Does International Investing Still Make Sense?

In this video, I'll make the case for why it still makes sense to continue investing at least some money into an international index fund or ETF.

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The debate never seems to end when we talk about whether or not it makes sense to invest some of your money into an international index fund or ETF. Many people are torn because based on recent history, U.S. index funds and ETFs have outperformed international by a large margin. If you invested $10,000 into a U.S. stock index fund/ETF and the same amount into an international index fund / ETF then after 30 years your U.S. portfolio would be worth $175,000 and your international portfolio would only be worth $41,000. That's too big of a difference not to question if it still makes sense to even bother investing some money into international funds.

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Disclaimer: This video is for entertainment purposes only. Everyone's situation is different so do your own research before making any decisions with your money. If you need help then contact a Certified Financial Fiduciary before trying anything that is mentioned in this video. I prefer a Fiduciary financial advisor that charges an hourly fee as opposed to an ongoing fee based on a % of your portfolio. Always remember that incentives determine the type of advice they give you so one that charges an hourly fee is less likely to be problematic.
#indexfunds #etf

[JarradMorrow]

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[smpoinde]

I'm at 75/25 us to international. I think I read it in random walk on Wallstreet. It seems a little high but I do remember Bogle saying that it doesn't matter if its that high as long as you don't keep changing your allocation. I don't mind the risk because I do have a pension and rental income. I'm 42 and I still have some growth to gain before I need to be conservative. I'm also an avid traveler and it confirms my, your belief that our country is incredible but I've seen some serious potential in other parts of the world. I don't mind the risk of investing in their future

[dawsonspath]

Love your channel! - I have very little International and am considering increasing some as you suggested. I don't have much in that bucket because of the past 30 year+ performance and comfort with US, just as you mentioned. Appreciate your content and very sound advice that you consistently provide! Also appreciate the little things like "Don't do it because I said so now, you need to do it for you or you will run when it gets tough" (paraphrased)

[hernantomassini]

First time I see your channel, you have great content!

I'm starting to hold VT for the sake of simplicity + avoid the temptation to rebalance US/international stocks.

[OnCashFlow]

Immediate thumbs up for Starsky and Hutch. I have 20% International stock index funds, and I'm holding out for the long run. I have it in my portfolio because of political risk, diversification, and because the rest of the world may become a larger share of the pie in the future.

[doomshallot]

my allocation is whatever the market decides. My favorite index fund is VT because it's completely unbiased. It just matches the market capitalization of the world for every stock. At the time of this comment it's roughly 39% international

[NelzOrElse]

The last part of this video where you suggested to wait, that was really awesome. Thanks for a great genuine video.

[oriolvaquer]

I am not in the US and my index fund portfolio includes 60% US, 30% Intl, 10% Other. Thanks for the content you prepare !! I've been following you for quite some time.

[TheDistrict]

Thanks for the videos. I actually started investing in an international index fund abut 6 months ago in my Roth IRA. I am actually doing a 80%/20% split between US/International

[jakecotroneo]

Currently at
45-us large
25-us mid
20-us small
10-international

I am uncertain going over 10% as i find international markets more complex. Developed/emerging/etc. would be great to see a video going into the depth of different international equity classes to help raise my understanding, therefore my confidence.

[lukeh]

love the last bit of the video about stepping back and having a think. not many ppl on here mention it and i think it is so important!!

[jeremytorgersen]

The more I have learned over the years, the more comfortable I am taking risk investing internationally. I prefer 40-60 percent of stock allocations to international.

[OnmywaytoFI]

Our international allocation is less than 5%. Will be adding more / reallocating over the next year. Our goal for our retirement, non brokerage, is to have around 15% global. Will do that mainly by buying more VT and VXUS.

[shun]

Investing internationally is to prevent low returns of us stocks for decades, like what happened to nikkei. Now international is extremely cheap by historical standards, which imply higher returns. I am 60/40 through global all cap etf which is the global market cap. Let's be honest here, the US stock market is an anamoly, not the rule

[Chris-nbrt]

Jarrad, love your channel! You should do an M1 portfolio update.

[jordanosborne]

never have all your eggs in one basket even if you think its the best basket of them all

[seriousfaith]

Great video... I keep 20% of my stock allocation in international funds. I hate them sitting beside a US Index.. but I'm also old enough to remember the 80s when 8/10 of the largest companies in the world were Japanese. Will it happen again? Maybe or maybe not but I put a portion of my assets there for the long haul.

[zmack]

Investing in stoicism along with international and US is wiser as Stoicism will take care of the mental vicissitudes that come with the ebbs and flows of the markets!!!

[iggy]

My top 3 ETF’s on my portfolio are VTI, VFH and SCHD. Don’t have any international exposure nor planning to have one. I’ll stick with US economy. Just my .02

[danielwbader]

I live in Canada, but for the purpose of this comment, I'll define "international" as "outside the U.S.A.".

I currently have about 50% of my money in the USA, 20% in Canada, 17% outside North America (about 1/3 in emerging markets), and 13% in fixed income. I've chosen this as a healthy balance between mirroring the total world market, and some of my own investment preferences, like having some extra money in Canada (no withholding taxes!) and some fixed income to stabilize things. I plan to bring down the fixed income to 10% and the non-North America up to 20% when my next GIC matures.

I've consider going 80% USA, but ultimately, I don't want to risk losing everything. There are less things that can got catastrophically wrong if I diversify my investments, and I'd rather retire with less money than risk not being able to retire at all.