Key insights
- The post discusses the underperformance of VXUS (ex-US equities) relative to VTI (US total market) within an inherited IRA. The author questions whether to maintain the current allocation or shift towards a US-centric approach. The historical drag on portfolio performance due to international exposure is highlighted. While relevant to individual portfolio strategy, the post's broad market impact is limited.
My family is sorting through my dad’s inherited IRA accounts and we noticed that almost half of his portfolio is invested in VXUS. If you review the annualized returns of this etf it’s actually been a huge drag on his portfolio. Between the financial crisis of 2000 then 2008 and then his advisor putting most of his wealth into VXUS starting in about 2010 it’s actually kind of a shame. He still did fine but it could have been probably twice or three times as good if he just held VTI or SPY. What do you think about VXUS vs VTI going forward? Best to just keep things as is?
Thank you for your insight. I hope this post can clarify things a little for us and help others gain insight into similar questions.