If you're experiencing analysis paralysis about what funds to buy, ratios of each fund, and how/when to rebalance, consider Vanguard's Total World Fund (VT/VTWAX), which features the entire US market and a diversified blend of international stocks. It's roughly 60% VTI 40% VXUS, but the ratio shifts gradually depending of performance of stocks between VTI and VXUS. It's true you won't be able to take advantage of the foreign tax credit (if you're American) at the moment, and has a slighter highish expense ratio, but it's an all-in-one fund you don't have to tinker with and can set and forget. It's also true it has been underperforming the S&P 500 for 10+ years; however, if you backtrack to 1996, Vanguard's International Fund beat the S&P500 1/3 of the time. But what's most important is staying the course and being relatively diversified.
I just opened a Roth IRA and I went 100% VT. Thanks for really hammering in the importance of investing outside the US and checking my basis. I finally found a strategy I can stick to comfortably.
Would VT and VGIT be a good combination for a 2 fund portfolio. I was thinking VGIT instead of BND because of how uncorrelated us treasuries are to stocks and how corporate debt is highly correlated with stocks.
I use it as a modified John Bogle 3 etf fund...but instead of doing 60% US , 20% VXUS and 20% BND....I simply do 80% VT with 20% BND. It comes to almost the same thing exactly exactly fund manager does the rebalancing part within with stocks part.
Yes! I really like him. I have been investing it alongside multi-factor ETFs in and outside the US such as AVUV, AVDV, AVES, QQQM, SCHD, IXC and Bitcoin. - 20 VT - 20 AVUV - 05 AVDV - 05 AVES - 20 QQQM - 20 SCHD - 05 IXC - 05 Bitcoin
Hard to convince people to invest internationally when US has outperformed for so long. People don’t want to hear about expected returns; they just see US outperformance recently as a sign that “the world has changed” and us old fuddy duddies are living in the past. I wouldn’t be shocked though if the same people are declaring the death of US equities in 10 years. 🤷
@@OptimizedPortfolio you only need to see it’s performance and its underwhelming. Everyone who loves VT is speculating that international stocks come back. Thinking that the US isn’t international or that technology doesn’t exist. This isn’t 1970 anymore
Sorry, but you left out the one CRITICAL reason NO ONE should invest in VT. Foreign Tax Credits. Because the USA is the largest component in VT it is considered a domestic index fund so it does not qualify for foreign tax credits. That means you will be taxed TWICE on your investments. Once in their country and again in the USA. This single reason is why NO ONE should buy VT. You should buy VTI and VXUS. VXUS will qualify you for the foreign tax credit.
1. Doesn't matter in tax advantaged accounts. 2. FTC doesn't apply only for years US is > 50%. Not guaranteed to happen every year. 3. I've mentioned FTC in plenty of other videos about VTI, VXUS, etc. This video is solely focused on VT per se for its ultimate simplicity, which can be extremely valuable. 4. Absolutes like "always" and "no one" have no place in finance. 5. FTC is not as simple as you make it out to be: www.bogleheads.org/forum/viewtopic.php?t=291409 In any case, thanks for the feedback.
What do you think of the VT ETF from Vanguard? Do you own it?
Here for the algorithm. Keep the good stuff coming.
@@couldbe8348 🙌
If you're experiencing analysis paralysis about what funds to buy, ratios of each fund, and how/when to rebalance, consider Vanguard's Total World Fund (VT/VTWAX), which features the entire US market and a diversified blend of international stocks. It's roughly 60% VTI 40% VXUS, but the ratio shifts gradually depending of performance of stocks between VTI and VXUS. It's true you won't be able to take advantage of the foreign tax credit (if you're American) at the moment, and has a slighter highish expense ratio, but it's an all-in-one fund you don't have to tinker with and can set and forget. It's also true it has been underperforming the S&P 500 for 10+ years; however, if you backtrack to 1996, Vanguard's International Fund beat the S&P500 1/3 of the time. But what's most important is staying the course and being relatively diversified.
I just opened a Roth IRA and I went 100% VT. Thanks for really hammering in the importance of investing outside the US and checking my basis. I finally found a strategy I can stick to comfortably.
Glad to hear it! :)
Great video per usual. Don't own VT per se, but have globally diversified portfolio with a tilt toward SCV.
Thanks!
Great video as always. Let's compare VT to AVGE and DFAW
Thanks for watching and for the suggestion!
Ditto that
100% VT in my Roth IRA. But for my employer retirement fund it's not available so I try to match the world market cap as closely as practical.
Awesome!
No bonds no gold?
Would VT and VGIT be a good combination for a 2 fund portfolio. I was thinking VGIT instead of BND because of how uncorrelated us treasuries are to stocks and how corporate debt is highly correlated with stocks.
I think that's a solid idea, yes.
I use it as a modified John Bogle 3 etf fund...but instead of doing 60% US , 20% VXUS and 20% BND....I simply do 80% VT with 20% BND. It comes to almost the same thing exactly exactly fund manager does the rebalancing part within with stocks part.
Thanks for sharing! I love simplicity!
Agree, diversification it is the only free lunch. VT / VWCE Europe, unfortunately with 0,22 of cost.
Thanks for sharing!
Yes! I really like him. I have been investing it alongside multi-factor ETFs in and outside the US such as AVUV, AVDV, AVES, QQQM, SCHD, IXC and Bitcoin.
- 20 VT
- 20 AVUV
- 05 AVDV
- 05 AVES
- 20 QQQM
- 20 SCHD
- 05 IXC
- 05 Bitcoin
Thanks for watching!
Keep up the great work. Big fan
Thank you!
감사합니다. 많은 도움이 됩니다. Thank you
Thanks for watching!
Just last night I decided I'm going to invest in VT (and VEU!) Great video!
Awesome! Thanks!
VT and chill ☝️😎 👍
😎
👊😎💰
great video
Thanks!
I believe India is in for a long term growth period. What is the best fund or way to invest in an all-India market?
Not sure
REITs , Etfs , etc etc ..what platform do you use normally ?
I paired positions in VT & IDVO. SoFarSoGood...
Thanks for sharing!
VWRL in Europe👍
Thanks for sharing!
Good bye, Portfolio Visualizer. It was nice while it lasted.
Yep :(
One can still do back testing up to 10 years for free and do other things like financial goals. But yeah I am with you.
@@kumarbrowns They even kept the old one alive but instituted the new 10 year limit on it. Slap in the face. legacy.portfoliovisualizer.com/
I use VWRA
Thanks for sharing!
Love VT, prefer AVGV
Thanks for watching!
My M1 brokerage account is 80% VT 20% AVUV!
Thanks for sharing!
FTSE sounds like footsie
Yea that's how people say it, like CRSP is "crisp."
I own it... alongside messily (and a bit shamefully) owning vti, vea, vwo, avuv, avdv, aves. Oh well!
Sounds similar to me.
Hard to convince people to invest internationally when US has outperformed for so long. People don’t want to hear about expected returns; they just see US outperformance recently as a sign that “the world has changed” and us old fuddy duddies are living in the past. I wouldn’t be shocked though if the same people are declaring the death of US equities in 10 years. 🤷
Indeed. That's why I'm on here trying to enlighten those folks.
Cope. It aint 1970 anymore
Awful choice
Probably not. Thanks for watching!
@@OptimizedPortfolio you only need to see it’s performance and its underwhelming. Everyone who loves VT is speculating that international stocks come back. Thinking that the US isn’t international or that technology doesn’t exist. This isn’t 1970 anymore
Sorry, but you left out the one CRITICAL reason NO ONE should invest in VT. Foreign Tax Credits. Because the USA is the largest component in VT it is considered a domestic index fund so it does not qualify for foreign tax credits. That means you will be taxed TWICE on your investments. Once in their country and again in the USA. This single reason is why NO ONE should buy VT. You should buy VTI and VXUS. VXUS will qualify you for the foreign tax credit.
1. Doesn't matter in tax advantaged accounts.
2. FTC doesn't apply only for years US is > 50%. Not guaranteed to happen every year.
3. I've mentioned FTC in plenty of other videos about VTI, VXUS, etc. This video is solely focused on VT per se for its ultimate simplicity, which can be extremely valuable.
4. Absolutes like "always" and "no one" have no place in finance.
5. FTC is not as simple as you make it out to be: www.bogleheads.org/forum/viewtopic.php?t=291409
In any case, thanks for the feedback.
Vt is trash
Nah
@@OptimizedPortfolio yah
I roll my own VT with vtsax/vtiax to take advantage of the foreign tax credit
Niccce! 😎
@joshsantos9965 yep all intl is in taxable. I wonder how this kind of "optimization" affects sequence risk