Personal Investors

Learn more about domestic vs. international stocks

Vanguard research has shown that while holding some portion of a diversified equity portfolio in international equities has helped to temper the volatility of U.S. equities, the majority of the benefit was achieved as the international allocation increased from 0% to 20% of total equity exposure, with incremental additional benefit up to 50%. Thus for many investors, an allocation that falls between 30% and 50% should be considered reasonable, given the historical benefits of diversification.

How we determine domestic vs. international stocks

Your stock holdings are broken down as follows:

Domestic stocks

  • Vanguard domestic stock funds, the target domestic stock portion of Vanguard balanced and global funds.
  • The domestic stock portion of non-Vanguard funds as provided by Morningstar.*
  • Individual stock holdings classified by Morningstar as U.S. stocks.

International stocks

  • Vanguard international stock funds, the target international stock portion of Vanguard balanced and global funds, and the Vanguard Variable Annuity—International Portfolio.
  • The international stock portion of non-Vanguard funds as provided by Morningstar.*
  • Individual stock holdings classified by Morningstar as non-U.S. stocks.

Other stocks

  • Stock fund assets we are unable to categorize due to insufficient data.

For Vanguard funds and brokerage holdings, prices and shares used to compute your current account value are as of the previous business day. For investments you entered in Outside Investments, prices may be from today's close, especially if you're viewing them after the market close, which is generally 4 p.m., Eastern time.

* When determining fund-level allocations of non-Vanguard funds, which at times may hold small portions (10% or less) of their portfolios in noncore categories on a temporary, short-term basis, such noncore categories may be recategorized. In certain cases, the analysis accounts for these short-term variations by allocating them proportionately to a fund's core investment categories, as determined by the fund's overall type (for example, "Domestic Stock," "International Stock," etc.).

This approach is consistent with Vanguard's philosophy of investing for the long term. In the context of a diversified portfolio, investors should view funds as relatively constant single holdings that serve defined subasset allocation roles, and should base investment decisions on the funds' ongoing appropriateness for those roles—not on minor changes in the underlying portfolios. In some instances, the fund-level allocation results may vary from those of other portfolio analysis tools or channels. However, we believe our results present the truest picture of overall asset allocation and best serve the interests of long-term investors.

Data source information

Morningstar, Inc., provided some of the information in this section.

Vanguard is not responsible for the accuracy of data provided by third parties.

All investing is subject to risk, including the possible loss of principal. Diversification does not protect against a loss in a declining market or ensure a profit. Foreign investing involves additional risks including currency fluctuations and political uncertainty.

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