Asset Class: US Stocks / International Stocks (Sector: All / Industry: All)
Original Investment Thesis (8/2019): If I want to hold stocks and can’t find individual stocks that I consider good enough to have as an individual position I want to own all stocks as cheaply and with as much tax efficiency as possible. The VT ETF does that. It provides me with the entire world for pennies on the dollar. This ETF owns over 8,100 stocks in all countries and weights the countries and companies by market cap within the portfolio. It is designed to be a representation of all stocks, of all sizes, in all markets by tracking the FTSE Global All Cap Index. This makes it, in my opinion, the ultimate index fund. I want to own the entire world to eliminate any home country bias in my portfolio. America has been the place to be invested for a long time and it might continue to be but also it might not. It is an ETF so the tax efficiency (with a very low 9% turnover) is better for me than owning a similar mutual fund. The expense ratio is only .09% which is pretty amazing for an investment with access to international markets. For me, VT is seemingly the most perfect way to allocate to stocks. So, if I ever feel like I can’t ‘beat them’ I’ll use this to ‘join them’.
Current Thoughts (9/22/2019): Long term holding. If I can find a cheaper one-stop-shop world index ETF that keeps me properly weighted across all the world’s stock markets, I’ll go with it. I still have not found anything better. I’ve been investing in individual companies and tracking my progress for around 2 years. I’ve had some successes and also had some setbacks. It is too short of a window to tell if I will be successful in my quest to beat the “market” over a long time period. It is a lot of work and it would be easier to just put all my money in VT and go for a walk, hike, or bike ride. But I find it interesting doing what I’m doing now so I’ll keep doing what I’m doing…for now (subject to change mind any day).