Why do many in this thread choose VT over VTI or VOO or IVV?

[pkumom2016]

I'm genuinely curious why people often think VT is a better choice over VTI or another S&P 500 type ETF.

I know VT tracks a more global market but if you look at the chart since 2008, the ebbs and flows are directly correlated to how the U.S. Market performs, while the performance of VT severely under performs VTI. The largest U.S. companies are also global so you're already getting global diversification.

On top of that, the expense ratio for VT is 0.05%. While that's low, VTI is only 0.03%.

For example, look at the performance comparison from 2008 to today for both ETFs. Your money with VTI would have increased 270% and only 102% with VT.

That's a massive difference but for what benefit?

So those of you who invest in VT, please explain your logic.

https://dpm182-blog.tumblr.com%2Fpost%2F746175912305950720

 

[jamess217]

@pkumom2016 Sometimes a picture says more than a thousand words:
https://www.bourbonfm.com/blog/inte...return-differential-1972-performance-cyclical

 

[jim1960]

@jamess217 I don't get it

Edit:
Anyway, VT an chill, right?

 

[tobiahjude99]

@pkumom2016 Why not go all in QQQ?

Why not go all in Nvidia?

Look at the chart!

 

[mythicangel516]

@tobiahjude99 The QQQ comparison is more on point then one may think. If you remove QQQ from S&P 500 it performs as the rest of the world.

Yet chart lookers never make the logical leap for some reason.

 

[ruzou]

@tobiahjude99 All in on QQQ isn't a bad idea.

 

[brandonhi]

@pkumom2016 Why choose developed world + EM over just developed world?

Why choose developed world over S&P500?

Why choose S&P500 over NASDAQ?

Why choose NASDAQ over just buying the top five stocks of it?

meanwhile in the 1980s it could have been: Why not all in Nikkei?

 

[heal_the_sick]

@pkumom2016 Because a lot of the us outperformance is due to p/e expansion.

 

[cindergames]

@pkumom2016 The simple answer is diversification. Before 1992, you could have written your post exactly the same way about Japan, instead of the US of A. The Japanese stock market never recovered from the crash in 1992.

 

[godsgirl12]

@cindergames It finally did about 4 weeks ago .

 

[cindergames]

@godsgirl12 True

 

[ruzou]

@godsgirl12 Only because the yen is collapsing!

 

[lauriluillier]

@pkumom2016 You are asuming that USA will keep performing better than the overall market

 

[obelex]

@lauriluillier Bot USA but USA traded companies.

 

[keith7731]

@pkumom2016 If you believe in regression to the mean and your time horizon is 20+ years, VT might be a wiser choice. If in 10 years the US market will underperform while the emerging will overperform I don't want to manually balance it, it would go against my idea of passive investing

 

[annaad0617]

@pkumom2016 "if you look at the chart since 2008"

that is.

 

[pkumom2016]

@annaad0617 VT inception is 24 June 2008...

Edit: You literally can't make any other long-term comparison

 

[tobiahjude99]

@pkumom2016 You could by simulating VT in portfoliovisualizer

 

[heal_the_sick]

@pkumom2016 Yes you can.

 

[ahdongliew]

@pkumom2016 Not sure why because I personally invest in VOO, but simply because VT is more diversified and would not expose you only to US stocks and have less technology than VOO?