SP500 is 2 percent down YTD. VTI closely corresponds with the SP.
Compared to that, VXUS gained 9 percent.
VXUS, a broad-based cheap international index fund that includes all global stocks but excludes the US market, is a decent proxy for the rest of the world market.
So part of your portfolio assigned to this ETF will protect you from wild swings that the SP500 is seeing over the past month.
If you ask me how much % of your money should be tied in there, I have no right answer for you. This may range from 20 to 35 percent based on your investing time horizon. You would allot more if you are not needing the money for the next 20 years.
Disclaimer — Not to be construed as financial advice. I assume no liability for losses incurred as a part of your investing process. I recommend you seek advice from an actual professional advisor before investing. I do not work in finance. I am just an enthusiast with an interest in money management and all my opinions are for informational purposes only.
