MoneyLab

ETF investors may have wondered whether they should add international stocks to their portfolio or stick with the S&P500. Proponents of international stocks highlight their lower valuations and potential diversification benefits as reasons to invest in them. However, well-known investors like Warren Buffet and Jack Bogle believes that non-US stocks are unnecessary. I do tell people, feel free to disagree with me because I'm not always right, but I have 0% in non-U.S. I say you don't need to have non-U.S., but if you do, limit it to 20%.   -- Jack Bogle, 2018 interview with Morningstar   Reasons to stick to US stocks   One of the reason why investors favour US over non-US is that the US stock market is considered one of the most efficient in the world, supported by sound financial institutions and governance as well as strong investor protection laws. The US economy is also highly diversified and includes a broad range of industries, making it more resilient against a...

Investing in exchange-traded funds (ETFs) is an effective way for investors to diversify their portfolio and gain exposure to a broad range of investments. However, some folks may find it difficult to stick to this "boring" way of investing, particularly when they hear the extraordinary returns from other investments, be it Dogecoin, Arkk funds or technology stocks. This is understandable since many people like to compare themselves to others and may feel like they are missing out on phenomenal returns achieved by their peers in a short period of time. As an ETF investor, you need to accept that you will never be the number one investor on an year-on-year basis, not even close. But the good news is, over a period of several decades, you will almost always be better than majority of the investors who adopt a more active investment approach. Feel like you are missing out ETFs are designed to provide returns that are consistent with the market average. This means that they will ...