I'm Canadian and put my USD into VT. I wish there was a fund like VT in CAD. As for my CAD investments I had to split into 3 index funds to get some semblance of global diversity with one that follows US, one that follows Canadian and one that follows world ex North America. Maybe that leaves Mexico in the lurch I'm not sure, but we are "investing" in Mexico for our xmas holidays, a week in PV!
VT is great for people who want one stop shopping for the stock part of their portfolio. Set the dividend to auto-reinvest and just leave it alone forever. That said, I don't own it. I prefer VOO and VXUS (VEU is another good choice). My reasons are three. First VT has an asset allocation of roughly 60% US and 40% international. That's a bit higher than what I am looking for as a starting allocation for non-US equity. Secondly, in order to maintain that asset allocation you are going to have a lot buying and selling that might not be needed if you break up the US and international allocations into separate funds. That is inefficient and may create added tax liabilities. Thirdly, the constant rebalancing also deprives you of the advantages of letting whichever asset is outperforming just run. If US or foreign stocks are really hot, you could lose a lot of compound gains by the constraints of staying within that 60/40% asset allocation. All of which said, for those who really want a basic two fund portfolio, stocks and bonds, VT is a good choice for the stock part. But I think it is sub-optimal and you are better off segregating the US and international components of your stock holding.
Same amount of trading. VT doesn't rebalance. It's global market cap weight. VT doesn't "maintain" any specific weight. That's the whole point. The main consideration you didn't mention is tax loss harvesting with VXUS in taxable.
Honestly, if I had to pick between VT or VTI, I’ll definitely pick VT. Why? VT has about 60% of US stocks and 40% International Stocks. Also, it hold more weight than VTI.
Love both these funds, but another reason someone may want to avoid these funds is to exclude Small Cap Growth (which historically has underperformed) by combining S&P500 and a SCV funds of choice (and international equivalents). Additionally, an investor may want to overweight Emerging Markets.
Nice content. I'm currently in VOO and EWW (betting for US AI and Mexico Nearshoring). The performance of these funds since 1997 is approximately the same, but the correlation seems to be pretty low. With EWW, you'd have avoided the lost decade between 2001 and 2011.
@@OptimizedPortfolio How often you would rebalance? Have you considered tax implications when you would have to sell a little bit of one of them to rebalance?
I own some VT and think it's great, but I still skew towards VTI and developed markets. I would consider going full VT, but I worry that some markets have lax reporting, rules, and regulations, and so may have a greater number of less honest companies. Maybe that's already priced into VT? 🤔
Hi, what is the global stock markets average annual return?Anytime i try and look up the global stock markets return i can only ever find the sp 500s annual average return which is 10%
Hi, congratulations on the video. One question. Is there an ETF identical to the VT Vanguard Total World Stock ETF but that the reward is cumulative? someone could help me? Thanks a lot
@@Ehh122 Technically the VTI + VXUS combo would be better for taxable because you'd get the foreign tax credit on VXUS, whereas VT is not eligible for one unless int'l stocks rise to more than 50% of the fund for a year. But nothing to obsess over if it's more trouble than it's worth to switch.
I have the total s&p in my Roth so that's why I'm in VT in my reg brokerage. I don't like VXUS because its returns are god awful. At least with VT, its the whole world. VT and chill!
![Vanguard Total World Index Explained [VTWAX | VT ETF]](http://i.ytimg.com/vi/OTpPNdUR2g4/mqdefault.jpg)
Do you "VT and chill" or "VTWAX and relax?"
Came hereto learn about VT, stayed because of the my favorite podcast’s t-shirt. The video was great too!
Thanks! :)
Really enjoy your quality contents a lot!
Thanks!
I added some small cap value AVUV to VTWAX in my roth ira.
Thanks for watching!
I'm Canadian and put my USD into VT. I wish there was a fund like VT in CAD. As for my CAD investments I had to split into 3 index funds to get some semblance of global diversity with one that follows US, one that follows Canadian and one that follows world ex North America. Maybe that leaves Mexico in the lurch I'm not sure, but we are "investing" in Mexico for our xmas holidays, a week in PV!
VT is great for people who want one stop shopping for the stock part of their portfolio. Set the dividend to auto-reinvest and just leave it alone forever. That said, I don't own it. I prefer VOO and VXUS (VEU is another good choice). My reasons are three. First VT has an asset allocation of roughly 60% US and 40% international. That's a bit higher than what I am looking for as a starting allocation for non-US equity. Secondly, in order to maintain that asset allocation you are going to have a lot buying and selling that might not be needed if you break up the US and international allocations into separate funds. That is inefficient and may create added tax liabilities. Thirdly, the constant rebalancing also deprives you of the advantages of letting whichever asset is outperforming just run. If US or foreign stocks are really hot, you could lose a lot of compound gains by the constraints of staying within that 60/40% asset allocation. All of which said, for those who really want a basic two fund portfolio, stocks and bonds, VT is a good choice for the stock part. But I think it is sub-optimal and you are better off segregating the US and international components of your stock holding.
Same amount of trading. VT doesn't rebalance. It's global market cap weight. VT doesn't "maintain" any specific weight. That's the whole point. The main consideration you didn't mention is tax loss harvesting with VXUS in taxable.
@@OptimizedPortfolio That's a very good point.
I like the more casual look.
Thanks!
Honestly, if I had to pick between VT or VTI, I’ll definitely pick VT. Why? VT has about 60% of US stocks and 40% International Stocks. Also, it hold more weight than VTI.
Agreed
Love both these funds, but another reason someone may want to avoid these funds is to exclude Small Cap Growth (which historically has underperformed) by combining S&P500 and a SCV funds of choice (and international equivalents). Additionally, an investor may want to overweight Emerging Markets.
Indeed. I do both of those things.
I own VTWAX and AVUV in my roth ira.
Nice content. I'm currently in VOO and EWW (betting for US AI and Mexico Nearshoring). The performance of these funds since 1997 is approximately the same, but the correlation seems to be pretty low. With EWW, you'd have avoided the lost decade between 2001 and 2011.
Thanks!
Great content
Thanks, Nico!
VT vs VTI + VXUS
VTI + VXUS is better for taxes
VT is better because it is always balanced
Which one to pick?
Indeed. Lower fees and tax savings (if taxable account) versus simplicity. Classic trade-off.
@@OptimizedPortfolio Which one are you picking if you had to for your taxable portfolio and why if you don't mind...
@@DennisMocheniat VTI+VXUS for that tax savings and slightly lower fee.
@@OptimizedPortfolio How often you would rebalance? Have you considered tax implications when you would have to sell a little bit of one of them to rebalance?
@@DennisMocheniat New deposits can go to the underweight asset to rebalance for a while. They probably wouldn't stray terribly far anyway.
I own some VT and think it's great, but I still skew towards VTI and developed markets. I would consider going full VT, but I worry that some markets have lax reporting, rules, and regulations, and so may have a greater number of less honest companies. Maybe that's already priced into VT? 🤔
Probably priced in.
Hi, what is the global stock markets average annual return?Anytime i try and look up the global stock markets return i can only ever find the sp 500s annual average return which is 10%
~6% going back about 2 centuries IIRC.
@@OptimizedPortfolio thank you
Hi, congratulations on the video. One question. Is there an ETF identical to the VT Vanguard Total World Stock ETF but that the reward is cumulative? someone could help me? Thanks a lot
Like an accumulating fund?
Hi, did you find an answer to your question? I'm looking for the same kind of fund.
VT or VTI/VXUS 60/40. what do you recommend?
Depends on taxable or tax-advantaged environment
@@OptimizedPortfolio I really appreciate you answering my question on an older video. is VT better for taxable?
@@Ehh122 Technically the VTI + VXUS combo would be better for taxable because you'd get the foreign tax credit on VXUS, whereas VT is not eligible for one unless int'l stocks rise to more than 50% of the fund for a year. But nothing to obsess over if it's more trouble than it's worth to switch.
Diversification for the sake of diversification will hurt gains in the long long run
Choosing to buy stocks beyond 1 single country out of nearly 200 in the world is not "diversification for the sake of diversification."
I have the total s&p in my Roth so that's why I'm in VT in my reg brokerage. I don't like VXUS because its returns are god awful. At least with VT, its the whole world. VT and chill!
Thanks for watching!
🙏🏾
🙌
Imagine an equal weight all world etf
One can dream.
1:42 enjoy average gains
That's the entire point of the Boglehead approach - we're guaranteed the market return.
@@OptimizedPortfolio exactly! nothing wrong with that either way.
Buy both funds. I wouldn’t recommend vxus because it very expensive!
No it's not...
Thanks for watching!