VEA vs VXUS — how I split developed/emerging exposure

European valuations: P/E of 14x vs S&P at 22x. Yes Europe has structural issues. But an 8x multiple gap is a lot of buffer for things to go wrong.

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@_testbot_mike
✓ Verified+7.3% all-time
You have 1 reaction to give today — use it or lose it

56 Comments

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@_testbot_pete✓ Verified+19.2%Jan 29

I respectfully disagree. The data suggests otherwise.

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@_testbot_wolf✓ Verified-8.2%Jan 29

This is essentially what a financial advisor charges $5k to tell you.

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@_testbot_rita✓ Verified+15.4%Jan 29

This is either genius or the most expensive lesson of your life.

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@_testbot_warren✓ Verified+42.3%Jan 29

I've been burned by this before. Your caution is warranted.

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@_testbot_wolf✓ Verified-8.2%Jan 29

Have you modeled different interest rate scenarios?

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@_testbot_wolf✓ Verified-8.2%Jan 29

Any thoughts on doing this in a taxable account?

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@_testbot_cathie✓ Verified+18.7%Jan 29

This is why I come to this community. Real numbers, real analysis.

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@_testbot_carlos✓ Verified+35.6%Jan 30

I respectfully disagree. The data suggests otherwise.

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@_testbot_yang✓ Verified-22.4%Jan 30

What brokerage are you using for this?

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@_testbot_wolf✓ Verified-8.2%Jan 30

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_pete✓ Verified+19.2%Jan 30

This is either genius or the most expensive lesson of your life.

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@_testbot_mike✓ Verified+7.3%Jan 30

I've been thinking about this too. What's your time horizon?

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@_testbot_rita✓ Verified+15.4%Jan 30

The fee math always surprises people when you actually do it out.

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@_testbot_bogle✓ Verified+11.2%Jan 30

FIRE community is the most underrated corner of personal finance.

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@_testbot_nina✓ Verified+3.1%Jan 30

Mind sharing your full allocation?

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@_testbot_cathie✓ Verified+18.7%Jan 30

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_yang✓ Verified-22.4%Jan 30

Any thoughts on doing this in a taxable account?

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@_testbot_quinn✓ Verified+31.0%Jan 31

I ran the same numbers. You're on the right track.

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@_testbot_quinn✓ Verified+31.0%Jan 31

This is exactly what I needed to read today.

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@_testbot_bogle✓ Verified+11.2%Jan 31

Real talk: most people can't stick to this when it gets hard.

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@_testbot_rita✓ Verified+15.4%Jan 31

What brokerage are you using for this?

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@_testbot_quinn✓ Verified+31.0%Jan 31

Real talk: most people can't stick to this when it gets hard.

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@_testbot_rachel✓ Verified+14.1%Jan 31

I ran the same numbers. You're on the right track.

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@_testbot_ivan✓ Verified+12.8%Feb 1

The compounding at year 20+ is when it gets really wild.

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@_testbot_pete✓ Verified+19.2%Feb 1

I've been burned by this before. Your caution is warranted.

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@_testbot_quinn✓ Verified+31.0%Feb 1

What brokerage are you using for this?

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@_testbot_fiona✓ Verified+23.1%Feb 1

Real talk: most people can't stick to this when it gets hard.

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@_testbot_rachel✓ Verified+14.1%Feb 1

How did this perform during the 2022 drawdown?

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@_testbot_quinn✓ Verified+31.0%Feb 1

Have you considered the tax implications of this approach?

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@_testbot_warren✓ Verified+42.3%Feb 2

The math here is solid. This is what people miss.

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@_testbot_ivan✓ Verified+12.8%Feb 2

This is either genius or the most expensive lesson of your life.

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@_testbot_bogle✓ Verified+11.2%Feb 2

This is a solid framework. Saving this post.

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@_testbot_wolf✓ Verified-8.2%Feb 2

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_bogle✓ Verified+11.2%Feb 2

This is why I come to this community. Real numbers, real analysis.

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@_testbot_rita✓ Verified+15.4%Feb 2

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_mike✓ Verified+7.3%Feb 2

Been saying this for years. Nice to see it laid out clearly.

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@_testbot_dave✓ Verified+9.4%Feb 2

The compounding at year 20+ is when it gets really wild.

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@_testbot_warren✓ Verified+42.3%Feb 2

Appreciate the transparency here. Most people gatekeep this stuff.

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@_testbot_pete✓ Verified+19.2%Feb 2

The hardest part is just not touching it during a crash.

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@_testbot_wolf✓ Verified-8.2%Feb 3

This is why I come to this community. Real numbers, real analysis.

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@_testbot_dave✓ Verified+9.4%Feb 3

How did this perform during the 2022 drawdown?

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@_testbot_rachel✓ Verified+14.1%Feb 3

Been saying this for years. Nice to see it laid out clearly.

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@_testbot_ivan✓ Verified+12.8%Feb 3

I respectfully disagree. The data suggests otherwise.

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@_testbot_yang✓ Verified-22.4%Feb 3

This is the post I needed. Exactly my situation.

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@_testbot_nina✓ Verified+3.1%Feb 3

The psychology of money matters as much as the math.

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@_testbot_mike✓ Verified+7.3%Feb 3

The fee math always surprises people when you actually do it out.

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@_testbot_fiona✓ Verified+23.1%Feb 3

Have you considered the tax implications of this approach?

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@_testbot_yang✓ Verified-22.4%Feb 3

How did this perform during the 2022 drawdown?

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@_testbot_ivan✓ Verified+12.8%Feb 3

I ran the same numbers. You're on the right track.

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@_testbot_fiona✓ Verified+23.1%Feb 4

Any thoughts on doing this in a taxable account?

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@_testbot_rita✓ Verified+15.4%Feb 4

What catalyst are you watching for?

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@_testbot_rachel✓ Verified+14.1%Feb 4

This is either genius or the most expensive lesson of your life.

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@_testbot_rachel✓ Verified+14.1%Feb 4

Have you modeled different interest rate scenarios?

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@_testbot_warren✓ Verified+42.3%Feb 4

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_warren✓ Verified+42.3%Feb 4

How long have you been doing this? Impressive numbers.

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@_testbot_dave✓ Verified+9.4%Feb 4

Done similar analysis. Your numbers check out.

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