In the book “ETF Stocks”, I encourage everyone to consider dispersing asset investment around the world, firstly to disperse the risk of investment concentration, and secondly to increase the chances of investing in good companies. To invest in the stock markets of the world, the easiest way is to buy a VT, or you can buy VTI (all US) and VXUS (non-US) to match.
I personally choose the combination of VTI and VXUS. The main reason is that I can control the proportion of US and non-US holdings. If I want to be the same as VT, I will account for 60% of VTI’s planned assets and 40% of VXUS. If I want to Increasing the proportion of US investment can increase the proportion of VTI, or buy VOO (S&P 500) or VO (US mid-cap stocks) or VB (US small-cap stocks) with a little money from VXUS.
If 60% VTI plus 40% VXUS is used, is it equal to VT? In fact, these two buying methods are somewhat different. First, let’s take a look at the number of constituent stocks and market share of the three tiers.
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Single investment, fixed annual quota, fixed rebalancing, performance difference between VT and VTI+VXUS Single investment, annual fixed rebalancing, performance difference between VT and VTI+VXUS
