The three fund portfolio recommends investing in
1. US stock market index
2. International stock market index
3. Bond index
I have been following this recommendation without a second thought. However, after five years, when I look back at the fund performance:
1. VTSAX (Stock market index) has 80.85%, VFIAX (S&P 500) has 85.62%
2. VTIAX (Intl. index) has 18.41%
3. VBTIX (Bond index) has -7.74%
While I can rationalize the investment in VBTIX as a safer option to stock index exposure, I don't see value in diversifying via Intl. Index. It has the risks, and doesn't outperform VTSAX. Is diversifying through this (even as low as 10% of my assets) really worth it?
1. US stock market index
2. International stock market index
3. Bond index
I have been following this recommendation without a second thought. However, after five years, when I look back at the fund performance:
1. VTSAX (Stock market index) has 80.85%, VFIAX (S&P 500) has 85.62%
2. VTIAX (Intl. index) has 18.41%
3. VBTIX (Bond index) has -7.74%
While I can rationalize the investment in VBTIX as a safer option to stock index exposure, I don't see value in diversifying via Intl. Index. It has the risks, and doesn't outperform VTSAX. Is diversifying through this (even as low as 10% of my assets) really worth it?
Statistics: Posted by fanoflazyportfolio — Thu Jan 04, 2024 1:53 pm — Replies 4 — Views 229
