You've opened a brokerage account. You've got some money to invest. Now comes the question everyone gets paralyzed by: what do I actually buy? The good news is that this is one of the most well-studied questions in personal finance — and the answer is surprisingly simple. You don't need a financial advisor. You don't need exotic investments. You need two things: a handful of low-cost ETFs and a sensible allocation between them.
This page walks you through a proven, Dad-approved framework: 70% U.S. stocks, 30% international stocks. We'll look at exactly which funds to use from Vanguard, Fidelity, and Schwab — and explain why the mix between domestic and international is more important than most people realize.
First: Why ETFs?
An ETF — Exchange-Traded Fund — is a basket of hundreds or thousands of stocks that you buy as a single investment, like a stock. When you buy a total market ETF, you're instantly invested in the entire U.S. economy: Apple, Microsoft, every small startup, every regional bank, all at once. There's no stock-picking, no guessing, no drama.
Study after study shows that over 10–20 year periods, passive index ETFs outperform the majority of actively managed funds — after accounting for fees. The math is simple: lower fees mean more of the market's return stays in your pocket. The best ETFs from Vanguard, Fidelity, and Schwab charge as little as 0.00% to 0.03% per year. Compare that to actively managed funds that often charge 0.5% to 1.5%.
The Core Mix: 70% U.S. / 30% International
The most widely recommended starting point for a long-term growth portfolio is a split between U.S. stocks and international stocks. The 70/30 split used here gives you heavy exposure to the world's largest economy while ensuring a meaningful portion of your portfolio benefits from growth in Europe, Asia, and emerging markets.
Why 70/30 specifically? The U.S. represents roughly 60–65% of total global market capitalization, so 70% U.S. gives you a slight home-country tilt — which is common and sensible. The 30% international component ensures you're not entirely dependent on the performance of a single country's economy.
"In 2025, international stocks returned 34.5% while the S&P 500 returned 16.4%. In other years, the U.S. blows international out of the water. Nobody knows which will win in any given year — which is exactly why you hold both."
Why International Diversification Matters
For most of the 2010s, U.S. stocks dominated international markets by a wide margin. It became fashionable to question whether you needed international exposure at all. Then 2025 happened — and international stocks dramatically outperformed. This is the nature of markets: leadership rotates, and nobody rings a bell when it changes.
Here's why international diversification is a permanent part of a smart portfolio:
When the U.S. dollar weakens, international stocks often rise in dollar terms. When one economy faces a recession, others may be booming. Owning international stocks doesn't just add risk — it can actually reduce your portfolio's overall volatility over time, because these markets don't all move in lockstep.
The Funds: Pick Your Brokerage
The beautiful thing about this strategy is that all three of the major discount brokerages — Vanguard, Fidelity, and Schwab — offer excellent, nearly identical ETFs for each slice of the portfolio. You only need one U.S. fund and one international fund. Here's what to buy at each platform:
* FZROX and FZILX are Fidelity-proprietary funds and can only be held in a Fidelity account. They cannot be transferred to another brokerage. If you think you might switch brokerages later, consider FSKAX (0.015%) and FTIHX (0.06%) instead — these are standard mutual funds or use ITOT/IXUS ETFs on the Fidelity platform.
Side-by-Side Fund Comparison
All six funds in one table. Any row is a legitimate choice. Pick the platform you're already using — the differences in fees are negligible compared to the benefit of just investing.
| Ticker | Brokerage | Fund Name | Type | Expense Ratio | Allocation Role |
|---|---|---|---|---|---|
| 🇺🇸 U.S. Stock Funds — 70% of Portfolio | |||||
| VTI | Vanguard | Total Stock Market ETF | ETF | 0.03% | 70% U.S. |
| FZROX | Fidelity | ZERO Total Market Index | Mutual Fund* | 0.00% | 70% U.S. |
| SCHB | Schwab | U.S. Broad Market ETF | ETF | 0.03% | 70% U.S. |
| 🌍 International Funds — 30% of Portfolio | |||||
| VXUS | Vanguard | Total International Stock ETF | ETF | 0.05% | 30% Intl |
| FZILX | Fidelity | ZERO International Index | Mutual Fund* | 0.00% | 30% Intl |
| SCHF | Schwab | International Equity ETF | ETF | 0.06% | 30% Intl |
Portfolio Builder: See Your Dollar Amounts
Enter your investment amount and choose your brokerage to see exactly how many dollars go where.
One Size Doesn't Fit All: Adjusting for Your Age
The 70/30 U.S./international split is about the equity (stock) side of your portfolio. As you get older, you'll gradually shift some of that equity into bonds for stability. But within the equity portion, the U.S./international split remains roughly constant. Here's a general framework by life stage:
Within stocks: 70% US / 30% Intl
Within stocks: 70% US / 30% Intl
Within stocks: 70% US / 30% Intl
Rebalancing: The One Habit You Need
Over time, markets will shift your allocation. If U.S. stocks have a monster year, your portfolio might drift to 80% U.S. / 20% international — pulling you away from your target. Rebalancing means selling a bit of the winner and buying a bit of the laggard to return to your target mix. Do this once a year, not more.
Check your allocation once per year — ideally on a fixed date like January 1st or your birthday. If either allocation has drifted more than 5 percentage points from your target, rebalance. Otherwise, leave it alone. Tinkering too often is how people get into trouble.
"Two funds. Low fees. Automatic contributions. Rebalance once a year. That's the whole strategy. It sounds too simple to work, but it beats almost every more complicated approach over a 20-year horizon. The enemy of a good plan is the search for a perfect one."