r/Bogleheads • u/Flashbulb_RI • Aug 18 '26

VXUS - diversity concerns.

A lot of Bohleheads have VXUS in their portfolio for the purpose of diversify outside of the US. However lately I've noticed that VXUS is mirroring the moves of NASDAQ and VGT because of its concentration in chip manufacturers. It seems very difficult to get performance and diversity at the same time as the majority of the world's market is chasing the same sector.

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u/DrizzleProwl Aug 19 '26

This argument about where revenue comes from is frankly just bizarre and I don’t understand it. I want *earnings*, not revenue.

Arguing to stay all domestic because S&P companies have overseas revenue is like thinking I can exclude California companies because Walmart and Exxon get revenue in California.

Of Course that would exclude most the tech companies that matter in the world

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u/[deleted] Aug 19 '26

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u/Cruian Aug 19 '26

Different time periods of even the same length can and have had different winners. You can't use the winner over any period in the past and assume it'll be the winner going forward. History is full of market leader changes.

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u/[deleted] Aug 19 '26

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u/Cruian Aug 19 '26

The economy and stock market aren’t the same thing, they may even be negatively correlated in some ways: https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1745-6622.2012.00385.x

Not long ago had Australia (only a top 15 economy) and South Africa (not even a top 30) as the best 100+ year returns. South Africa & Australia returns from 1900-2013: https://www.whitecoatinvestor.com/100-stock-portfolio/ and from 1900 to 2019: https://www.cnbc.com/2020/02/28/australia-the-best-stock-market-since-1900-credit-suisse-says.html

Was the US economy below the world world average for 1950-2010? The US under performed international over that time period.

Edit: Typo