Beyond the S&P 500: Why My Portfolio is Shifting to a Multi-polar World

The markets have rallied strongly since the temporary ceasefire in the Middle East.

From being down by 16% in 1Q 2026, my US portfolio is now less than 4% in the red a fortnight later. On the other end, my SG portfolio continues its amazing run and is fast approaching a 14% return.

It’s at this moment a thought emerged: Should I diversify my portfolio further?

It isn’t the first time I’ve had such thoughts.

Foraying into the US market in 2017 was a result of that, and while I also ventured into the HK market in 2018, I eventually realised I was spreading myself too thin.

When I rebooted my portfolio in 2020, I settled on a 60/40 Income/Growth allocation, where income is anchored by my SG holdings (70%) and growth is driven by my US picks (30%).

For the past six years, this strategy has way exceeded my expectations. My latest XIRR of 12.6% sits comfortably above my original goal of 6%, and stretched goal of 10%.

However, with the world order shifting from US-centric globalisation toward a Multi-polar World, it’s time to tune the strategy.

If the future isn’t just about Wall Street, then my portfolio shouldn’t be either.

But with my plate already full monitoring individual stocks in Singapore and the US, I’m reluctant to start from scratch searching for the next “star” in Europe or North Asia.

I’ve learnt from my 2018 HK experience: spreading focus too thin is a recipe for underperformance.

The Solution: Outsourcing the Complexity

Just as I consolidated most of my individual REITs into Amova-STC AREIT ETF (CFA) to simplify my life, I’ve decided my international exposure will be handled the “Simpleton Way.” I’m hiring Vanguard to do the heavy lifting.

I’m skipping the popular Irish-domiciled Vanguard FTSE All-World UCITS ETF (VWRA).

While many prefer it for the 15% withholding tax on US dividends, over 60% of VWRA is actually US stocks. Given that I already pick my own US growth names, buying VWRA would lead to massive overlap.

Instead, I am going with the Vanguard Total International Stock Index Fund ETF (VXUS). VXUS is essentially the “everything else” fund—all the robust businesses outside the US.

VXUS: Massive Diversification, Low Cost, Growing Dividends

VXUS is a masterpiece of diversification. It holds more than 8,700 stocks across 47 countries, with an expense ratio of just 0.05% (~4 times lower than VWRA).

While it’s subjected to the 30% US Dividend Withholding Tax, a 2.1% yield (after tax) isn’t too shabby.

If it can continue to grow its dividends by more than 11% annually, my cost yield will double in less than seven years.

The key reason that VXUS suits me though is I hold none of its top holdings. It provides immediate exposure to global titans like TSMC, Samsung, Tencent and HSBC.

Record 2025 Returns: Am I Too Late?

It’s always there; it’s just that you didn’t search for it.

Discovering VXUS while exploring a new idea felt like a receiving a gift.

However, when I realised VXUS returned a whopping 32% last year, my adrenaline rush drained immediately. Damn, why didn’t this idea hit me last year?

But being “gutted” wasn’t a bad thing. It forced me to look at the math rather than the FOMO.

Despite the massive gain, VXUS is still trading at a reasonable TTM P/E of ~15.5x. This is actually a discount compared to its 3-year average of 16.8x.

In comparison:

• VWRA (All-World): ~19.1x P/E
• VOO (S&P 500): ~26.8x P/E (massive premium)

Not only is VXUS cheaper than the other global indices, it represents the strategic “value” play of a shifting world order.

For the last decade, global capital has mostly flowed into one bucket: the US. Even with that headwind, VXUS still delivered a respectable long-term annualised return of 8.8%.

If the Multi-polar World thesis comes true, we will be looking at a potential higher return due to fundamental growth from new regional trade corridors, and valuation rerating as global capital returns to these ignored markets.

Building the Position: The First Move

With the clarity, I’ve decided to start building my VXUS position over the next three years. The plan is to reach an 8-10% portfolio allocation by age 55, when I gain access to my CPF-OA for the bulk of the deployment.

Once complete, my allocation will look like this:

• SG Portfolio (Income Anchor): 70%
• US Portfolio (Growth Anchor): 20%
• VXUS (Future/Global Anchor): 10%

To kickstart the process, I funded my first move this Tuesday by divesting three smaller positions in my US portfolio: Novo Nordisk (NVO), SentinelOne (S), and Zscaler (ZS).

• NVO: Moving from “Active” to “Passive.” Since it’s already a top holding in VXUS, I still own the business but without the need to monitor the GLP-1 headlines anymore.
  
• S & ZS: Cutting speculative plays. I still believe cybersecurity is a fundamental necessity in an AI-driven world, but I’ve grown weary of the Stock-Based Compensation (SBC) drag. While these companies are growing revenue, the ever increasing dilution is a turn-off.

The World is Shifting, So Am I

This shift isn’t just about diversification; it’s about mental bandwidth.

I still enjoy the process of analysing companies and getting a thesis right, but I don’t want to be a full-time analyst.

A strategic mix of individual stocks and ETFs satisfies both my need for a mental challenge and a good night’s sleep—at least for the moment.

This shift isn’t the first, and it certainly won’t be the last.

As the world becomes multi-polar and I grow older, my portfolio will simply continue to evolve alongside it.