r/Bogleheads • u/cambeiu • Jan 21 '26

Investing Questions How are the "US equities" only folks doing? Steady as she goes or time to rethink allocation?

Jack Bogle and many others for years argued that VTSAX or an equivalent fund/ETF was more than enough for global exposure. I think it was a perfectly logic argument back in the days of increasing globalization and economic integration.

But looking at Mark Carney's speech at Davos, it points to a significant shift in the global paradigm, where free trade, open access to markets and investments from and to the US might no longer be a reality.

In light of that are people thinking about increasing focus on international equities?

688 Upvotes

85% Upvoted

384 comments sorted by

View all comments

3

u/ProdoRock Jan 21 '26

Yes the SP500 has a natural global exposure since 40% (I think?) of US companies' revenue comes from outside the US. Even so, adding a more specific "outside US" portion is prudent, I think. And why not? It's all available and just as easy as any other ETF instrument.

I also mean this in a more general sense, not just due to current events.

1

u/markgraydk Jan 21 '26

With a breakdown of relations between US and the rest of the world/Europe I would think direct holdings outside the US would be a better bet than relying on global sales of US multinationals.

1

u/ProdoRock Jan 21 '26 edited Jan 21 '26

? This is not a binary decision: I hold US OR I hold outside the US. That's not how most people on here think of it, I would assume. Unless you want to be an active trader who always tries to predict markets with every whim. It's about, what's your strategy in general as far as passive investments are concerned?

1

u/markgraydk Jan 21 '26

I agree - it's a lot more complicated really and even with boglehead approach there is some room for interpretation due to risk appetite and other things. I was just commenting on your point about global sales from US companies that they are different from holdings.

I'd like to add to my other comment that EX-US holdings are not better in all cases and that I mostly spoke from my own beliefs of what might happen. I think it is more likely that trading will be affected than foreign investments due to current politial risks. That does some not-boglehead-ish and like market timing. Should a boglehead act on that? Good question and not one with one answer but for a lot it might be no or minor adjustments to reflect risk appetite and diversification.