Looking at something like VT, it has not only underperformed the S&P500, but in this recent downturn, the global diversification hasn't helped at all. Correlations all went to 1, and Ex-US stocks are dumping worse than US equities. VT is down almost 15% YTD, meanwhile VOO is down just under 14%.
As a Canadian investor it's even worse. ETF's like XEQT (equivalent of VT) are less than 10% away from pre-covid prices, meanwhile SPY is over 15% away from pre-covid prices.
Holding global market cap weighted ETF's has been brutal. Why should one stick with this strategy? Everything I've seen tells me that European/Asian/Developing markets just don't have the same outlook on equities as the US. They have worse investor protections, more corruption, less transparency. I just don't see the upside to investing outside the US.
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