US Stocks Vs International stocks

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lexluthor22
Posts: 14
Joined: Fri Jun 17, 2022 10:27 am

US Stocks Vs International stocks

Post by lexluthor22 »

I just got a copy of "The BogleHead guide to three fund portfolio" and I found an interesting advice on the very first pages. Author is recommending a long term investor not allocate any of his/her assets to non US stocks and if they disagree they should limit their internation stocks holding to 20% of their stock portion.
Is not clear why this advice but I guess this is for US Investors altough am not clear if this should be valid also for non US investors.

To this aim am questioning my self if I should allocate my stock portion as more than 50% in an EU based index tracking SP500 and the the remaining into an international stock index fund that excludes US stocks. Also, does such an index exists ?

Thoughts ?

Please note I've a fiscal residence in Ireland.
webkonsola
Posts: 10
Joined: Fri Jun 26, 2020 9:13 am

Re: US Stocks Vs International stocks

Post by webkonsola »

That's a US centric approach

There is some context here that can provide additional arguments :

https://www.bankeronwheels.com/why-you- ... ification/
tubaleiter
Posts: 247
Joined: Tue Mar 09, 2021 11:58 am

Re: US Stocks Vs International stocks

Post by tubaleiter »

This is an eternal debate :)

Fortunately, we just had it on this board: viewtopic.php?t=382828

If you want to buy market weights of US and ex-US (currently about 60/40), just buy an all-world index fund and don't worry about it, something like VWRL. If you want to split it up, you can, but there isn't an ex-US product that's appropriate for Irish investors (in the US, there's VXUS, but you can't/shouldn't use US funds as an Irish resident). You can build it up from developed Europe, Japan, developed Asia ex-Japan, and Emerging Markets funds (and a Canada one if you want to be perfectionist), but that adds some complexity.

Personal opinion - buy the whole market. If your personal and tax situation allows, just buy an all-world index fund and don't worry about it.
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