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  • Total international stock index fund

    Bogle originally said no to int'l investing than changed to 20% of your equity holdings.
    Over the last 20yrs Int'l has not done as well as US Total
    Most TD funds and Vanguard Life Strategy include int'l
    What are your thoughts?

  • #2
    Past performance does not guarantee future results. International has underperformed for a while. It will either continue to underperform, overperform, or perform equally to US equities over the next decade. The US inherently has some global exposure but it's probably a good idea to hold international.

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    • #3
      I have 35% in international and 65% domestic. Yeah it sucks to see it chronically underperform. The day I throw in the towel is when it will have a huge run.

      k everyone outside the US quit slacking off and make me look smart.

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      • #4
        Looking forward the UK, Japan, EU, and Canada all have dwindling demographics, no sparks of IT, and moribund banks.
        They limp along with food companies and old pharmaceuticals.

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        • #5
          Originally posted by jz- View Post
          Looking forward the UK, Japan, EU, and Canada all have dwindling demographics, no sparks of IT, and moribund banks.
          They limp along with food companies and old pharmaceuticals.
          And banks, don't forget banks. Switzerland, Lichtenstein and Luxembourg industries. But you can only have those "value adds" in very select juristictions.

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          • #6
            10% of total portfolio in international equity, skewed toward EM.

            Wouldn't begrudge someone skipping the class altogether, but I think a little exposure is nice.

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            • #7
              Originally posted by jz- View Post
              Looking forward the UK, Japan, EU, and Canada all have dwindling demographics, no sparks of IT, and moribund banks.
              They limp along with food companies and old pharmaceuticals.
              Lousy companies and industries and their countries can still provide a better return than great companies if the lousy companies are underpriced and the great companies are overpriced.

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              • #8
                Originally posted by jz- View Post
                Looking forward the UK, Japan, EU, and Canada all have dwindling demographics, no sparks of IT, and moribund banks.
                They limp along with food companies and old pharmaceuticals.
                International investing is a lot more than the first world. As for products, don’t forget oil, cars, banks, electronics (Siemens or Hua Wei anyone?), wind turbines, household appliances, chip manufacturing, mining, shipping…

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                • #9
                  By the way I think I am like 20% international. For me it is more a hedge than anything. But I accept the diversification argument. US is only up until it is not.

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                  • #10
                    I am 20-30% international.

                    This is asked every few months on this forum.

                    Vanguard recommends 30-50% international.

                    No one knows if international will do well.
                    Last edited by Tangler; 01-25-2022, 05:56 PM.

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                    • #11
                      20%

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                      • #12
                        60%

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                        • #13
                          I think you have a lot more international exposure than you realize, if you look at the top 10 market cap stocks, they are all derive a good percentage of revenue from outside the US.

                          VTSAX

                          Apple Inc.
                          Microsoft Corp.
                          Alphabet Inc.
                          Amazon.com Inc.
                          Tesla Inc.
                          Meta Platforms Inc.
                          NVIDIA Corp.
                          Berkshire Hathaway Inc.
                          UnitedHealth Group Inc.
                          JPMorgan Chase & Co.
                          These are the top 10 VTIAX stocks
                          1 Taiwan Semiconductor Manufacturing Co. Ltd.
                          2 Nestle SA
                          3 Samsung Electronics Co. Ltd.
                          4 Tencent Holdings Ltd.
                          5 ASML Holding NV
                          6 Roche Holding AG
                          7 Toyota Motor Corp.
                          8 Alibaba Group Holding Ltd.
                          9 LVMH Moet Hennessy Louis Vuitton SE
                          10 Novartis AG

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                          • #14
                            One needs to look under the hood when using a global diversification strategy.
                            Are you investing in the economies or are you investing in equities traded in that particular stock market? Two different objectives.
                            International is stocks traded in developed markets. This does not represent the population, consumption or growth.
                            Emerging Markets is also geographic.
                            BRIC was the dominant term, Brazil, Russia, India and China. China has been flipped in some index’s to developed.
                            By size, basically companies in the US and Intl(developed) all have global businesses. Emerging have limited business and few major companies.
                            The question is the diversification desired. Growth and profits of the companies or of the country or regions. Both US and Intl sell globally. That was Bogle’s logic of not needing Intl, geographic diversification was included in the US. No need for EM, they were covered as well.

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