International Diversification

[@DuyNguyen-uz9ti]

Hello Ben. Just wanted to make sure. Are you on Telegram? Or is it someone impersonating you?

[@BenFelixCSI]

I am not on Telegram. Please report this person if that's a thing on Telegram. Otherwise block them.

[@DuyNguyen-uz9ti]

@@BenFelixCSI Great. Reported. Glad I asked.

[@azhp42069]

Ben's chuckles are so subdued and yet convey such a strong sense of "what I just said was irrational behavior" and I love it

[@domkaz1669]

I just thought the same thing haha

[@mohammadrezasabouri6875]

I actually find it arrogant and unnecessary.

[@sandralee5502]

Rational reminder podcast?!?!

[@nelfmo910]

He's doing that Plain Bagel chuckle

[@PMA65537]

@@sandralee5502 Wherever you get your podcasts.

[@NelleHummell]

People point out that the US makes up more than 50% of the global stock market, and many US companies have a lot of international exposure already. Plus, they argue that global markets have become more correlated over time, which means international diversification doesn’t offer the same benefits it used to

[@cherylhills3227]

Sure, the US market is massive and diversified across industries, but it’s still just one market. There’s a whole world out there with different economic cycles, interest rates, and growth opportunities. By focusing only on the US, you could be missing out on growth in regions like Asia or emerging markets

[@cherylhills3227]

The US has been the dominant market for a long time, but no market outperforms forever. There’s no guarantee that the next 100 years will look like the last 100. And even if markets have become more correlated, international diversification can still reduce risk by giving you exposure to different economic environments and policy regimes

[@sebastiaanthijn7982]

just because US stocks have done well historically doesn’t mean they’ll always outperform. There are other countries with growing economies, and their markets could perform better in the future. Plus, the US faces its own risks political instability, rising debt, and so on. Being too concentrated in one country’s market, even one as big as the US, could backfire.

[@sebastiaanthijn7982]

And diversification isn’t just about chasing returns; it’s also about managing risk. International stocks might move in the same direction as US stocks more often now, but they still offer some protection against localized risks. Look at what happened with Brexit in the UK or the eurozone debt crisis. Investors who were globally diversified could handle those events better than those concentrated in Europe or the UK

[@LoydJohnson-kp3jv]

different regions and countries have their own unique industries and resources. For example, you might find opportunities in technology in South Korea, renewable energy in Europe, or natural resources in Canada and Australia. A globally diversified portfolio can tap into those regional strengths in ways a US only portfolio can’t

[@musicloveranthony]

Best investment channel on KZbin. I get so excited whenever I see a new video posted!!

[@mccallanger6734]

Check out the podcast he co-hosts, Rational Reminder. Awesome episodes and very indepth content coverage there

[@StevenDonald2]

Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid economy crisis, and even pull it off easily in favorable conditions. Unequivocally, the collapse is getting somebody somewhere rich.

[@BP-ke5qs]

Scam ☝️

[@djpuplex]

Ben Felix gets a haircut after briefly entertaining the world of hair.

[@Kay-tf9cj]

Just the comment I was looking for 😂

[@chris-3]

This is a strong signal that the Fed will cut rates.

[@zachwhitfield7083]

It was weird for a bit. Like the book of fire in Avatar

[@AriAllynFeuer]

Ben, are you a bond investor in 2022? Because you just got a haircut.

[@andrewmihalik7575]

He looks better bald.

[@MsDaniel141414]

Best investing content on YT. Thanks champ

[@falsificationism]

Wow! An actually thoughtful, careful, and responsible economic thesis video! Well done!

[@bjohns347347]

Great video. Everyone saving for retirement needs to see this. I love the explanation about stock prices and expected returns; “it’s a noisy relationship, it’s not gravity”

[@michaelsmith4904]

Maybe it is like gravity, but it is on a feather in the wind?

[@spb81]

i always think back to the Japanese pricing bubble as the historical lesson on the importance of diversifying across all countries.

[@om7303]

The difference is US pricing is protected and insured by the US Military. That ludicrous military spending every year is insurance against economic collapse.

[@isaacongzy]

Was Japan invaded

[@tritonlandscaping1505]

@@isaacongzy In 1945. The US never left.

[@JeffreyJefferson]

No. The asset pricing bubble was in the late 80s.

[@rudyardganuelas6254]

@@om7303 i’d argue that it only insures against dollar devaluation.

[@macdougallrob]

this is literally everything I wanted to know about this topic. Amazing. Thanks so much.

[@jvm-tv]

The best and only investment KZbin channel you need.

[@joekuhnlovesretirement]

Best analysis on KZbin. My "go to" for facts over emotion.

[@howardfriedman7077]

Yep.

[@investeer]

I had long thought that the advice of "just buy the s&p 500" was outdated, thanks for providing evidence in defense of this

[@larryjones9773]

So Warren Buffett is wrong?

[@chubbs6684]

@@larryjones9773 yeah. Just buying the sp500 is good advice if you were buying individual stocks, but there are much more optimal portfolios than just sp500

[@UserrHD]

​@@chubbs6684Yeah, like total market. International really isn't necessary.

[@thegreat9481]

@@chubbs6684explain what’s better than the s&p…. Lmao

[@Richard_Stroker]

"Diversification is the only free lunch in investing." - Harry Markowitz, Nobel Prize winner in Economics

[@soshityo]

“S&P 500” - Warren Buffett on index funds, greatest investor of all time.

[@Fabian9006]

​@@soshityowhy do you think that WB is the greatest investor of all time?

[@fredatlas4396]

​@@soshityoSince 2009 the S&P 500 index has actually beaten Berkshire Hathaway by some margin. Check it on the free US backtester, portfolio visualiser. But i guess this doesn't necessarily mean the S&P 500 index will continue to outperform in the future. As John Bogle said he was given some good advice, nobody knows nothing. Nobody really knows what will happen in the future, and this really applies to stock markets, investments because they are very unpredictable, volatile etc

[@739jep]

@@soshityo ‘S&P 500,’ Warren Buffet on index funds, being wrong yet again

[@louisking11]

​​@@739jepit did not age well, right? 😅 S&P ath

[@jugzster]

As someone who’s still buying all-world funds, I’m still waiting for the day international beats US. As the saying goes, when US sneezes, the rest of the world catches a cold. Excellent video as always!

[@jzen1455]

That's a solid bet. Vanguard's Total International Fund beat the S&P 500 10 out of the 27 past years. Either way, what matters is staying the course.

[@TrendyStone]

With terminal demographics, most of the planet is in for a tough time. China is following Japan but it’s happening before they got the population out of poverty…and much more quickly. Demographic cliff! Korea is in trouble and the EU is in population decline. The US will follow too…but 20 years later…which buys us time to develop an economic system that functions without population growth. 🤞Robots?

[@jamesmorris913]

A year later..and you are STILL waiting for non-U.S. to outperform. Time to "cut-bait", my friend; IMHO.

[@jugzster]

@@jamesmorris913 cut bait just because of a year of small underperformance? I don’t think so, I always buy for the long-term my friend. And who says I don’t own US stocks? I have all-world market-cap weighted funds, so majority is still in US

[@thegreat9481]

you’re being weighed down by the world…. Makes no sense to diversify something that is ALREADY diversified. How thin do you want to spread your dollars? Lol

[@zimne5212]

The quality of the finance education here is insane!

[@junkequation]

This video is so thoroughly convincing. The arguments are rock solid. I have always resisted owning international stocks because Warren Buffett and Jack bogle both advise against it. But I had been looking at vxus for a while. The dividend is about double that of vti. So now my portfolio contains 20% vxus. Jack bogle did say, he wouldn't stop someone from owning perhaps 20% international stocks as it won't hurt them too bad, lol.

[@JamesJoseph-u1y]

Not so fast...According to Ben, dividends are irrelevant.

[@dr_flunks]

i divested internationally after the greek austerity crisis and EU response. so far it's worked out.

[@SuperLeafyman]

@BenFelix Is there a publicly available source for the peer reviewed finance studies you cite? You are the only person I’ve found that cites actual sources, really great work over the years. Cheers

[@SuperLeafyman]

I see now you cite everything in the description, great.

[@andrewmihalik7575]

Brilliant and genius content, as always! One may learn so much, by watching this channel; it’s actually amazing. Oh, and so happy the short hair is back!!

[@Martin-qb2mw]

Companies like Spotfiy, Arm, Oatly etc all list in the US because they know that they will receive higher valuations there. If this doesn't send off major alarm-bells then you aren't paying attention. It doesn't make any sense that stocks on the NYSE or the Nasdaq trades at a premium to everything else simply based on their ticker symbols and this will likely not continue indefinitely.

[@larryjones9773]

So, Warren Buffett is wrong?

[@Martin-qb2mw]

@@larryjones9773 Warren Buffet has been wrong plenty of times in the past and he will be wrong again in the future. He is a genious and the best investor ever but no man is perfect. I'm not saying you should invest nothing in America but the market is expensive and diversification makes sense.

[@Danielle_1234]

People in the US don't want to deal with currency conversions, and because the US has the largest investing pool in the world, it makes sense that companies that list in the US will get better results. It's supply and demand. There is more stock buyers if you list in the US pushing prices higher. Likewise, as long as US currency continues to stay strong, people in other parts of the world want the currency conversion so they're more likely to invest US. If the US dollar falls too much, that's when you should get concerned, because international investments will dry up.

[@Martin-qb2mw]

@@Danielle_1234 Of course, there are tons of reasons why people prefer to invest in the US above other markets. However, none of these reasons change the fact that high prices means low expected returns. That's reason enough to diversify away from one of the most expensive markets on the planet.

[@B1gLupu]

OMX Helsinki 25 (Finnish Stocks) has outperformed the S & P 500 this year, due to the appriciation being lower and there having been less expectations on the stocks. If you diversify to Europe (where stocks are cheaper) with your main investment in the States, you get downside protection when the market doesn't go your way.

[@zvxcvxcz]

Indeed, VSGX is carrying my index investments at the moment. The others are mostly still positive for me but VSGX is the star year to date.

[@captured_agent5714]

I stick everything in VFIAX and VTSAX but with strong misgivings - fairly early in retirement savings but mindful of that risk long term. Good reminder to add a slice of VTIAX. Great video 👍🏽

[@TheoreticallyNo]

Excellent video! As someone who owns value factor and international (and US), it hasn’t always been easy to stick with it the past 10-12 years while the US large cap market has ripped.

[@justforyoublue]

So hyped to watch this video. Thanks Ben.changing lives.

[@rafaelo1]

I use ETF tracking FTSE All-World index and I think it's great for simple, long term portfolio.

[@dejviddejvich573]

Yes

[@marianahenriquez7003]

Do all in one ETFs like VEQT offer enough diversification? How can I measure the correct amount of diversification?

[@sadatktraining]

yes, holding VEQT alone is enough. As of today, the underlying ETFs of VEQT hold 13,422 companies all around the world. You pay Vanguard a fee of 0.24% for their rebalancing and maintenance of this ETF, which is a steal. You can just buy VEQT periodically and forget about it.

[@patrickmack7]

Great video, Ben. I do wish you had addressed cost of ownership fees, foreign taxes, and currency risk when contemplating whether to include global diversity for US citizens. Net of those taxes and fees, is it still worth it to diversify or is the risk premium completely wiped out?

[@BenFelixCSI]

I think it’s still worth it but there may be an argument for some home country bias for the reasons that you mentioned. Topic for a future video.

[@hugomartin6663]

​​@@BenFelixCSI , when adressing the home country bias topic (can't wait), would love to hear the case for Euro Zone (should you overweight your country - e.g France or Germany or is it sensible to overweight the entire economic zone since it shares the same currency)

[@BenFelixCSI]

That might be outside the scope of the video for me to really dive into, but once I walk through the reasons for a home country bias you should be able to answer that question.

[@jamesmorris913]

Oh..and don't forget higher expense-ratios for non-U.S funds, as well.. ANOTHER "fence" to have to jump over.

[@mikephilpot9857]

I try to keep my portfolio balanced around 60%-US/30%-Itnl EX US Developed/10%-Emerging Mkts which is close to global mkt weights. I agree completely with the need for global diversification. Thx @Ben Felix for yet another valuable video. Big thumbs up! 👍

[@raz_r]

Thank you for sharing your knowledge. I am in awe of the research put into this work.

[@alanlimongi4549]

Great video thanks. Here is a proposal for a future video: the role of alternative investments (private equity, hedge funds, digital assets) in portfolio diversification. Would love to hear your take on this topic. Cheers

[@huwhayes3300]

Thankyou Ben for the tremendous value that you provide!

[@BrendanEvan]

Leave it to Ben to crush all the heresay and rumors

[@hotshot58800]

Amazing content man! Love from India!

[@kvikende]

Being Norwegian, a nice thing about globally diversifying is that the currency movements dampens downturns. Because the NOK typically depreciates during a downturn, the downturn presented in NOK is not as big. This is bad for buying the dip though.

[@michaelsmith4904]

A large percentage of my losses in international equities has been due to the strong U.S. dollar in the past year or two.

[@kvikende]

@@michaelsmith4904 yeah it goes both ways. If you're in USD, that means international are extra cheap :)

[@JSmith-ce2xf]

I held international funds in my portfolio for most of my career and I am in my forties now. During that time international would crash when the US market crashed, and then international would just crash on its own while the US kept performing. I finally gave up on international and went 100% us, not because "USA! USA" but simply because I gave up on waiting for international to perform. It's been so many years now that I assume there is some structural reason why it has been this way, and for those who will mindlessly say that past performance does not predict future returns, that can apply to investing in all equities, so why not just put everything in 10 year t-bills, or your mattress? There certainly are many people that passionately argue it is necessary to invest in international equities, but apparently not enough of them to drive up the prices of those equities.

[@timetraveller3063]

I hold HSBC FTSE All-World which is 58% US, the rest is developed and emerging markets. All market cap weighted. However, thats only 50% of my total portfolio. Another 25% goes into a global technology index tracker and 25% Scottish Mortgage Investment Trust. Balance risk against capital preservation. All are globally diversified.

[@Pieter2360]

Great explanation. Living in Belgium, I find it astonishing that there are people here who still believe investing their life savings in only the domestic market (which in the case of Belgium is 0,25% of the global market cap) is a good idea 😂.

[@thegreat9481]

Now why would you ever compare Belgium stocks to US stocks? Come on thats silly

[@Pieter2360]

@@thegreat9481 Exactly my point :-)

[@openmatbjj4102]

In MSCI ACWI index, US market is around 60%. The rest of developed and emerging are around 40% combined. Which part of the portfolio is better diversified US(bigger but correlated) or the rest? And since the US market has much higher valuations, can we achieve better real diversification and higher EV by reducing exposure to US market from 60/40 to 50/50 or even 40/60?

[@djayjp]

Another Ben Felix textbook, university-class, reference quality video.

[@incredibletoten]

I'm curious about country weights in a portfolio. From your past video on home country bias I remember a suggestion of an equal split between US, home and international stocks. Does this still hold? Great video, as always!

[@michalsladek8809]

Here it makes sense to keep it in same way as stocks itselves - based on market cap. There are ETFs covering most of it (speaking about big and mid size caps) like Vanguard FTSE All World or iShares Core MSCI World. US is then about 60 % and 40 % is divided into rest of the world.

[@markk6238]

Thanks! you are answering the questions i have in the back of my mind for years.

[@ghjong001]

There are two ways to look at the same situation where asset class A outperforms asset class B: 1. Whoah, 'A' is doing great. I should sell 'B' and buy more 'A'. 2. Hmm, A seems due for a downturn. I should rebalance into more 'B'. Whether A is US, growth, or large cap, the first thing to check is whether there's a structural reason for the outperformance. If so, by all means buy 'A'; if not 'B' seems more sound.

[@larryjones9773]

Structural reason = rule of law? I can barely tolerate the corruption in the U.S. I've traveled some internationally, and I 'sensed corruption'. It sounds like I should stick with my S&P 500 portfolio? I'm retired with a 100% stock portfolio. And, doesn't the S&P 500 have international exposure?

[@thomas6502]

Thanks Ben, you are among the most sensible friends I've never met. Keep up the great work. (Also, curious if VXUS is a decent, hypothetical means of getting that exposure, or if there are other vehicles available to DIYers that are worth a deeper dive. As a continuing student of repentance, suggestions are appreciated.)

[@takatsu5]

I don't know what Ben would write, but when Vanguard designs a portfolio, they use their own VXUS or VEU, which are very similar, for ex-US exposure.

[@TheLKStar]

Is there an easy way to do this? Like a "developed world index"?

[@Aktsok]

With rising populist trends around the globe, how will it affect this investing strategy? The way I see it, all the data pulled in this video was during times of increasing globalization. If we become more independent in North America I see the likely hood of economic convergence lessening in turn creating a weaker investing climate internationally as there will be less capital flowing into other countries

[@BenFelixCSI]

The data earlier in the samples discussed here are representative of a time when the world looked like today in terms of globalization. After WWI global finance contracted and foreign investment was frowned upon - this would not have been a good time to be an international investor. It is possible that we go back to a similar situation. I believe that this is a strong argument for a home country bias (though not a total dismissal of international diversification).

[@Aktsok]

@@BenFelixCSI Thanks for getting back to me, Ben! Curious to know, how are you measuring this sort of political risk? I find interesting to see the increase of capital investment domestically. Like what we’re seeing in the semi space with INTC. Can you see the fragilities of the global supply chain and security threats supporting a populist movement?

[@BenFelixCSI]

@@Aktsok I do not have a quantitative measurement, but my thinking is influenced heavily by William Goetzmann and Niall Ferguson. papers.ssrn.com/sol3/papers.cfm?abstract_id=560024 www.brookings.edu/wp-content/uploads/2008/03/2008a_bpea_ferguson.pdf

[@fede198888]

Great video! So what is the right (rational) amount of domestic stock to keep in the portfolio? The same weight of the domestic market over the world market?

[@gustavobvitorino7950]

Best content!

[@DJoppiesaus]

Another great and informative video by Ben, thank you!

[@x01509]

I love the on screen citations.

[@testaaa88]

Thank you for the great content! So, better to diversify across geographies (and so far so good) and also considering small caps being more related to the domestic market than big caps, more related internationally ?

[@VeeeBee8033]

Thanks, Ben!

[@Quincyq15]

Whoa Ben Felix rises!

[@Mohamed_Salah8]

Do you consider the american blue chips as American or International?

[@MFGBG123]

More arguments for index funds! Great video! An idea for a future video/question: given that I do want to invest using a globally diversified portfolio, could you explain the difference it makes if I invest in an ETF or a more traditional index fund? ETF's seem extremely popular in North America while very few seem know of them in my country (Sweden).

[@MikhailVasilev]

The main question for me is: what is a proper proportion? I have 1/3 US, 1/3 EU, 1/3 others. Is it okay or not?

[@zvxcvxcz]

I'm tempted to suggest by market cap.... but I have no idea.

[@manudiez7556]

@BenFelixCSI - I am trying to understand how important is the role of currency when diversifying in international equity. Are you aware of any robust paper/study analysing how much of the difference in performance between US and International is actually related to the currency movements?

[@Danielle_1234]

Exactly. Currency conversion is important.

[@Wds__99]

One advantage of USA only portfolio is that USA companies are more regulated than international. So there is more safety than stocks held in dodgy markets in dodgy countries.

[@qjsharing2408]

I hear that. Everyone has different risk analysis, and that's actually why I use mutual funds for my International allocation. It's a stupid hope, but I'm hoping that they also have an incentive to keep an eye out for sketchy stuff

[@gianthills]

Higher priced USA stocks = lower returns

[@Thurgor_Supreme]

Just buy VT and buy a lot of it

[@25andinvested]

One year later. Ben, kinda miss the shave.... also still the best video

[@rexmundi273]

Update us on the yield curve.

[@BlindBison]

3:20 What does that mean “Adjusting for their valuation changes”? Thanks!

[@SeaJay4444]

Stock prices went up, but earnings didn't keep pace with the increase. US stocks became more expensive relative to their fundamentals. This is important because expensive stocks are less likely to have good returns in the future.

[@BlindBison]

@@SeaJay4444 thanks! That’s very helpful

[@misterr2359]

Excellent video, as always.

[@WhatIsThis-zq4hk]

Hi ben. Can you make a video about consumer staples. Historically they have higher returns and less risk. How is this not a free lunch?

[@rjsbass]

Ben - late to the party, but from this video I’m sensing that something like the FTSE All Cap Global Index (Vanguard’s VT as an approximation) most closely follows the advice in this video, as it is the closest thing out there to tracking the entire global market independent of cap size, sector, geography, etc. Would that be correct?

[@BenFelixCSI]

Yes VT approximates the global equity market. It’s a good starting point for a portfolio.

[@udarpavarota396]

I look at the top 10 holdings of SPY and VT and they're almost the same. What the hell? How is investing in VT being invested in the entire global market?

[@FlightDeckGA]

How much do people invest in US vs intl?

[@mukammedalimbet2351]

Awesome. Thank you very much for the valuable lessen

[@DuyNguyen-uz9ti]

Hi Ben, I have been enjoying your insights in investment strategies, economic theories and so forth. I am not an active investors and have all my investments in a ETF's, with a 80/20 split (I have a few years before I retire - 20). I have followed the principle of having my 80% equity split into USA, Canadian, Non-North American (EU mostly) and a small % in emerging markets. Markets haven't really been trending upwards recently. This year has seen a sharp dip. Should we consider switching our equity to lower risk stocks with dividends rather than stay with ETF's? I ask, but I understand that you may not be able to answer.Still I thought I would ask. Cheers

[@beachbum3338]

Hi Ben, How does an investor determine an allocation around the globe? Is there a low-cost ETF that gives proper TOTAL MARKET international exposure? Is it as simple as just buying XEQT and then leaving it alone? Also, what about taxes? Isn't investing globally going to create excess taxation?

[@FailMorePlz]

VTI (us) and VXUS(int)- and with vxus you get a foreign tax credit.

[@michalsladek8809]

Vanguard FTSE All World or iShares Core MSCI World (gives you large and mid caps exposure)

[@JakeCrashBurn]

If you prefer a single etf so as not to have to manually balance international vs. national, there is vt. Slightly higher expense ratio compared to the aforementioned vti and vxus manual balancing but you make up for that in time saved and simplicity in my opinion.

[@zvxcvxcz]

"Isn't investing globally going to create excess taxation?" That can be complicated and the answer is "it depends." There are tax credits that can be used against foreign tax on dividends, etc... but if you have a large portfolio you will probably run afoul of the limits for what can be written off. It will be different for Canadians as well... etc...

[@nb9797]

But do you mean internationally diversified on market weighted basis, or hand crafting through region ETFs to reduce US concentration in market cap indices?

[@BenFelixCSI]

Market cap weights, but potentially with some home country bias kzbin.info/www/bejne/oH-bnnx-q8pketUsi=IjhN3SxtR54Ns50L

[@khamady]

As valuable as ever! Thank you Ben!

[@howardliu7371]

Hi Ben, how often do you suggest investors to rebalance their portfolios?

[@scottv5796]

Does this hold true when taking into account after-tax returns? (just thinking as a Canadian and the taxation of Cdn eligible dividends)

[@qjsharing2408]

It is thrown into the calculation pretty simply as a reduced return. And then the diversification add stability but decreases total gains compared to investing in tax-advantaged ways. It's just a thumb on the scale

[@seamuslam]

Is there a recommended ratio between US and international stocks?

[@rexmundi273]

VT is an etf that has all-world stocks.

[@spectre4356]

Most would recommend market cap weights. So MSCI World ACWI IMI would probably work. This is coming from a non US investor.

[@chuckzuzak]

Vanguard study says 60/40 domestic/international

[@Aenion11]

My ETF portfolio is all Global but my largest holding leverages MSCI World Index, which means I don't hold Emerging Markets Does it make sense to do a 83% (World Index) - 12% (Emerging) split as some suggest?

[@Z75-h7g]

Compensate with EIMI or start buying an all in like VWRA or ISAC(blackrock)

[@Azel247]

Would the Vanguard ETF VDU be an example of international diversification?

[@billcashman5900]

The year is almost over and US stocks crushed international once again by double digits. US has outperformed international by over 400% since 1994 when Jack Bogle recommended sticking with an all-US portfolio. And International has returned less than intermediate term treasuries this century. The opportunity cost for those that chose to invest in international stocks is enormous. Should have stuck with the US and compounded the advantages of lower fees, greater tax efficiency (lower dividend yield), and simplicity (no foreign tax credit to deal with every year). Bogle principles are almost impossible to beat in the long run.

[@afridgetoofar1818]

Even Warren Buffett says a US citizen doesn’t need international. The money he’s leaving his wife will be invested in an S&P 500 index fund.

[@SuperLeafyman]

@BenFelix Have you ever though about hosting an online forum for more academic discussion? Related to the papers you cite and your analysis, etc.

[@matiasiozzia9547]

Thanks Ben! Solid content!

[@Bobventk]

Thank you so much Ben

[@calvinchong2197]

Maybe the prices are so low because international equities are expected to fare worse than US equities?

[@alankoslowski9473]

According to the asset pricing model, volatility and uncertainty are why prices are lower. International equities, esp emerging markets, have higher return potential, but are more volatile and more risk of under-performance.

[@Idisposable-v8t]

Do you feel like accounting for significant risks should include at least environmental factors? Your ideal portfolio has significant exposure to oil and gas, the new aspect is the governments around the world are starting to put laws in place that discourage investing in this sector, should not that be a concern? I mean AVUV categorizes 14% of its holdings as oil and gas related, shouldn't that be a risk dimension?

[@tomkenny8635]

Thank you for this extremely helpful and informative video. I was afraid that 26% of FTIHX in my Roth 401 was far too high but maybe it’s just right?

[@johnhyland338]

What would be the tax implications of purchasing an international etf?

[@JamesJoseph-u1y]

Say what you will, I'm just glad that for the last 10 years I ignored "professional" investment advice to diversity internationally. I would have had "sub-optimal" portfolio growth. Also, Ben, I think you need to update your research data. All of your quoted research reports are many year old and I doubt they reflect the last 20 years worth of stock market return data.

[@Fj8282haha]

then what the proper percentage allocation for international?? Thx

[@spector3881]

Welcome back to the head shaved club!

[@TheTechCguy]

I would still consider at least one international fund, to invest in, while still diversifying at home. That way, you're tapping into as large of a variety of funds across multiple markets and industries as possible to mitigate risk. NEVER go all in on one fund! Diversify, diversify, diversify!

[@adamguida2281]

@benfelixcsi - which international or total world global stock market index funds would you recommend for a canadian investor

[@fernandohp5362]

which emerging countries quality etf would you suggest

[@pabloperezlarrubia6050]

Great video, as always!

[@methyleneblue4659]

The most compellingly boring man on the internet. Every time... the same story ;). Thanks Ben. Great presentation.

[@chadferreira6799]

So what country would you recommend? I was looking at japan and or India any in-site?

[@purplanet5583]

Love from Korea! Love the way you always do your best research and quote literature.

[@Ramdroid07]

Hi Ben, Can you upload an exclusive video on Japan market crash for decades. And how to diversify during that kind of crash were the whole market is down for decades

[@BlackBull_Markets]

Great video, keep it up

[@billcashman5900]

International investing has a significant disadvantage that isn’t discussed enough: costs. The expense ratios of international funds are usually double or more compared to U.S., and that doesn’t include the additional hidden costs of international investing such as higher brokerage commissions as well as stamp duties, levies, clearing fees, and exchange fees in some markets. The foreign tax credit is also lost in retirement accounts, adding another 30 basis points or so of tax cost. International funds have higher dividend yields which makes them less tax-efficient in non-retirement accounts. Jack Bogle knew what he was talking about when he said international investing is unnecessary.

[@Idisposable-v8t]

In canada we have the opposite relationshp with US funds - taxation on dividends. RRSP is the only account type that makes sure US does not tax us, but then it only works on individual stocks, not ETFs... it's maddening tbh.

[@i-postm4943]

Thanks for detailing the hidden fees of foreign equities.

[@jaradfisher1398]

Great video, thank you! What weighting between Canada, USA, Emerging, and Developed markets would you advise as being optimally diversified?

[@havaneseday]

I believe his last portfolio that tilted small cap value reflected 40%U.S. 30%CAD and 30%Int'l (75 dev/25 emerg)

[@danielotoole9610]

So all in VTSAX isn't it? Damn guess I'll go with two funds

[@Drazzziin]

Why not VT?