2 ms·
Do you just buy stock X because you think it will do well, or do you buy a broad ETF because you believe in passive investing and diversification? If the latte
by DennisP 6y ago
Do you just buy stock X because you think it will do well, or do you buy a broad ETF because you believe in passive investing and diversification?
If the latter, well, the same applies to countries and asset classes. You can take your best guess on who the winners will be, or you can just buy the market. It doesn't mean you think "the globe will outperform the US," any more than buying VTSAX means you think VTSAX will outperform Apple.
- kapp_in_life 6y agoAnd it also bears mentioning that if you're buying a market cap weighted fund then you aren't really missing out too much on US equity dominance, since for example VTWAX holds ~60% US stocks.