Quantum computing ETFs. No sense in taking on a huge risk when you have a long time horizon.
Should I sell my VXUS and go in on NBIS again
I’m only in ETFs like VOO and VXUS. Can someone tell me to chill because I missed that part and don’t feel very chill right now
I moved the majority of my ETF holdings from VOO to VXUS/RSP, with a small slice in QQQM
Is it in a traditional IRA or cash? Make sure you know the laws around whatever account it was held in and find a tax accountant if you’re confused to help at least the first year. You don’t need a financial planner. When I received a $400k inheritance about 3/4 was in a traditional Ira so we have to do inherited Ira rules. We filled up our emergency fund, funded 529 for the kids, started a brokerage acct and using the drawdown or the Ira every year to fund our roths. Other than the emergency fund and 529, we lump sum invested in VTI and VXUS.
If you don’t need it right away. Do the best of both worlds. 250k VOO, remaining 250k, automatic investing on a weekly monthly. You can look into VXUS, SCHD, etc.
Open a fidelity or otherwise account put it in VOO VTI VXUS. And forget about it. Don’t put the app on your phone don’t look. Don’t touch it.
VXUS? More like V SUX amirite
VOO - 50% VXUS - 25% ISRG - 10% NVDA - 5% USAR - 5% CEG - 5% I'm 24 studying mechanical engineering & I want to start investing long term. How much should I put in roth ira vs taxable accounts? Any advice on the port is welcome I'm going for a basic core-satellite structure.
i get why you’re flagging the lack of international & mid‑cap exposure – it’s a legit gap. one way to address that without losing your AI tilt is to add a small‑cap domestic layer via an ETF like IJR or IJH, and a global equity wheel like VXUS or ACWI – you can keep the 80/20 core but boost diversification, and you’ll still see the upside during a tech upcycle. just keep an eye on concentration and maybe trim a bit of NVDA if the sector overheats.
Yeah, I'm semi-retired and I wouldn't want anything in QQQ if I'm in in SPY (which I am not). I'd recommend much more VXUS (or equivalent for your country).
Look into SPMO. Aggressive, but has highly outperformed the S&P over 1, 3, 5, and 10 year. History cannot predict the future, but it's been pretty solid compounding returns for me over my VOO allocation. For International, I use a 4 fund sleeve instead of VXUS to be diversified, but aggressive.
6/10. Diversify at least 25%. 25% on VXUS. 10% QQQM. 10% SMH. 55% VOO.
I think follow the smart keep it simple herd (ETFs like Ai tells you do use such as VTI and VXUS as examples) but also have a tilt towards something else (Fidelity Contrafund, Oakmark Select, or whatever). Some people may not agree with me here, but I’m sticking to both).
VT is basically a mix of VXUS and VOO. It's like a less bearish version of hedging with VXUS.
The American market is the only one that matters. VT isn't going to do anything voo doesnt. You could invest in VXUS.
I would however have to change by contributions then to stay on target for market weight. Let’s follow your example and say market weight starts at 50:50 for VTI + VXUS, and I invest $100 each month. Then the market shifts 20% up for VTI and is stagnant for VXUS, so now they are $60:$50 and now the market weight is 54.5:45.5. Now I would need to adjust my incoming investment contributions to match that, otherwise I’d be under buying VTI and over buying VXUS. I guess a more accurate way to describe it is that the split requires more active engagement with your portfolio in any kinds of manner from just buying VT, and that extra engagement can be a risk.
You wouldn't be selling it at all if it was low. It's too high, that's why you're selling. If you're doing that to buy more VXUS, that must mean VXUS is down even more than 2% and you are catching the dip.
Here are the big three reasons: 1) to get the credit, you have to be in a taxable brokerage since in tax advantaged accounts it doesn’t matter, which from an efficiency point should only be done after maxing those accounts like IRA, HSA, and 401k. A very small portion of people can do that, but let’s imagine you do. 2) doing a split of VTI + VXUS instead of just VT means you have to manually maintain your market weighted ratio, meaning periods in between your rebalance checks risk underperforming the whole market. 3) because you must rebalance, you necessarily are checking your portfolio regularly, and as I mentioned in earlier comments, checking your balance frequently can lead to lower long term returns. So if you max out your tax advantaged accounts, if you can avoid behavioral panic from frequent checking, and if you consider the tax credit and expense ratio edge better than automatic market rebalancing funds that don’t miss the shifts, then sure do the split. It just seems like more work and risk than the benefit it reaps to me.
Here is the big three reasons: 1) to get the credit, you have to be in a taxable brokerage, which from an efficiency point should only be done after maxing tax advantaged accounts like IRA, HSA, and 401k. A very small portion of people can do that, but let’s imagine you do. 2) doing a split of VTI + VXUS instead of just VT means you have to manually maintain your market weighted ratio, meaning periods in between your rebalance checks risk underperforming the whole market. 3) because you must rebalance, you necessarily are checking your portfolio regularly, and as I mentioned in earlier comments, checking your balance frequently [can lead to lower long term returns.](https://blog.odinvestor.net/frequent-reduces-returns/) So if you max out your tax advantaged accounts, if you can avoid behavioral panic from frequent checking, and if you consider the tax credit and expense ratio edge better than automatic market rebalancing funds that don’t miss the shifts, then sure do the split. It just seems like more work and risk than the benefit it reaps to me.
\> It works the opposite. If funds are down then you would be buying into that rather than selling out of it. Let's say VTI is down 2% on the day you sell it, to buy more VXUS (which let's say is up 2%) in order to rebalance. Then you've just bought high and sold low, which wouldn't be an issue with VT.
With $4.7 million invested in your early 40s, you've made it, congratulations! That's real wealth and you should be talking to your accountant and maybe even a fee based advisor, not broke college kids on Reddit lol. In that situation, if it were me, I'd just put 25% in a mix of treasuries, 5% in GLD for inflation/currency debasement, 20% in VXUS and the rest in VTI. The reason for the 25% treasuries is because you mention you may want to retire in 10 years, otherwise if you liked your job and wanted to keep working, you could have even less treasuries. I probably wouldn't even be contributing anymore if I already had $4.7 million- assuming a 7% return, you'll have 9 million in your early 50s. If I liked the house i was in, i'd split extra money between bucket list things like vacations and dream cars and paying off the house. I assume you have a high cost of living, but with a paid off house and $9 million in retirement, you should be able to live nicely in any city. It's a cliche, but health isn't guaranteed, people die in their 50s, you've saved a lot, have some fun now. Congratulations!
Also international developed markets average around 10% annual historical returns just like the S&P. So if you started investing at 30 as you suggested, 500 a month into VXUS and took just the foreign tax credit and reinvested that, just the tax credit and growth alone is 335k at 75. That could be very helpful if your old age, and is money simply from making one small change. But yes, it would be way too much of a headache for anyone to auto invest into two ETFs as oppose to just one and 335k is t that much anyway so let’s go with your plan.
Yes you do all of those other things plus split VXUS with another ETF to capture the foreign tax credit. But you are right, should just throw that money away.
If you don’t know enough to pick individual stocks, what makes you think you can pick an ETF? IMO just VOO or VTI and add some VXUS and you’re done.
Yes, me too. I've done well with the recent bull market trading, but I'm currently switching to long term investing: 35% SCHG in Roth, 30% SCHD in Roth, 25% VTI in brokerage, and 10% VXUS in brokerage. DCA investing weekly and holding through ALL dips and market turmoil.
i tried to focus on individual stocks a few years ago but then realized i don't have the time, energy, and dedication to do so. i'm just throwing all extra cash into VOO (sometimes VXUS) and hoping for the best
You are trying really hard to be “right” while advocating to make less money investing in the same stocks. I auto invest into both VTI and VXUS each month. Isn’t hard at all and doesn’t take much effort to keep my general ratio going. It doesn’t have to be exactly 70/30. I’m not cool with leaving over 100k on the table because I don’t want to make 1 simple change but you can do whatever you want, you aren’t going to convince me you are right on this one, sorry.
Because 1) most people should be first investing in a Roth IRA or 401k, meaning the foreign tax credit is not even a factor, 2) most people don’t start investing when they are 18, [they start around 30](https://www.investopedia.com/when-each-generation-starts-investing-8782149) so the real returns are much lower, and 3) there is a cost to the added complexity of managing your optimal balance of VXUS + VTI instead of VT, being that you are statistically more likely to panic or miss the correct market performance because you are more engaged with your balance and it doesn’t auto rebalance. That alone could cost you more money in the life time of your investing than the tax credit. So most of where people invest it doesn’t matter, the added returns aren’t that big, and even the small extra step could open the door to costly mistakes. If you as an investor think that it’s worth it, great go ahead, I’m just saying I don’t think the juice is worth the squeeze. It’s a penny-wise/pound-foolish kind of thing, like there are way more valuable moves to make before this should even be on the average investor’s radar.
If you invest 500 bucks into VXUS monthly starting at 18 as a retirement strategy, when you get to 65 you can expect to have 2 million bucks. Over that time, you will have received somewhere between 60,000 to 90,000 dollars in foreign tax credit plus around 3k to 5k every year going forward. Thats pretty significant and all simply because you chose to split VXUS with VTI or VOO or some other ETF instead of VTI. One simple change. Not sure why you arguing against doing it when it only makes you more money
I like VXUS. OPs alternative was VOO. I’d always add VXUS.
s old? and youve already got retirement accounts and a ten year macro thesis going? jeez. look, nobody knows if the sp500 underperfoms over the next decade. nobody. the exact same people saying it now were saying it in 2014 and then just sat there while VOO compounded double digits. VXUS has been about to break out for as long as i can remember, every year theres a fresh thread about how international is cheap and then it just doesnt happen. small cap value guys do the same thing, they all quote the same chart from 1926 and wait. you have like 50 years, buy VTI or VOO and stop, throw in some VXUS if it keeps you from fiddling with it every month, the real mistake here is thinking anyone can call which decade belongs to who
Foreign tax credit is very small, like $10,000 of VXUS only credits back like $20 annually. Sure every bit counts, but if the added complexity of monitoring 2 ETF balance ratios is greater than the money saved, it’s simpler to just go VT. It also doesn’t matter at all if it’s in an IRA since it’s already tax-advantaged.
Only problem with VT if you are in the U.S. is you lose the foreign tax credit. Making VTI/VXUS superior in that area
since it’s a Roth, you don’t get any foreign‑tax‑credit benefit, so the 65/35 split vs. all‑world is effectively the same over time. VT will hold the same mix for you, so if you’re happy with a set‑it‑and‑forget approach pick VT. if you feel like tweaking the U.S. to int’l ratio, go VTI+VXUS. either way Vanguard or Fidelity will just give you the same ETF; pick the one that’s easier to use for you or has lower lag/fees.
Thank you so much for taking the time to share such detailed and thoughtful advice. The long-term perspective on market timing versus time in the market makes total sense. The automated broad-market approach (VOO/VXUS/VXF) sounds like a very solid, low-stress strategy I'm planning to set up biweekly buys for **VOO** as my core index holding based on your recommendation
A. "Most passive" isn't passive. That's a ranking, not a definition. You didn't refute anything here. B. You just admitted VT vs VTI+VXUS is a choice with "minor changes." So **it IS a choice**. Thanks for conceding my point. The choice doesn't matter much =/= it’s not a choice Learn the difference. Your whole argument is: VT broad enough = passive S&P 500 not broad enough = active That’s cute and all, but it’s not a definition. Where's the cutoff? 1k stocks? 2k? You don't have one. You just drew a line where it was convenient for you. Pick a consistent standard or sit down.
A. There is literally no security more passive than VT so you're spewing nonsense. And B. a mix of VTI and VXUS is more or less the same thing with only minor changes. You're not choosing to put zero money into most of the market by doing this So no, what you said is not "my logic". Putting your money into the sp500 is not passive investing.
By this logic, selectively choosing whether to invest in VT, VTI or VXUS is also not passive.
Neither can I, lol. We are all gambling here. I'm beginning to think public sentiment is piss poor and will remain piss poor b/c people hate inflation and 2019 prices are never coming back. The job market is also much stronger than people want to admit. Buy a combo of whateve risk tollerance you want b/w $VTI, $VT, $VXUS and chill.
People shouldn't be buying the sp500 and telling themselves it's a passive strategy anyway. You're making an active decision about which sector or the market to buy. Passive is VTI and VXUS. SP500 is a subset of VTI and thus tracking it is active management.
I have a fidelity Roth and I use their low cost index versions of VTI and VXUS. For VTI it’s FSKAX and for VXUS it’s FSPSX. They use the same index and everything. I like those ones over FZROX & FZILX because the zero cost ones use a proprietary index that’s why they don’t have fees. It’s like name brand vs private label. Is it the same? It might be but I’ll pay the .01% fee for FSKAX. It might as well be zero. And you get the same index as VTI.
It is closer to 33% of VTSAX versus about 38% of VOO. More importantly, when you combine VTSAX with VXUS, you own substantially less of the biggest 10 companies than you would by holding VOO alone.
Instead of putting everything into the S&P 500, I would consider broadening the portfolio in two ways. First, add some international exposure, perhaps 20 to 40% through something like VXUS. That gives you exposure to companies outside the United States rather than betting entirely on the US market. Second, use a total US stock market fund like VTSAX instead of only the S&P 500. The S&P 500 is essentially large US companies. VTSAX owns the entire US stock market, including large, mid, and small companies. Roughly 20% of the fund is outside the large-cap companies that dominate the S&P 500. The idea is not necessarily that small caps or international stocks will outperform. It is that you are diversifying across more companies, company sizes, and countries. You are making fewer bets on which particular part of the stock market will win over the next 20 or 30 years.