Thank you for taking the time to watch the videos every Sunday. The great thing is that there is a lot to talk about in investing. I should be here for years to come.
Thanks for my Sunday class once again. Continually fine tuning my portfolio with your info. I also went back to watch that Bond video you linked just to remind me. Great presentation. And today was my subscription update. Totally worth the cost of admission!!!
Thank you for the support! I appreciate you watching every week. To be clear, a lot of people hold bonds and international ETFs. And much like me buying SCHD now, everybody will say they are clueless. Humans like to buy high and sell low (load up on VGT and QQQM because they have been the hot things, and sell international and SCHD because they have been bad lately). Our emotions really hurt the portfolio. The key is to stick to our system in all markets. I don't like bonds long-term for my strategy. I also have to say 'I don't like bonds' when they are up 9% and the market is down 30%. A lot of people forget 'that part' (: It's why I try to zoom out data as far as possible to show that everything has its time. I know I'll miss out on great runs for the assets that I don't have, and I'm okay with that.
I own international etf just because I like the fact that I am able to own companies like Samsung, TSM, ASML or even Nestle for example, not necessarily just for total returns.
Thanks for watching and commenting. That makes perfect sense to me. I love that there are millions of ways to invest that will work just fine. The trick is sticking to our systems in good and (especially) in bad times. I always use this as my extreme example: Let's say investor A holds 100% VGT and nothing else. She believes in technology both historically and more importantly moving forward. She has dominated all of our portfolios in the past decade. She will *likely* dominate the results in the next 10 to 20 years. I think that is a reasonable prediction given our world's state and techs role in it. BUT, *if* she bails on her system during the 1 or 2 *huge* crashes along the way, which are inevitable, she will likely lose, including all the historical dominance to the person in 100% VOO or even 100% VIG + SCHD + DGRO type things. It is easy to get rich, but hard to stay rich. That is why people diversify their portfolios. But... I think we can get into 'default-mode' where we hold everything without honestly assessing the complete package (in good or bad markets) long-term.
I made the mistake of allowing a Robo Advisor to manage my account for 7 years and they used International in the mix. I compared it to the S&P500 for those 7 years, and it lagged over $500K. If I had invested in VOO, I’d have $500K more right now. So I’m in M1 now with all US ETF’s.
I think M1 is great for long-term investing. I tried the Wealthfront and Betterment robo-portfolios (low dollars, testing logic and results over time vs my mix at the time) and they had a very traditional, balanced mix. Much like bonds, there is 99% chance that international stocks will outperform US stocks over stretches of times (multiple years). It has happened in the past and it will happen again. But the US market has been fundamentally better for the long-term as of now. Things could change, but I'm not here to predict the future.
@@JeffTeeples I used both of those platforms. I had well over a million in Betterment and they disappointed me. I wasted 7 years with them. M1 has already increased over $100K in a few months.
Video idea i would love to see, breakdown of QQQI for retirees as it compares to JEPQ/SCHD etc. specifically mentioning tax advantages/disadvantages etc.
Hey Oldrin. Thanks for the idea. I watch QQQI. It is new so I'm not quite ready to drop a video yet. I also am not a fan of the 0.68% expense ratio. BUT, I will remain open minded and keep an eye on it (:
@@JeffTeeples thank you for the reply. I know right like double the expense ratio of JEPQ. I was interested in their tax strategy and wanted someone much smarter than myself(you lol) to take a look at it, something about 60/40, sounded intriguing.
Hey Jeff - just double-checked - and this is a few days after your video, my FZILX is up 11.5% so far this year, a pleasant surprise. The market is cyclical. It looks like value, mid to small-caps and International may be back in favor, or at least not out of favor, as of mid-2024. Thanks!
Hey Kent. Thanks for the update. I think (and hope) that small to mid-caps & value will have a nice long run starting soon. It's one of the reasons I'm excited to be an SCHD holder when others are focused strictly on growth. I think a balanced approach is a great way to tackle investing.
Great video Jeff. I agree. I had thought about VGI or IDVO but studied their history which reflected poor compared to VOO or USA holdings. They do pay a higher dividend but that’s it when you compare Total Return. No comparison to other USA dividend ETFs. Thanks again and I look forward to your next informative educational video next week. Until then please be well.
Hey Lance. Thanks for watching and commenting as always. VOO is difficult to beat over long stretches of time. It has 100+ year run of beating 98% of specific tickers over 20 year stretches. It is easy to think 'I'll have this here and that there' in case VOO falls. A better solution would be to DCA more into VOO when it falls (: I try to roughly mirror the 'mix' of VOO when I build my modern 3-fund portfolio. I think QQQM + VGT is better than the 'growth' of VOO, and SCHD is high quality 'value' compared to the value side of VOO. I like to keep them in even proportions (value & growth) to keep my overall mix VOO-like. I have outperformed VOO for 10 years in a row, but, I've done it buy mirroring its components instead of rolling with more of the hot item (VGT lately). My goal is to beat the market every year. If I beat it, it shouldn't be by much. If I fall short, it shouldn't be by much. Otherwise I've screwed something up.
Thanks, Jeff. I also have no International funds in my portfolio. But I do own about 10% of US Small Cap Value based on its long-term winning history of all fund classes.
Hey Tommy. It's like you're reading my mind. I am going to make a video about small cap vs large cap soon (to show small caps long-term win). Thanks for watching and for your support of the channel!
Hi, Does stock price, whether ETF or individual stock, matter when choosing what to invest in? Is it better to buy more shares with lower price stock (say below $50/share) vs a stock that is $200+ per share?
Hey Barb. Thank you for watching and for the question. Stock or ETF price doesn't matter. For example, SPLG and VOO both follow the S&P 500. They are identical investments that will have the same return over time. VOO is $500 per share, while SPLG is $64. You will get the same result per dollar that you put in (with fractional shares).
It's worth considering that there's essentially been a macro bull run (specially in the US) since the early 80's about to dwindle lately. The fact that the US has massive amounts of debt relative to other countries does not bode well for the next macro cycle. Other countries are doing very well because of the international availability of technology which as allowed them to catch up sooner.
Thanks for watching and for leaving a comment. I think you bring up great points. I consider these important aspects of my decision making process. There will be a time that we will see massive, long-term changes. No doubt in my mind. I watch VT to see how the world (including US) is doing. It's nice because it helps me keep an eye on 'VTI' and 'VXUS' at the same time with one simple ticker. I often compare it to VOO to see how things are going. VOO is what I compare my personal mix to. I have outperformed VOO 10 consecutive years, yet I still think there is a good change I will roll with VOO and VT some day. We need to stay open-minded. Nothing is ever as good, or bad, as it seems.
Living in Asia the market hasn't been kind to us over the last five years, but for dividend investors it's still not bad as the average dividend for the blue chip/red chip companies is around 5%. The dividends are also tax free in most Asian jurisdictions. But agree if you're in the US there's no need to invest internationally. It's not the 1970s anymore, US companies have significant exposure to international markets which lessons the need to diversify.
Hey Bryan. Thank you for watching and for dropping a comment. Tax free dividends, I like the sound of that! (: Yeah, I feel comfortable with the international business that is done from the US. I will say that I plan to dive into the international market a little when VT starts to turn things around. VT is my favorite ETF to watch to make sure my portfolio is performing well. I'm a VOO over VTI guy, and I don't hold VXUS at the moment. With VT 'basically' being VTI + VXUS in one fund, it is a nice reasonability check for me to confirm I'm not crazy (:
Hey Michael. Thanks for watching and for leaving a comment. I've considered using VOO + VT to make an 'index fund' I'm happy with. I like that VT will automatically hold the world in proportion much like the logic of VTI or VOO for those indexes. That way if international is rocking VT will automatically have more weight in it as it grows. I like the S&P 500 better than VTI. But I figure a 50/50 mix gets me 'roughly' 50% S&P 500, 30% US total, and 20% ex-US. I don't hold VT yet, but I think that is how I will get direct exposure long-term. But VXUS is definitely my 'tracker' to make the decision of when to jump in.
Yo Jeff. Whadup. Great video. Cheers 🍻 Could you please create a video related to the best Russell 2000 index fund to invest in based on your research analysis and spreadsheet comparison? PLEASE! I’m seriously interested in investing in the small caps throughout the rest of the year and Vanguard’s VTWO index fund is as at the top of my list.
Hey Scott. Thanks for watching and for the idea! I think I'll be making a small cap and small cap value video in the near future. I'll show the asset class comparison (large vs small) and try to throw in some specific tickers.
Thanks for watching and for commenting. I'm with you. I will continue to watch international stocks and ETFs moving forward. I would be floored if I never jump in. But I'm comfortable where I'm at right now.
Great video Jeff as always! Thank you so much! I have a question about IBIT crypto stock. I remember you mentioned that you would start buying this. Would you tell me more about this stock? Is this like a crypto ETF or mutual fund? Just want to know your thoughts and if it's a good one to invest long term? or short term. Thank you so much!
Hey Jane. IBIT is a spot Bitcoin ETF that mirrors the price of Bitcoin. Owning it is basically the same thing as owning Bitcoin (BTC) outright. From a price perspective, that is. My thoughts about Bitcoin are... Mixed. I don't know if I believe it in long-term (20+ years type looooong-term), but, I do think there are profits to be had in the meantime. I plan to keep my portfolio between 2-3% BTC (via IBIT, I don't hold actual bitcoin anymore, huge updates coming in my next portfolio update). When IBIT becomes over 3% of my portfolio, I'll sell some to take profits and put it into my core portfolio mix. If it gets under 2%, I'll buy more to get it back above 2%.
@@JeffTeeples Thank you so much Jeff for the explanations! Really appreciate that! Thank you for sharing with me your thoughts on IBIT. I learned so much from you as always!
I agree as international has been my lowest performer over the past 10 years. International was only about 3.5% of my portfolio until recently boosting to 7%. I hold FSPSX in a 401k, VXUS in my primary IRA and recently added Toyota near a 52 week low. This will likely be it for the next 5 years until I reevaluate. Since I 'm only actively adding to two of the funds that percentage will decrease over time if they continue to underperform.
Hey Nick. I think boosting your international exposure is a smart move right now. It feels opposite, but as you know (this is more for other commenters), it is good to buy when things are beat up and making our portfolio look bad. You are very likely buying low, which will pay off in the long-term. Stay the course and profit (:
@@JeffTeeples That's what I'm hoping for. It's not going to make or break my portfolio and I'm comfortable with my international holdings for the long term.
Good evening Jeff, as usual it’s a pleasure watching your videos. My employer provides a 401k with fidelity and there are not too many options to choose from target funds and bonds which I do not want to. They have 2 funds actually I like -Roche us large cap equity fund. ER=0.33 Black rock us large cap equity index fund. ER= 0.01 Please let me know what’s your thoughts and have a good night.
Thank you for watching the video and for the question. I would need to know the tickers to provide an educated opinion on the investment options. If the 0.01% ER fund is an S&P 500 tracker then I would go with that (I have rolled with the S&P 500 index funds historically in my 401k plans).
@@JeffTeeples Good mroning Jeff, no tickers #. - Roche US Large Cap Equity Fund (ER:0.33%) Objective: Seeks favorable long‐term capital growth relative to the Large Cap U.S. Stock Market, represented by the Russell1000 Index. The Fund invests primarily in large capitalization stocks within the U.S. Average Annual Returns AS OF 06/30/2024: 1 Yr+25.65% 3 Yrs+9.65% 5 Yrs+16.42% 10 Yrs+13.16% - BlackRock U.S. Large Cap Equity Index Fund (ER:0.01%) The Russell 1000® Index is an unmanaged market capitalization-weighted index measuring the performance of the 1,000 largest companies in the Russell 3000® Index and is an appropriate index for broad-based large-cap funds. Average Annual Returns AS OF 06/30/20241 Yr+23.93% 3 Yrs+8.77% 5 Yrs+14.63% 10 Yrs+12.54% Thank you very much for your help.
The Russell 1000 index is a solid group of mid and large cap US stocks. You can track the returns with the ETF IWB. It has been close to the S&P 500. Here are the current splits from Seeking Alpha: Total returns: YTD: VOO 17.31% IWB 16.50% 1Y: VOO 23.76% IWB 23.20% 3Y: VOO 31.82% IWB 27.43% 5Y: VOO 100.32% IWB 96.01% 10Y: VOO 247.42% IWB 231.86% I think a 0.01% expense ratio version of that is a solid place to put your 401k dollars. Assuming they don't have a VOO or VTI type fund. It is WAY better than 1 of the 3 companies I worked at. The lowest ER was 0.70%.
I invest in international stocks, because A) The dividends can be higher (they do more dividends than stock buy backs, compared to US companies), and B) I’m concerned about the growing US debt problem, budget deficit, and eventual de-dollarization of the globe. The higher dividends don’t get taxed as friendly as US company qualified dividends, but still better than REITS or BDC,s. I invest in SCHD and DIVO’s international counterparts, SCHY and IDVO.
Hey Gary. Thanks for watching and commenting. I love your logic and reasoning for your investment strategy. I think you bring up legitimate concerns and the US and you have a system the reflect your views. I bet you will have solid long-term results if you stay the course with your system. That is the beauty about this, we are never *wrong* for believing in X, Y, Z. Well, some people are a bit out there, haha, but you know what I mean.
Thanks for watching and for leaving a comment. I think this is a solid argument. I mostly agree with it, however, I do feel that having everything in the US market does come with some extra risk. But it is nice for revenue diversity.
Thanks for the great video. Thoughts on small cap investing? What I've learned is small cap growth is the way to go over value, but haven't purchased any etfs. Not trying to be an ambulance chaser and investment funds only reach so far since still learning. Seems like S&P 500 is all I'd need. Have a great week....
Hey Anthony. Small cap has had some impressive results over a prolonged period of time. I am a large cap focused investor, but, not because it is *better*. I like the lower ceiling / high floor investments, and large cap is more of a steady eddy. Small has actually won the performance charts. I want to make a video about small vs large cap, and then within small cap, value vs growth. This one should be coming in the next month'ish I think. I keep a list of ideas on a spreadsheet. Many of which that I get from this awesome community.
Hey Jeff! In your portfolio visualizer example, was that VXUS as the international fund being compared to (VTI, VOO)? The data on the tool did not specify the ticker symbol for the international fund.
Hey David. Thanks for watching and for the question. Also, thank you for being a channel member. I see that shiny 2 month badge! I used the asset allocation backtest feature instead of a specific portfolio backtest. This is nice because it can pull in way more data without relying on specific tickers having to exist the full period. The total US market and US large cap are more or less identical to VTI and VOO. I have run tests for fun and it is clearly what the 'asset class' is using from an index perspective. They will be within a few bucks after 15 to 20 years of investing. VXUS is 'close to' the 'ex-US stock market' asset class. It isn't as perfect as VOO and VTI, which is why I didn't add the label of VXUS there, but it is ballpark close in most of the backtests that I run to audit it. Close enough to where I think it is safe to use it as the entire int'l market (much like VTI for the US).
I have less than 8% of my stock allocation to international ETFs for diversification but not a big allocation. I wonder what the back dated returns would be if the U.S. returns excluded the magnificent 7 since they make up such a large percentage of the returns to these market cap ETFs. In the decumulation stage, I feel that diversification is important.
Hey Rick. Thanks for watching and dropping a comment. That is a nice way to go about it for diversification. I'm sure that 8% will help stabilize the portfolio during certain US down markets (much like bonds). The magnificent 7 is nothing new. The returns of the S&P 500 have been 'like that' for many decades. Of course, the number 7 and these specific companies are *new*, but history has always been like that. So I don't put weight in 7 carrying and 493 being roughly flat, personally. Same story, new characters.
You are right until your not... I'd venture an educated guess international stocks will out preform US stocks for years someday... (like they did from 2000-2010... They all ebb and flow.. you're market timing different assets which has worked for now.. it won't work when you try to jump in later or too late... but whatever works for ya... you'll do fine in just USA stocks too
I agree with most of what you said. I think the int'l will continue to put together winning streaks. I also agree that people attempting to jump in and out will never work (market timing, we are terrible at it). Where you missed the boat is the statement about being right. The back test was for zero market timing (it is kind of the point). Comparing the big picture of int'l vs US (zoomed out for as many runs as possible without moving). Not sure where you pulled market timing from here.
Definitely. It has gone on other runs over the 40 years of data that portfolio visualizer supports as well. But it doesn't have the solid foundation and staying power of the US market. I know 'a lot' goes into 'it' when talking about the entire international market. But for me, it is a VTI situation. I'm getting in on the entire index (VXUS or VT) or I'm not. Hand picking winners by country is not something I'm interested in for ex-US. I can barely do that for the market I know well (:
If one is in their early 40s and just started investing (have 401k from work). Should they just focus on growth etf since it will be too late for them to see real benefits with dividends?
Thanks for watching and for the question. I wouldn't say early 40's is 'too late' for anything related to investing. If you have at least 20 years left to put money into the market then I think growth is a nice way to lean. I would still have a balance of the two. I think value/dividends is good to have at any age in any market (with at least a portion of the portfolio).
Hey Vic. I understand that logic and it makes sense. But without target allocations it is hard to define what is high and what is low. I guess I should say how much to put into 'high' vs 'low'. Let's say you're comfortable with 20% international. When the US market is going way up (lately), you would buy up a bunch of international to 'get it back to 20% of your portfolio. But if you are just buying because things 'feel high / low', it can be easy to get out of whack. Again, I'm not saying you're doing this. I just think it is important to stick to your system long-term that is based on your risk tolerances and goals. Stay the course.
I can set my Sunday morning clock with your show…thanks for continuing to post.
Thank you for taking the time to watch the videos every Sunday. The great thing is that there is a lot to talk about in investing. I should be here for years to come.
Thanks for my Sunday class once again. Continually fine tuning my portfolio with your info. I also went back to watch that Bond video you linked just to remind me. Great presentation.
And today was my subscription update. Totally worth the cost of admission!!!
Thank you for the support! I appreciate you watching every week. To be clear, a lot of people hold bonds and international ETFs. And much like me buying SCHD now, everybody will say they are clueless. Humans like to buy high and sell low (load up on VGT and QQQM because they have been the hot things, and sell international and SCHD because they have been bad lately). Our emotions really hurt the portfolio.
The key is to stick to our system in all markets. I don't like bonds long-term for my strategy. I also have to say 'I don't like bonds' when they are up 9% and the market is down 30%. A lot of people forget 'that part' (:
It's why I try to zoom out data as far as possible to show that everything has its time. I know I'll miss out on great runs for the assets that I don't have, and I'm okay with that.
I own international etf just because I like the fact that I am able to own companies like Samsung, TSM, ASML or even Nestle for example, not necessarily just for total returns.
Thanks for watching and commenting. That makes perfect sense to me. I love that there are millions of ways to invest that will work just fine. The trick is sticking to our systems in good and (especially) in bad times.
I always use this as my extreme example:
Let's say investor A holds 100% VGT and nothing else. She believes in technology both historically and more importantly moving forward. She has dominated all of our portfolios in the past decade. She will *likely* dominate the results in the next 10 to 20 years. I think that is a reasonable prediction given our world's state and techs role in it.
BUT, *if* she bails on her system during the 1 or 2 *huge* crashes along the way, which are inevitable, she will likely lose, including all the historical dominance to the person in 100% VOO or even 100% VIG + SCHD + DGRO type things.
It is easy to get rich, but hard to stay rich. That is why people diversify their portfolios. But... I think we can get into 'default-mode' where we hold everything without honestly assessing the complete package (in good or bad markets) long-term.
I made the mistake of allowing a Robo Advisor to manage my account for 7 years and they used International in the mix. I compared it to the S&P500 for those 7 years, and it lagged over $500K. If I had invested in VOO, I’d have $500K more right now. So I’m in M1 now with all US ETF’s.
I think M1 is great for long-term investing. I tried the Wealthfront and Betterment robo-portfolios (low dollars, testing logic and results over time vs my mix at the time) and they had a very traditional, balanced mix.
Much like bonds, there is 99% chance that international stocks will outperform US stocks over stretches of times (multiple years). It has happened in the past and it will happen again. But the US market has been fundamentally better for the long-term as of now. Things could change, but I'm not here to predict the future.
Made same mistake, you are spot on.
Thanks Jeff for another great video.
@@JeffTeeples I used both of those platforms. I had well over a million in Betterment and they disappointed me. I wasted 7 years with them. M1 has already increased over $100K in a few months.
Video idea i would love to see, breakdown of QQQI for retirees as it compares to JEPQ/SCHD etc. specifically mentioning tax advantages/disadvantages etc.
Hey Oldrin. Thanks for the idea. I watch QQQI. It is new so I'm not quite ready to drop a video yet. I also am not a fan of the 0.68% expense ratio. BUT, I will remain open minded and keep an eye on it (:
@@JeffTeeples thank you for the reply. I know right like double the expense ratio of JEPQ. I was interested in their tax strategy and wanted someone much smarter than myself(you lol) to take a look at it, something about 60/40, sounded intriguing.
Haha, don't give me too much credit (: I'll keep an eye on it.
keep pumping out those financial informational videos Jeff!!!!
Will do Kevin. Thanks as always for watching and for leaving a comment. Love the encouragement. I'll be making more videos, at least for a while (:
Hey Jeff - just double-checked - and this is a few days after your video, my FZILX is up 11.5% so far this year, a pleasant surprise. The market is cyclical. It looks like value, mid to small-caps and International may be back in favor, or at least not out of favor, as of mid-2024. Thanks!
Hey Kent. Thanks for the update. I think (and hope) that small to mid-caps & value will have a nice long run starting soon. It's one of the reasons I'm excited to be an SCHD holder when others are focused strictly on growth. I think a balanced approach is a great way to tackle investing.
Great video Jeff. I agree. I had thought about VGI or IDVO but studied their history which reflected poor compared to VOO or USA holdings. They do pay a higher dividend but that’s it when you compare Total Return. No comparison to other USA dividend ETFs. Thanks again and I look forward to your next informative educational video next week. Until then please be well.
Hey Lance. Thanks for watching and commenting as always. VOO is difficult to beat over long stretches of time. It has 100+ year run of beating 98% of specific tickers over 20 year stretches. It is easy to think 'I'll have this here and that there' in case VOO falls. A better solution would be to DCA more into VOO when it falls (:
I try to roughly mirror the 'mix' of VOO when I build my modern 3-fund portfolio. I think QQQM + VGT is better than the 'growth' of VOO, and SCHD is high quality 'value' compared to the value side of VOO. I like to keep them in even proportions (value & growth) to keep my overall mix VOO-like.
I have outperformed VOO for 10 years in a row, but, I've done it buy mirroring its components instead of rolling with more of the hot item (VGT lately).
My goal is to beat the market every year. If I beat it, it shouldn't be by much. If I fall short, it shouldn't be by much. Otherwise I've screwed something up.
@@JeffTeeples you’ve done well Jedi. Looking forward to your balancing act / video. Always ready to listen and learn from a Jedi warrior.
Thanks, Jeff. I also have no International funds in my portfolio.
But I do own about 10% of US Small Cap Value based on its long-term winning history of all fund classes.
Hey Tommy. It's like you're reading my mind. I am going to make a video about small cap vs large cap soon (to show small caps long-term win). Thanks for watching and for your support of the channel!
Hi, Does stock price, whether ETF or individual stock, matter when choosing what to invest in? Is it better to buy more shares with lower price stock (say below $50/share) vs a stock that is $200+ per share?
Hey Barb. Thank you for watching and for the question. Stock or ETF price doesn't matter. For example, SPLG and VOO both follow the S&P 500. They are identical investments that will have the same return over time. VOO is $500 per share, while SPLG is $64. You will get the same result per dollar that you put in (with fractional shares).
It's worth considering that there's essentially been a macro bull run (specially in the US) since the early 80's about to dwindle lately. The fact that the US has massive amounts of debt relative to other countries does not bode well for the next macro cycle. Other countries are doing very well because of the international availability of technology which as allowed them to catch up sooner.
Thanks for watching and for leaving a comment. I think you bring up great points. I consider these important aspects of my decision making process. There will be a time that we will see massive, long-term changes. No doubt in my mind.
I watch VT to see how the world (including US) is doing. It's nice because it helps me keep an eye on 'VTI' and 'VXUS' at the same time with one simple ticker. I often compare it to VOO to see how things are going. VOO is what I compare my personal mix to. I have outperformed VOO 10 consecutive years, yet I still think there is a good change I will roll with VOO and VT some day.
We need to stay open-minded. Nothing is ever as good, or bad, as it seems.
Living in Asia the market hasn't been kind to us over the last five years, but for dividend investors it's still not bad as the average dividend for the blue chip/red chip companies is around 5%. The dividends are also tax free in most Asian jurisdictions.
But agree if you're in the US there's no need to invest internationally. It's not the 1970s anymore, US companies have significant exposure to international markets which lessons the need to diversify.
Hey Bryan. Thank you for watching and for dropping a comment. Tax free dividends, I like the sound of that! (:
Yeah, I feel comfortable with the international business that is done from the US. I will say that I plan to dive into the international market a little when VT starts to turn things around.
VT is my favorite ETF to watch to make sure my portfolio is performing well. I'm a VOO over VTI guy, and I don't hold VXUS at the moment. With VT 'basically' being VTI + VXUS in one fund, it is a nice reasonability check for me to confirm I'm not crazy (:
Great video Mr. Teeples!
Hey Oldrin. I appreciate your consistent support of the channel. As always, thanks for watching!
Thanks Jeff. For myself,‘I’m totally with you. For my 11YO, his portfolio has 25% VXUS.
Hey Michael. Thanks for watching and for leaving a comment. I've considered using VOO + VT to make an 'index fund' I'm happy with. I like that VT will automatically hold the world in proportion much like the logic of VTI or VOO for those indexes. That way if international is rocking VT will automatically have more weight in it as it grows.
I like the S&P 500 better than VTI. But I figure a 50/50 mix gets me 'roughly' 50% S&P 500, 30% US total, and 20% ex-US.
I don't hold VT yet, but I think that is how I will get direct exposure long-term. But VXUS is definitely my 'tracker' to make the decision of when to jump in.
Yo Jeff. Whadup. Great video. Cheers 🍻 Could you please create a video related to the best Russell 2000 index fund to invest in based on your research analysis and spreadsheet comparison? PLEASE! I’m seriously interested in investing in the small caps throughout the rest of the year and Vanguard’s VTWO index fund is as at the top of my list.
Hey Scott. Thanks for watching and for the idea! I think I'll be making a small cap and small cap value video in the near future. I'll show the asset class comparison (large vs small) and try to throw in some specific tickers.
Outstanding. Russell 2000 index funds seem to be the place to be right now due to potential falling interest rates in September. Cheers @@JeffTeeples
Yep I made the same decision. Kept trying to find a sensible allocation to Int'l stocks and sadly there really isn't one. At least right now.
Thanks for watching and for commenting. I'm with you. I will continue to watch international stocks and ETFs moving forward. I would be floored if I never jump in. But I'm comfortable where I'm at right now.
Great video Jeff as always! Thank you so much! I have a question about IBIT crypto stock. I remember you mentioned that you would start buying this. Would you tell me more about this stock? Is this like a crypto ETF or mutual fund? Just want to know your thoughts and if it's a good one to invest long term? or short term. Thank you so much!
Hey Jane. IBIT is a spot Bitcoin ETF that mirrors the price of Bitcoin. Owning it is basically the same thing as owning Bitcoin (BTC) outright. From a price perspective, that is.
My thoughts about Bitcoin are... Mixed. I don't know if I believe it in long-term (20+ years type looooong-term), but, I do think there are profits to be had in the meantime. I plan to keep my portfolio between 2-3% BTC (via IBIT, I don't hold actual bitcoin anymore, huge updates coming in my next portfolio update).
When IBIT becomes over 3% of my portfolio, I'll sell some to take profits and put it into my core portfolio mix. If it gets under 2%, I'll buy more to get it back above 2%.
@@JeffTeeples Thank you so much Jeff for the explanations! Really appreciate that! Thank you for sharing with me your thoughts on IBIT. I learned so much from you as always!
I agree as international has been my lowest performer over the past 10 years. International was only about 3.5% of my portfolio until recently boosting to 7%. I hold FSPSX in a 401k, VXUS in my primary IRA and recently added Toyota near a 52 week low. This will likely be it for the next 5 years until I reevaluate. Since I 'm only actively adding to two of the funds that percentage will decrease over time if they continue to underperform.
Hey Nick. I think boosting your international exposure is a smart move right now. It feels opposite, but as you know (this is more for other commenters), it is good to buy when things are beat up and making our portfolio look bad. You are very likely buying low, which will pay off in the long-term. Stay the course and profit (:
@@JeffTeeples That's what I'm hoping for. It's not going to make or break my portfolio and I'm comfortable with my international holdings for the long term.
Good evening Jeff, as usual it’s a pleasure watching your videos. My employer provides a 401k with fidelity and there are not too many options to choose from target funds and bonds which I do not want to. They have 2 funds actually I like
-Roche us large cap equity fund. ER=0.33
Black rock us large cap equity index fund. ER= 0.01
Please let me know what’s your thoughts and have a good night.
Thank you for watching the video and for the question. I would need to know the tickers to provide an educated opinion on the investment options. If the 0.01% ER fund is an S&P 500 tracker then I would go with that (I have rolled with the S&P 500 index funds historically in my 401k plans).
@@JeffTeeples Good mroning Jeff, no tickers #.
- Roche US Large Cap Equity Fund (ER:0.33%) Objective: Seeks favorable long‐term capital growth relative
to the Large Cap U.S. Stock Market, represented by the Russell1000 Index. The Fund invests primarily in large capitalization
stocks within the U.S.
Average Annual Returns
AS OF 06/30/2024: 1 Yr+25.65% 3 Yrs+9.65% 5 Yrs+16.42% 10 Yrs+13.16%
- BlackRock U.S. Large Cap Equity Index Fund (ER:0.01%) The Russell 1000® Index is an unmanaged market capitalization-weighted index measuring the performance of the 1,000 largest companies in the Russell 3000® Index and is an appropriate index for broad-based large-cap funds.
Average Annual Returns
AS OF 06/30/20241 Yr+23.93% 3 Yrs+8.77% 5 Yrs+14.63% 10 Yrs+12.54%
Thank you very much for your help.
The Russell 1000 index is a solid group of mid and large cap US stocks.
You can track the returns with the ETF IWB. It has been close to the S&P 500. Here are the current splits from Seeking Alpha:
Total returns:
YTD: VOO 17.31% IWB 16.50%
1Y: VOO 23.76% IWB 23.20%
3Y: VOO 31.82% IWB 27.43%
5Y: VOO 100.32% IWB 96.01%
10Y: VOO 247.42% IWB 231.86%
I think a 0.01% expense ratio version of that is a solid place to put your 401k dollars. Assuming they don't have a VOO or VTI type fund.
It is WAY better than 1 of the 3 companies I worked at. The lowest ER was 0.70%.
Thank you very much for the infos, yes they do not offer s&p500, the 2 I mentioned are the best, definitely I will go with black rock with a low ER.
I invest in international stocks, because A) The dividends can be higher (they do more dividends than stock buy backs, compared to US companies), and B) I’m concerned about the growing US debt problem, budget deficit, and eventual de-dollarization of the globe. The higher dividends don’t get taxed as friendly as US company qualified dividends, but still better than REITS or BDC,s. I invest in SCHD and DIVO’s international counterparts, SCHY and IDVO.
Hey Gary. Thanks for watching and commenting. I love your logic and reasoning for your investment strategy. I think you bring up legitimate concerns and the US and you have a system the reflect your views. I bet you will have solid long-term results if you stay the course with your system. That is the beauty about this, we are never *wrong* for believing in X, Y, Z. Well, some people are a bit out there, haha, but you know what I mean.
@@garythomas3150 I also hold a reasonably sized position in SCHY, because it follows a similar approach to SCHD (which I also own).
With globalization, US stocks ARE international stocks today
Thanks for watching and for leaving a comment. I think this is a solid argument. I mostly agree with it, however, I do feel that having everything in the US market does come with some extra risk. But it is nice for revenue diversity.
Thanks for the great video. Thoughts on small cap investing? What I've learned is small cap growth is the way to go over value, but haven't purchased any etfs. Not trying to be an ambulance chaser and investment funds only reach so far since still learning. Seems like S&P 500 is all I'd need. Have a great week....
Hey Anthony. Small cap has had some impressive results over a prolonged period of time. I am a large cap focused investor, but, not because it is *better*. I like the lower ceiling / high floor investments, and large cap is more of a steady eddy. Small has actually won the performance charts.
I want to make a video about small vs large cap, and then within small cap, value vs growth. This one should be coming in the next month'ish I think. I keep a list of ideas on a spreadsheet. Many of which that I get from this awesome community.
Hey Jeff! In your portfolio visualizer example, was that VXUS as the international fund being compared to (VTI, VOO)? The data on the tool did not specify the ticker symbol for the international fund.
Hey David. Thanks for watching and for the question. Also, thank you for being a channel member. I see that shiny 2 month badge!
I used the asset allocation backtest feature instead of a specific portfolio backtest. This is nice because it can pull in way more data without relying on specific tickers having to exist the full period.
The total US market and US large cap are more or less identical to VTI and VOO. I have run tests for fun and it is clearly what the 'asset class' is using from an index perspective. They will be within a few bucks after 15 to 20 years of investing.
VXUS is 'close to' the 'ex-US stock market' asset class. It isn't as perfect as VOO and VTI, which is why I didn't add the label of VXUS there, but it is ballpark close in most of the backtests that I run to audit it.
Close enough to where I think it is safe to use it as the entire int'l market (much like VTI for the US).
I have less than 8% of my stock allocation to international ETFs for diversification but not a big allocation. I wonder what the back dated returns would be if the U.S. returns excluded the magnificent 7 since they make up such a large percentage of the returns to these market cap ETFs. In the decumulation stage, I feel that diversification is important.
Hey Rick. Thanks for watching and dropping a comment. That is a nice way to go about it for diversification. I'm sure that 8% will help stabilize the portfolio during certain US down markets (much like bonds).
The magnificent 7 is nothing new. The returns of the S&P 500 have been 'like that' for many decades. Of course, the number 7 and these specific companies are *new*, but history has always been like that. So I don't put weight in 7 carrying and 493 being roughly flat, personally. Same story, new characters.
I own some ex europe and china, Meli,Tsm,toyota etc.
Hey Noz. I appreciate you watching the video & I hope your system for investing works well. If you stay the course it likely will do just fine.
You are right until your not... I'd venture an educated guess international stocks will out preform US stocks for years someday... (like they did from 2000-2010... They all ebb and flow.. you're market timing different assets which has worked for now.. it won't work when you try to jump in later or too late... but whatever works for ya... you'll do fine in just USA stocks too
I agree with most of what you said. I think the int'l will continue to put together winning streaks. I also agree that people attempting to jump in and out will never work (market timing, we are terrible at it).
Where you missed the boat is the statement about being right. The back test was for zero market timing (it is kind of the point). Comparing the big picture of int'l vs US (zoomed out for as many runs as possible without moving). Not sure where you pulled market timing from here.
@@JeffTeeples I was an A - student.. .maybe I should have listened better ;) Keep up the good content; thanks.
International did well at the outset of the test because of the rampant growth in Japan in the 80s. It turned out to be fake growth though.
Definitely. It has gone on other runs over the 40 years of data that portfolio visualizer supports as well. But it doesn't have the solid foundation and staying power of the US market. I know 'a lot' goes into 'it' when talking about the entire international market. But for me, it is a VTI situation. I'm getting in on the entire index (VXUS or VT) or I'm not. Hand picking winners by country is not something I'm interested in for ex-US. I can barely do that for the market I know well (:
USA! USA! USA!
USA! We may not be perfect (oh how far from perfect we are), but we have had a solid market for over a century!
If one is in their early 40s and just started investing (have 401k from work). Should they just focus on growth etf since it will be too late for them to see real benefits with dividends?
Thanks for watching and for the question. I wouldn't say early 40's is 'too late' for anything related to investing. If you have at least 20 years left to put money into the market then I think growth is a nice way to lean. I would still have a balance of the two. I think value/dividends is good to have at any age in any market (with at least a portion of the portfolio).
@@JeffTeeples you’re the man
US markets seem high and bargains in other parts of the world I’m loading up on
Hey Vic. I understand that logic and it makes sense. But without target allocations it is hard to define what is high and what is low. I guess I should say how much to put into 'high' vs 'low'.
Let's say you're comfortable with 20% international. When the US market is going way up (lately), you would buy up a bunch of international to 'get it back to 20% of your portfolio. But if you are just buying because things 'feel high / low', it can be easy to get out of whack.
Again, I'm not saying you're doing this. I just think it is important to stick to your system long-term that is based on your risk tolerances and goals. Stay the course.
Vgt vgt😊
Haha, you know I'm all about the VGT (: