[Karen]

It was recommended to me to sell my existing funds in my Roth IRA and buy both FZROX and FZILX. Can someone explain why not just go with FZROX since overall its returns are better? I get the concept of diversification, but it seems like international funds have been lagging behind US total market funds for years. TIA.

[Allen]

They move in cycles.

Buying only what has performed best recently is like driving your car with only the rearview mirror.

[Karma]

I agree! Full in FZROX. Focus on essential diversity.

[Daniel]

I put all mine in FZROX. Times have changed. The top company’s are in so many countries now.

[Christopher]

What if the USA stock market does something like Japan did?

Owning the USA market is great but you could own the some of the whole world just in case.

Plus there are many companies that are outside of the USA that are good to own.

Useful: We opened Roth IRAs with an advisor last year – and I think the fees are too much!

[Shawn]

International markets are better valued and yield more. They are cheaper because they haven’t gone up as much. I prefer international in a taxable account to claim the foreign tax credit.

[Author]

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