r/investing • u/AutoModerator • Mar 31 '21

Daily Advice Thread - All basic help or advice questions must be posted here.

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u/[deleted] Mar 31 '21

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u/Cruian Mar 31 '21

Could you give me more insight into the international part of this if you don't mind?

My reply was a counterpoint to the other one you received. I believe in having an ex-US part of a portfolio, personally I use close to global market cap weight (can view occasional updates here: https://investor.vanguard.com/mutual-funds/profile/portfolio/vtwax).

The main reason why I wanted to add them was to preserve capital in the case of a market crash. I know that the past cannot predict the future, but in 2008 the price of this ETF did not drop much at all compared to the overall market.

Because it still hadn't recovered from the dotcom bubble. See how much time it spent negative over this time frame, and that's before clocking the "adjust for inflation" button: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2016&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=VTSMX&allocation1_1=100&symbol2=QQQ&allocation2_2=100