walkinwood
Thinks s/he gets paid by the post
I have a significant portion of my portfolio in international stock - almost all in Vanguards Total International Stock Index fund. My domestic stock allocation is mainly in Vanguard Total Stock Market Index.
I'm considering reducing my VTIAX exposure significantly and would like to hear your comments. Links to articles (non-paywall) on this topic are welcome too.
Here's my analysis:
The performance over the past 10 years and more has been dismal and has been a large drag on the portfolio.
Here's the total performance
Correlation: There is a strong correlation between the 2 funds. ie they rise and drop pretty much in sync when I view the long term price trends.
Globalization : There seems to be a reversal/stall in globalization which may mean that performance of these two funds may diverge in the future. On the other hand, that does not mean that, in absolute terms, VTIAX will outperform VTSAX by any meaningful amount. VTSAX already has a bunch of global stocks.
I'm considering reducing my VTIAX exposure significantly and would like to hear your comments. Links to articles (non-paywall) on this topic are welcome too.
Here's my analysis:
The performance over the past 10 years and more has been dismal and has been a large drag on the portfolio.
Here's the total performance
Fund | YTD | 5YR | 10YR |
VTIAX | -26.76 | -.70 | 3.31 |
VTSAX | -24.89 | 7.59 | 11.34 |
Globalization : There seems to be a reversal/stall in globalization which may mean that performance of these two funds may diverge in the future. On the other hand, that does not mean that, in absolute terms, VTIAX will outperform VTSAX by any meaningful amount. VTSAX already has a bunch of global stocks.
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