30 sec. read
Bogle believes you don’t need International Index Funds. He said if you do want to have it, he recommends no more than 20% of your stock allocation into an International Index Fund.
“My view that a U.S.-only equity portfolio will serve the needs of most investors was (and still is) challenged by, well, everyone. As the argument goes, “Isn’t omitting non-U.S. stocks from a diversified portfolio just as arbitrary as, say, omitting the technology sector from the S&P 500?” (p. 245)
“I argued the contra side. We Americans earn our money in dollars, spend it in dollars, save it in dollars, and invest it in dollars, so why take currency risk? Haven’t U.S. institutions been generally stronger than those of other nations? Don’t half of the revenues and profits of U.S. corporations already come from outside the United States? Isn’t U.S. gross domestic product (GDP) likely to grow at least as fast as the GDP of the rest of the developed world, perhaps at an even higher rate?” (p. 245)