I see that you're UK based. As a U.S.-based investor I share your concerns and address them by using a 60:40 blend of Vanguard Total U.S. Stock Market ETF (VTI) and Vanguard Total International (VXUS). This is essentially a "homemade" equivalent of Vanguard's Total World Stock Market ETF (VT), which holds equities at global market cap weightings. VT is currently 61% U.S. and the Magnificent 7 tech stocks comprise 17.34% of its assets. For what it'w worth, Vanguard has used 40% in international stocks in all of its LifeStrategy all-in-one funds for many years and was regularly criticized for doing so during the long run of U.S. stock outperformance we've seen for the past two decades. Now they're looking like the smartest guys in the room again. For a U.S.-based investor it must be said that owning foreign stocks has historically been more of a currency play (which is why it didn't work out well during long periods of U.S. dollar strength) but with the gigantic growth of tech fueled by the AI frenzy ex-U.S. stocks have in effect become a small and mid-cap play and a way to diversify in industries towards corporations making real physical things and delivering tangible services. One could arguable do this more effectively by tilting towards small cap and/or small-cap value stocks using super concentrated funds like Avantis's AVGV but as a conservative retiree I'm more comfortable just sticking with market-cap weighted funds.
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I see that you're UK based. As a U.S.-based investor I share your concerns and address them by using a 60:40 blend of Vanguard Total U.S. Stock Market ETF (VTI) and Vanguard Total International (VXUS). This is essentially a "homemade" equivalent of Vanguard's Total World Stock Market ETF (VT), which holds equities at global market cap weightings. VT is currently 61% U.S. and the Magnificent 7 tech stocks comprise 17.34% of its assets. For what it'w worth, Vanguard has used 40% in international stocks in all of its LifeStrategy all-in-one funds for many years and was regularly criticized for doing so during the long run of U.S. stock outperformance we've seen for the past two decades. Now they're looking like the smartest guys in the room again. For a U.S.-based investor it must be said that owning foreign stocks has historically been more of a currency play (which is why it didn't work out well during long periods of U.S. dollar strength) but with the gigantic growth of tech fueled by the AI frenzy ex-U.S. stocks have in effect become a small and mid-cap play and a way to diversify in industries towards corporations making real physical things and delivering tangible services. One could arguable do this more effectively by tilting towards small cap and/or small-cap value stocks using super concentrated funds like Avantis's AVGV but as a conservative retiree I'm more comfortable just sticking with market-cap weighted funds.
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Link to comment from March 7, 2026