I talk a lot about the S&P 500. The main reason is it has a very long track record with readily available public data. It makes it convenient to chart the impact of long-term investing.

BUT whenever I mention my portfolio or the various examples of perfect portfolios out there, I always talk about diversifying outside of just US stocks. This year is a good example why. As of today, April 18th, VTI (Total US Market) is -10.5% year to date. Meanwhile, VXUS (Total International Market) is +4.3%. That’s a gap of almost 15%. For those of us (all of us) who are feeling the hurt with the current stock market, being more diverse would certainly ease the blow. It’s providing better returns this year and very well may provide better returns going forward. We don’t know which stock market will do the best, so I buy them all!

There’s a credible argument that the US is such a global economic superpower that buying US companies is global investing. I’ve never agreed with that, and again, sadly, 2025 is an example why. If US policies change to restrict global trade and/or the US dollar is weakened, international markets will outperform. Both of those things currently seem to be happening.

So this year, I have not changed my portfolio by even a penny. Because I’ve always been investing in both US and non-US stocks. If you have been 100% US to date, you have a difficult choice to make. Do you stay the course, stick to your plan for decades, and realize that thrashing between what just happened to outperform by 15% will leave you worse off in the long run? That’s a good idea. Or do you adjust and include an international component going forward? Both are reasonable options. I’m a fan of staying the course, but I also invest internationally myself.

Also, in this chart: “ER” means expense ratio, “YTD” means Year-To-Date, and “MF” means Moth… I mean Mutual Fund.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy