Vanguard Total Intl Stock Idx Fund (VXUS)

Investing with a long-term strategy has proven to be a great way to build serious wealth over time without taking on a bunch of risk or headaches along the way. Some key elements of this strategy involve simplifying things when you can and diversifying your investments across different markets and industries.

VOO, VXUS, GLD, SPY and DYNF led ETF inflows last week as the S&P 500 hit five straight record closes.

Markets hit new record with bets on a "Goldilocks" economy, but volatility persists. AI and international ETFs like QQQ, IVES and EZU could be good bets for 2H.

Tilting towards Global-Ex US stocks offers diversification benefits and reduces home country bias in portfolios. Vanguard Total International Stock Index Fund ETF provides broad exposure to international equities, capturing growth opportunities outside the US. Current market conditions make international stocks attractive relative to US valuations.

Investing doesn't have to involve hours of research, reading company financial statements, or being glued to finance shows. In some situations, doing those things can be beneficial, but it's far from needed for the average investor.

VXUS provides broad, low-cost exposure to international stocks, including emerging markets, making it a top choice for global diversification. Despite recent underperformance versus US stocks, international equities offer cyclical return potential and reduce sequence risk, especially in retirement. Recent US stocks' outperformance is driven by valuation expansion and growth, but history shows leadership rotates between US and international markets.

It's been a great year for international equity ETF investors. Will it persist after Nvidia Q1 results?

Investors are pouring billions into two international ETFs, VXUS and AVEM. Have a quick insight into the reasons.

Medalist funds that invest overseas. Financial advisor A points out that foreign stocks look historically cheap compared to their US peers. Forgoing them for US stocks would be passing on a rare buy-low opportunity. Financial advisor B claims that foreign stocks face hurdles that US firms do not. Poor returns over the past 15 years should be ample evidence that investing overseas is leaving money on the table. So, who's right? It's hard to say, and the debate over foreign stocks' future is more nuanced than our fictitious advisors let on. But for investors who find today's valuations more compelling than yesterday's returns, international dividend ETFs may be worth a look.

Even when you strongly disagree, it can be extremely valuable to consider opposing viewpoints. This article considers 5 popular investments most people should avoid like the plague. I view these investments through the lens of popular children's storybook lessons, and then conclude with an important takeaway.

In equity investing, the ongoing debate this year has been between leaning into domestic bias and diving into international diversification with intention. We know that good portfolio construction is all about risk management.

The Vanguard Total International Stock Index Fund ETF Shares receives a sell rating due to its lack of high-quality holdings and significant exposure to underperforming companies. Political uncertainty, a slowing economy, and cautious Fed policies make targeted financial strategies more effective than investing in benchmarks. VXUS has underperformed the S&P 500 and peers due to its narrow focus on non-US companies and limited exposure to top-performing American sectors.

If you want to make money on popular ETFs this year, there's one key strategy — avoid the S&P 500.

A growing number of high-earning Americans with massive incomes still don’t feel rich. Indeed, it’s not out of the ordinary to hear of a big earner who’s either living paycheck to paycheck or still feeling miles behind when it comes to retirement and financial freedom. Indeed, enter the HENRY (high earner, not rich yet) individual, who, for some reason or another, just doesn’t feel like they’re rich, even if they are considered such by outside observers. It’s one thing for someone earning $100,000 to feel the struggle in a city where the costs of living are sky-high (think Manhattan). However, it’s another thing for someone, like this Reddit user who posted on r/ChubbyFIRE a few months ago, to have a colossal income that’s just shy of half a million and still feel behind. Indeed, it all comes down to cash flows. If you’re spending more money than is coming in, you’ll build debt, rather than savings — it really is that simple. And for those who’ve stopped tracking expenses while giving in to “lifestyle inflation,” it can be hard to build a nest egg (real wealth) to give one a sense of financial freedom. Hiring a financial planner, getting on a budget, and going line by line on the monthly expenses is the only way to go. And while some hefty costs are unavoidable, especially for someone with two children (think college tuition and all the sort), I’d argue that if someone with a $460,000 income can’t meet such expenses, there’s a striking misalignment of priorities. In any case, let’s look into a few reasons why this arguably rich Reddit user doesn’t feel all too rich despite their enviable income and nest egg. Key Points Even high-income earners can feel financially insecure if their expenses are just as hefty. It all comes down to cutting expenses to save and invest more. Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here.(Sponsor) Their lifestyle is way too opulent Over the past year, our Reddit user reports having spent just shy of $200,000 on various items, including travel experiences. That’s excessive, even for someone making $460,000 a year. If you’ve achieved millionaire status but spend like one, you’ll find that financial freedom is fleeting. Sure, upgrading one’s lifestyle (the Reddit user is spending six figures annually) over saving and investing for the future seems like a sustainable move, especially if one’s high income only stands to get higher over time. That said, recessions, economic chaos, and layoffs can happen. And they could be catastrophic for a high-income earner who’s gotten too used to living a life of luxury, with the fancy vehicles, huge houses, and appetite for designer labels. In any case, even high-income earners should aim to have a modest lifestyle that entails sustainable monthly expenses so they won’t be living like it’s a feast or famine based on what happens with their employment. Indeed, with the threat of a tariff-fuelled recession and AI-induced automation potentially looming around the corner, it’s never been a better time to save up for a rainy-day fund, one that’s probably well larger than anyone would ever need. In any case, I’d argue that investing tens of thousands of dollars per year that would have otherwise gone to vacations, restaurants, and shopping is a wise move to get one on the right track towards feeling more financially secure in light of a more uncertain future. The portfolio is very well-diversified. But the contributions should be higher. Our Reddit user may be a big spender, but I’ll give them credit for having a very well-constructed portfolio. They’re 10% in bonds, 67% in the Vanguard Total Stock Market Index Fund (NYSEARCA:VTI), and 23% in the international Vanguard Total International Stock Index Fund ETF (NYSEARCA:VXUS). The portfolio is simple, it’s stock-heavy, and it’s very light on the fees (Vanguard has some of the lowest expense ratios out there). And while the portfolio may be more aggressive, I do think that someone in their 40s can tolerate such a level of risk, especially with such a high income. If the Reddit user pulled back on their spending, they could afford to put tens of thousands more into the portfolio. After doing so, I’d bet they’d feel a heck of a lot more financially secure. The post Two kids, a near-paid-off home, and $460k income – why does financial freedom still feel so far away? appeared first on 24/7 Wall St..

Some people invest for many years, only to look at their portfolios and wonder if they made a mistake. This scenario came up in a recent Bogleheads Reddit post. A Redditor is having some regrets about only buying the Vanguard S&P 500 ETF (NYSEARCA:VOO) and is wondering if they should have also diversified into the Vanguard Total Stock Market Index Fund (NYSEARCA:VTI). The Redditor has significant capital gains on his VOO position, so he can’t sell now. Hey wishes he bought VTI instead to get exposure to international markets, but it’s not as bad as it sounds. That’s how most commenters interpreted the most, but I will share my thoughts as well. You can learn a lot about investing from these types of Reddit posts. Key Points One Redditor feels like they messed up by buying VOO instead of VTI. These funds are very similar, and many commenters said that the Redditor did not mess up. Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here here.(Sponsor) Hold VOO and Buy VXUS for International Exposure One commenter suggested that the Redditor hold their VOO position and buy some Vanguard Total International Stock Index Fund ETF (NASDAQ:VXUS) shares for international exposure. VTI gives investors exposure to the entire stock market, while VXUS is focused on non-U.S. companies. This route can speed up the Redditor’s desired diversification efforts without having to sell VOO shares. VXUS has a 0.05% expense ratio and has delivered an annualized 12.5% return over the past five years. VOO has delivered a higher 20.3% annualized return during the same timeframe. The Redditor Is Already Diversified It doesn’t seem like the Redditor should panic too much about having bought VOO instead of VTI. Many commenters said that the Redditor didn’t mess up. VOO and VTI have produced similar returns over the years, with VOO slightly outperforming VTI. VOO has an annualized 12.8% return over the past decade, while VTI has an annualized 12.2% return during the same stretch. Although VTI gives investors exposure to the global stock market, most of its investments are still allocated toward U.S. companies. These funds have the identical top 10 holdings, but some of them in slightly different orders. Furthermore, VOO allocates 35% of its assets into the top 10 holdings, while VTI pours 30% of its capital into the top 10 assets. The difference between VOO and VTI are so small when it comes to portfolio diversification. More Diversification Isn’t Always Better VOO gives investors exposure to 500 companies, while VTI holds more than 3,600 stocks. They are highly diversified, but that’s not necessarily a good thing. It’s possible to over diversify and miss out on the most promising opportunities in the stock market. For instance, the S&P 100 has outperformed the S&P 500 over the long run. The S&P 100 only holds the top 100 companies, while the S&P 500 holds the top 500 companies. Meanwhile, the S&P 50 has outperformed both of them. Finally, the Roundhill Magnificent Seven ETF (NASDAQ:MAGS) has sailed past all of those benchmarks over the past year. This ETF only holds the Magnificent Seven stocks. While this isn’t an endorsement to put all of your capital into seven stocks, it shows that diversification for the sake of diversification doesn’t always result in the best returns. The Redditor has done well with their VOO holdings and should be happy with their progress. The Redditor mentioned having a big, unrealized capital gain, and that’s all investors want at the end of the day. The post I think I made a mistake investing in VOO – should I switch to VTI or diversify even further? appeared first on 24/7 Wall St..

There are a myriad of ETF options for investors to choose from, but these three look like solid contenders to be core portfolio positions in April.