$VXUS holds 8,790 stocks.. That’s EIGHT THOUSAND, SEVEN HUNDRED and NINETY….. To some, that sounds like diversification on steroids, over kill… HOWEVER, those 8,790 stocks are actually equivalent to owning only about 239 equally weighted stocks. That’s its effective number of stocks. It's a lot more than the S&P 500... but not as much as I personally thought! And that’s just ONE of the things I found digging into VXUS, Vanguards Total International Stock Index ETF. I also found some pretty surprising differences between VXUS and the S&P 500 ($VOO / $VFV ) that made me rethink what “international diversification” means to your portfolio. I broke down the performance, valuation, holdings, sectors, countries and risk in my latest VXUS deep dive. I’d love to know your perspective on this! https://youtu.be/NcafSSVfMXs It’s definitely more complicated than the “US is expensive, international is cheap” .... Would you include international stocks in one ETF as part of your portfolio? Why or why not? Let's get this conversation going guys!!!
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24 Comments
Marcos @mcolodner13 · 6h
I hold mostly VOO and VGT, and I have 15% of my portfolio in VXUS to some diversification outside the US for when they don’t do well.
Harvey Specter
@harveyspecter · 6h
i am thinking about adding vxus to my rrsp next year so ill definitely give this a watch when i have time.
Nate
@hoodnate · 31m
had no idea 8790 stocks boiled down to 239 effective. changes how i think about diversification
EVID Wealth@evidwealth · 6h
I’ve got to ask… are you suffering through calculating the effective number of stocks manually, or do you have a tool to provide you that information quickly? (haven’t watched the video yet if you answered it there, but I will definitely watch after the kids go to bed)
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