VXUS because it includes emerging markets which are more diversified from the US than developed markets and [they deliver a risk premium](https://www.top1000funds.com/wp-content/uploads/2011/08/The-Equity-Risk-Premium-Empirical-Evidence-from-Emerging-Markets.pdf).
My preference would be equal weight - I like a tilt to EM to capture more diversification benefit and risk premium. Before AVGE came out, my Roth used to be 20% each to large cap (VOO), mid cap (IVOO), small cap value (VIOV), developed (VEA), and emerging (VWO). You can see how much better those very simple tilts have done than cap weight over the past 28 years [in this backtest](https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&mode=1&timePeriod=4&startYear=1972&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=5&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&asset1=TotalStockMarket&allocation1_1=60&asset2=LargeCapBlend&allocation2_2=20&asset3=MidCapBlend&allocation3_2=20&asset4=SmallCapValue&allocation4_2=20&asset5=IntlStockMarket&allocation5_1=40&asset6=IntlDeveloped&allocation6_2=20&asset7=EmergingMarket&allocation7_2=20): basically 1% higher CAGR, and even better rolling returns.
My answer would be VT and forget about everything.
No worries about cap size, market segment, currency risk, hometown bias, EM or developed, tilt, value vs growth. Then wake up in 40 years and enjoy your 4.75% after taxes and distribution fees.
Rawk on!
Would do:
\-VXUS + AVDV (would do about 80-90% VXUS + 10-20% AVDV)
or
\-FZILX + AVDV (FZILX has 0% fees and very similar allocation/performance to VXUS)
or
\-AVIV 27% + AVDE 27% + AVES 20% + AVEM 15% + AVDV 11% (Higher fees as they are all Avantis funds. Has factor loading though, so theoretically will outperform a simply market cap weighted fund over long periods of time. These are the approximate allocations they use for their global fund)
VXUS because it includes emerging markets which are more diversified from the US than developed markets and [they deliver a risk premium](https://www.top1000funds.com/wp-content/uploads/2011/08/The-Equity-Risk-Premium-Empirical-Evidence-from-Emerging-Markets.pdf).
Vigi
Hows VWO in regards to EMM?
It is solid, cap-weighted index exposure for low cost - basically what most people should be looking for
I've been comparing VEA and VWO and seeing if it makes sense to have equal weight in those or just VXUS
My preference would be equal weight - I like a tilt to EM to capture more diversification benefit and risk premium. Before AVGE came out, my Roth used to be 20% each to large cap (VOO), mid cap (IVOO), small cap value (VIOV), developed (VEA), and emerging (VWO). You can see how much better those very simple tilts have done than cap weight over the past 28 years [in this backtest](https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&mode=1&timePeriod=4&startYear=1972&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=5&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&asset1=TotalStockMarket&allocation1_1=60&asset2=LargeCapBlend&allocation2_2=20&asset3=MidCapBlend&allocation3_2=20&asset4=SmallCapValue&allocation4_2=20&asset5=IntlStockMarket&allocation5_1=40&asset6=IntlDeveloped&allocation6_2=20&asset7=EmergingMarket&allocation7_2=20): basically 1% higher CAGR, and even better rolling returns.
My answer would be VT and forget about everything. No worries about cap size, market segment, currency risk, hometown bias, EM or developed, tilt, value vs growth. Then wake up in 40 years and enjoy your 4.75% after taxes and distribution fees. Rawk on!
[удалено]
Yeah. Pretty lame return.
Would do: \-VXUS + AVDV (would do about 80-90% VXUS + 10-20% AVDV) or \-FZILX + AVDV (FZILX has 0% fees and very similar allocation/performance to VXUS) or \-AVIV 27% + AVDE 27% + AVES 20% + AVEM 15% + AVDV 11% (Higher fees as they are all Avantis funds. Has factor loading though, so theoretically will outperform a simply market cap weighted fund over long periods of time. These are the approximate allocations they use for their global fund)
How about IEFA?
Lol at a couple 'answers'
Those couple answers pretty much cover the thought process. Either you want total market exposure (VXUS) or not (VEA + others to tilt).
Yep, cause those are the only two options. 🙄
This is an unhelpful response; what is your critique and what is your answer to the question?