Vanguard Total World Index Explained [VTWAX | VT ETF] |
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The Vanguard Total World Stock Index (VT ETF | VTWAX) has over 9,000 stocks across 49 markets! We discuss the details and pros/cons of using this index versus investing in US and International indexes separately.
#Vanguard #VTWAX #VTETF --- Follow up Videos: Should You Invest in International Stocks? https://youtu.be/vd_KcudZo3U Tax-Efficient Asset Allocation [5 Steps to Avoid Taxes] https://youtu.be/5t7IRZVKkNE S&P 500 vs Total Stock Market? https://youtu.be/FhTR93AsELA Three-Fund Portfolio [The BEST Portfolio!] https://youtu.be/R81Z-obeB3s --- Referral Links Get $20 when you try Personal Capital (when linking an investment account): https://pcap.rocks/n55809 Get a $300 bonus, 6% back on groceries, 3% back on gas: http://refer.amex.us/NICHODReH5?xl=cp19 Get a $200 bonus, 5% back on groceries, 3% back on dining: https://www.referyourchasecard.com/18a/2KKJFCXH9J Get $30 and cash back when shopping online: https://www.rakuten.com/r/ENJAYD2?utm_campaign=RAF&utm_medium=RAF%20share&eeid=45830 Great Books for Financial Independence Bogleheads’ Guide to Investing: https://amzn.to/3KOcRB7 Bogleheads’ Guide to the Three-Fund Portfolio: https://amzn.to/33UuBu1 Asset Protection: Concepts and Strategies for Protecting Your Wealth: https://amzn.to/3oarULI Retirement Planning Guidebook: https://amzn.to/3skso3h All About Asset Allocation: https://amzn.to/34gLIG4 Equity Valuation and Analysis: https://amzn.to/3g9LKSM Disclosure: Referral links this are affiliate links. At no additional cost to you, I might earn a commission if you make a purchase. -- Links VTWAX Prospectus: https://personal.vanguard.com/us/faces/JSP/Funds/ProspRep/FundProspectusReportsWinJSP.jsp?fundId=5028&isReqFromProducts=true FTSE Global All Cap Index Fact Sheet: https://research.ftserussell.com/Analytics/Factsheets/Home/DownloadSingleIssue?issueName=GEISLMS&IsManual=false US Code (Foreign Tax Credit): https://www.law.cornell.edu/uscode/text/26/853 --- Outline 00:00 Intro The Vanguard Total World Stock Index (VT ETF | VTWAX) has exposure to over 9,000 stocks across 49 markets around the world! We discuss the details and pros/cons of using this index versus investing in US and International Indexes separately. 00:59 Principal Investment Strategies This fund tracks the FTSE Global All Cap Index. This is a market-cap weighting index representing performance of large, medium, and small companies in both developed and emerging markets. We discuss what this means. 03:10 Principal Risks This fund has several risks outlined in the prospectus. We discuss some of these risks. 04:05 Portfolio Composition We take a look at the construction of the portfolio, including: regional allocations, country allocations, and top companies. 05:09 Expense Ratio The expense ratio of VTWAX is 0.1%, which is $1 per year for every $1,000 invested. VT ETF is 0.08% which is $0.80 for every $1,000. 05:51 Performance Since the VT ETF was created in 2008, it has delivered an annualized return of 7.69%. The 10 year annual return is 9.46%. We look at how this compares to the US Stock Index (VTSAX / VTI). 07:04 Principles of Index Investing We briefly discuss the core principles of index investing, which are relevant to a global market-cap weighting. 08:14 Pros & Cons We discuss the pros and cons of using this single Total World Stock Index. 13:39 VTWAX != VTSAX + VTIAX (VT != VTI + VXUS) While you could invest in separate US & International indexes, they aren’t EXACTLY the same as VTWAX. 14:50 My Thoughts I think the choice of using the Total World Stock Index versus separate US and International Indexes boils down to optimizing for time or a possible slightly higher return. I explain why I have this opinion and the decision I made for my portfolio. --- Disclaimer: I am not a financial advisor. My videos are for educational purposes and are my opinions. You should seek advice from a professional advisor or perform your own research. There is no guarantee you will be successful following my opinions. |