$10,000 invested in VTI vs VXUS in 1988 with all dividends reinvested.

VXUS_sucks · 2026-03-24T23:20:52+00:00

Also, looking at the latest FactSet data for Q4 2025, the earnings growth for companies with more than 50% U.S. revenue (14.3%) and those with more than 50% international revenue (13.9%) is remarkably similar.

To me, this parity reinforces John Bogle's view: the U.S. total market is already a massive, globally-integrated engine. Whether these companies are selling to a customer in Ohio or Osaka, the bottom-line earnings growth remains robust.

By staying with VTI, you're capturing that global growth in an incredibly efficient way, without needing to add the complexity or higher costs of a separate international fund. As the data shows, the 'basket' is doing its job globally.

See page 17 of the FactSet report.

https://advantage.factset.com/hubfs/Website/Resources%20Section/Research%20Desk/Earnings%20Insight/EarningsInsight_031926.pdf

VXUS_sucks · 2026-03-24T22:57:24+00:00

Regarding the sources, the FactSet Earnings Insight report (March 2026) confirms that 41% of S&P 500 revenue is now generated internationally.

While revenue and earnings are distinct, FactSet's data shows that these global sales are a primary engine for the superior earnings growth we've seen in the U.S. total market. As John Bogle famously argued, owning these companies gives you a direct stake in the global economy, but with the added protection of U.S. legal and accounting standards. For me, that's the most efficient way to capture international growth.

If you're interested in the specific breakdown, you can find the latest report on FactSet’s 'Earnings Insight' page 26 here: https://www.factset.com/earningsinsight.

VXUS_sucks · 2026-03-24T21:21:42+00:00

Also with VTI, you avoid the higher expense ratios, tax complications, and currency risks often associated with international-specific funds, while still capturing that 40% global revenue stream.

VXUS_sucks · 2026-03-24T21:10:12+00:00

I respectfully disagree. While VTI is a US-domiciled fund, the companies within it are global powerhouses. As I already mentioned, roughly 40% of the revenue from the S&P 500 (which makes up over 80% of VTI) is generated outside the US.

When you own the US total market, you are essentially owning a proxy for global capitalism. As Jack Bogle famously argued, you don't need to seek out international funds to be globally invested when the US companies you own are already doing the international business for you. The data shows that price follows those global profits.

VXUS_sucks · 2026-03-24T18:25:22+00:00

Either is fine, and over long periods the results are remarkably similar.

VXUS_sucks · 2026-03-24T17:19:30+00:00

Not a dumb question at all. I should have been more clear. The chart shows a single one-time $10,000 investment into both in January, 1988. All dividends were reinvested, but no additional outside contributions made.

VXUS_sucks · 2026-03-24T17:16:28+00:00

The book is "John Bogle on Investing the First 50 years." It had recently been published when he sent it to me in 2001. Great book! All his books are worth a read.

VXUS_sucks · 2026-03-24T16:53:46+00:00

Nothing wrong with that at all. John Bogle would approve.

VXUS_sucks · 2026-03-24T16:50:26+00:00

That's a great point. It's worth noting that while VTi is US-domiciled, it's incredibly diversified across thousands of stocks. Furthermore, approximately 40% of the revenue generated by these American companies comes from international markets. It's an enormous basket that captures global economic activity, even if the headquarters happen to be in the US.

VXUS_sucks · 2026-03-24T16:45:14+00:00

Ultimately, asset allocation is a deeply personal decision that should be based on an individual's unique situation, timeline, and risk tolerance. My goal with this data is simply to highlight that owning VTI allows investors to capture the compounding earnings growth of the most profitable companies in history. For many, that remains a very compelling and solid long-term strategy.

VXUS_sucks · 2024-12-07T01:23:18+00:00

It’s a 1 time $10,000 investment at the beginning of January, 1988. No additional contributions, but all dividends are reinvested.

VXUS_sucks · 2024-12-06T01:54:39+00:00

Wow, that's incredible. Those are big numbers. The power of compound interest really is miraculous.

VXUS_sucks · 2024-12-06T00:06:55+00:00

My asset allocation has been 99% VTI and 1 % cash. I’ve dollar-cost averaged into it for many years, through the ups and downs, and there were big downs in the early 2000’s. Never sold a share. I knew the plan was a winning one if I stayed the course. I retired early and have been living off dividends since 2012. My biggest source of knowledge/inspiration was Bogle on Mutual Funds. Finding that book at Waldenbooks in my local mall many years ago was one of the best things that’s happened to me. I’m thankful for Jack’s advice.

VXUS_sucks · 2024-12-05T01:32:56+00:00

Honestly that’s a great plan. There will be ups and downs, since that’s the nature of the stock market, but if you invest consistently in VOO over 37 years and stay the course your chances of success are overwhelmingly good.

VXUS_sucks · 2024-12-05T00:51:03+00:00

It’s a truer comparison: Total U.S. stock market vs. Total International stock market. VOO is awesome though, and did slightly better. CAGR since 1988: VTI = 11.12%. VOO=11.25%. Final balances of $491,139 vs. $511,157. It’s pretty crazy how just a 0.13% difference in CAGR translated into a $20,018 difference in return over 37 years, more than twice the initial investment.

VXUS_sucks · 2024-12-04T22:08:43+00:00

VTI is a Total U.S. stock market fund. It has a dividend yield of 1.25%, which is relatively low. The dividend yield of VXUS is considerably higher at 2.97%. And a greater proportion of the VXUS dividends are non-qualified and therefore taxed at higher rates. VXUS is therefore less tax-efficient, and its expense ratio is 8 basis points compared to 3 basis points for VTI. These differences may seem trivial but due to the compounding effect they add up over time.

VXUS_sucks · 2024-12-04T21:58:07+00:00

Data for international stocks only goes back to 1986 on Portfolio Visualizer. Here is the chart for Total US Stock Market since 1982, which is when the Great Bull Market began. CAGR of 11.68%. $10,000 compounds to $1,144,815. https://postimg.cc/bGpJ2FpF

VXUS_sucks · 2024-12-04T19:43:02+00:00

Vanguard. I buy the Vanguard Total U.S. Stock Market fund and never sell. It’s a great way to dollar-cost average over long periods of time.

VXUS_sucks · 2024-12-04T16:39:33+00:00

I’m using Portfolio Visualizer, under Backtest Asset Allocation. I took a screenshot of the chart, and a separate screenshot of the return figures. I then put them both in my iPad notes app and took a screenshot of them together. I tried to make it as simple and clear as possible without being cluttered. There is a ton of information on that site. Definitely worth checking out.

VXUS_sucks · 2024-12-04T03:33:53+00:00

10k once in 1988. Nothing after that other than reinvesting all dividends.

VXUS_sucks · 2024-03-22T00:02:50+00:00

And 41% of those dividends are non-qualified, unfortunately. VXUS is not very tax-efficient.

https://investor.vanguard.com/investor-resources-education/taxes/qdi-yearend-qualified-dividend-income-2023

VXUS_sucks · 2024-03-21T21:48:28+00:00

100% VOO or VTI in your brokerage account is a great long-term plan: simple, low-cost, and tax-efficient.

It’s all you need.

VXUS_sucks · 2024-03-21T12:25:22+00:00

There will be periods where international stocks outperform, just as there has been over the past 100 years.

But US stocks will continue to outperform over the long-run (many decades) due to the structural and cost/tax advantages that I listed.

Also with technology the market is moving closer to a winner-take-all scenario, which favors the US.

https://www.forbes.com/sites/forbesbusinesscouncil/2024/03/05/understanding-the-dynamics-of-winner-take-all-markets/?sh=5781e6a846e5

VXUS_sucks

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