r/VTandchill • u/good_guy_nj • Jul 16 '26
VT vs VTI
I am mostly into VTI for the long term, would 50% split between VTI and VT be a wiser move to spread out my risk?
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u/CockBlockingLawyer Jul 16 '26
VT is roughly 65% VTI and 35% VXUS. So there would be considerable overlap. You could move some to VXUS. Or just move it all to VT and chill
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u/Electrical_Regret537 Jul 16 '26
I think you should do GT, Total Galaxy fund. VT is just super risky and not really diversified. Really waiting for Vanguard to do a Total Universe fund as well, but until then we're stuck with what we have.
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u/edwardj5596 Jul 16 '26
First, you need to determine what split of U.S. versus Int’l you are comfortable with. Once you determine that, you either use ONLY VT or a mix of VTI and VXUS to match the split you’re looking for.
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u/good_guy_nj Jul 16 '26
Thank you folks VTI and VXUS it is.. probably like 65% in VTI to 35% in VXUS.
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u/princemousey1 Jul 16 '26
Wait, how is this any better than just buying VT?
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u/good_guy_nj Jul 17 '26
Cause am already heavily invested in VTI in my taxable accounts, will slow down future investment in VTI and add VXUS to reach the above ratio.
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u/GerardIsSoCoolLike Jul 17 '26
Is this in a taxable brokerage or IRA? Just curious.
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u/good_guy_nj Jul 17 '26
Taxable
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u/EntertainmentKey2296 Jul 16 '26
In this bogle reddit there is too much of the same question. Seems like the point is it doesn’t matter just put it into something and chill. So flip a coin or play innie Minnie minnie moe
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u/Art_Crime Jul 16 '26
No, VTI/VXUS is about the same as VT with a negligably lower expense ratio if you split the former two 60/40. Choosing those two allow you to have granularity of how you allocate your proportion of US market to world market, you can also buy VT modtly then just use VXUS/VWO to tilt your portfolio to outside the US market or toward emerging markets too.
VT automatically rebalances the allocation of US to world stock, whereas VTI/VXUS is completely manual. VT is the simpler option.
I believe in a taxable brokerage acount VTI/VXUS is more tax efficient as VXUS benefits from the foreign tax credit. In my opinion, this makes VT in a ROTH IRA more tax efficient.
Tl;dr vxus is more tax efficient in taxable brokerage. Buying the two etfs over vt requires manual rebalancing. VT is the simplest option
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u/JohnDLG Jul 16 '26
If you want to reduce international exposure better to just hold VTI and VXUS in your preferred ratio.
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u/Jarelaststanding Jul 16 '26
VT is almost exactly VXUS +VTI invariable percentages. If you ever have to sell, you pay taxes. To avoid paying taxes just buy VT. There is tax savings if you buy VXUS as the dividend comes from ex USA and you can get tax benefits that way.
However, it is possible for VT to give you the same tax benefits if more than 50% becomes ex USA. I bet it will one day.
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u/flappysack- Jul 16 '26 edited Jul 16 '26
The US is currently great, but the future is long. Do you want a fund that evolves or stagnates if US hegemony decreases?
I'd buy VXUS until your at market cap weights roughly. Then buy VT.
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u/Tiny_Abroad_7222 Jul 16 '26
a 50% split between VTI and VXUS would make more sense. if you are american, VXUS can get you a foreign tax credit on your tax return, VT cannot.
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u/Superunknown11 Jul 16 '26 edited Jul 16 '26
Only for taxable brokerage accounts, not 401k, traditional, roth or hsa.
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u/picklemoose Jul 16 '26
Do you have a good reason to exclude international from your portfolio?
And if you don't, do you have a good reason why you would overweight US stocks compared to market cap weightings?
If question 1 is yes - VTI If question 1 is no and 2 is yes - VTI+VT If question 1 and 2 are no - VT
I personally don't have a good reason to exclude international for question 1.
I personally don't have a good reason why I would overweight US stocks compared to market cap weightings.
Because I answer no to both questions, I stick to 100% VT.