JL Collins Goes Global - And Why That Feels Familiar
1 Mar, 2026
The financial clouds parted the day I picked up the 2016 edition of The Simple Path to Wealth by JL Collins. Living in New Zealand, I knew I wanted to invest in the share market, not property, but I had little clue how to do so. It felt like a lottery, like gambling, but surely there had to be an easier way than relying on my less-than-average stock-picking skills. Finding that book showed me there was.
He fit the final piece into my puzzle. Instead of picking and choosing individual companies, just buy them all in one tidy package: an Exchange Traded Fund (ETF) or index fund - the simple path to wealth.
The Simple Idea That Changed Everything
JL’s core lesson has always been beautifully simple: the stock market as a whole goes up over time because the companies within it collectively grow, innovate, and generate profits. Some companies thrive, and some go broke. Rather than trying to guess which is which, you simply buy the entire share market, both winners and losers, through a low-cost index fund or ETF.
The winners grow and pull the market up with them. The losers fall away, and the next top company takes their place on the index. You automatically own an ever-evolving group of winning businesses. He calls this a “self-cleansing” investment. These funds are a hands-off, low-cost, tax-efficient way to always own the top companies.
He wrote his book for a U.S. audience and never expected the global attention it received. Since 2016, people like me have worked out how to apply his concept of “just buy everything” in our own countries.
For years, JL Collins has been known for one beautifully simple idea: Buy VTSAX and chill.
VTSAX is an American index fund - the Vanguard Total Stock Market Index Fund. VTI is the ETF equivalent. It holds 100% U.S. companies, which do pretty well globally, too.
I was pleasantly surprised to find a similar low-cost, 100% U.S. equities fund here in New Zealand in the form of the Smart US 500 ETF. From that point on, every month without fail, Jonny and I purchased units in this fund. Our investment balance steadily grew. It proved to be The Simple Path to Wealth.
But readers began asking, “JL, what about the rest of the world?” Surely some international companies are doing just as well as U.S. ones?
He has long explained that U.S. companies are so large and globally dominant that U.S. investors could “get away with” owning only VTSAX. It was reasonable for Americans to have a home-country bias because of the sheer size of their economy.
However, he has also always said that for those outside the U.S., while buying a VTSAX-type fund was fine, choosing a Total World Fund (TWF) - currently about 62% U.S. - was perfectly acceptable too.
Personally, I chose a US 500 fund because, at the time, it was outperforming a Total World Fund.
But I kept an eye on it.
I continued reading, learning, and discussing the US 500 vs TWF conversation with peers. My view was simple: Britain once dominated the global economy, and now it doesn’t. I wondered whether the United States would eventually face a similar shift. JL advised that such a dramatic change was unlikely in his lifetime, but younger investors should keep watching.
Why I Made the Shift
Watching U.S. politics evolve over the last decade made me think and act. In 2025, Jonny and I added the rest of the world to our investing mix. On the same day, I moved all our ex-KiwiSaver investments from a US 500 ETF into the Smart Total World ETF. In 2024, we had already shifted our KiwiSaver to the InvestNow Foundation Series Total World KiwiSaver Fund.
We still own all the top U.S. companies - but now we also own thousands of international ones. I instantly slept better at night after reducing our single-country bias.
I wrote about those changes in:
So when JL announced that he had added international stocks to his portfolio, people noticed. It felt like a big deal.
But no need to panic - he remains very confident in America. He had always said that if the need arose to add international exposure, he would. So he did.
Here’s what changed:
He shifted from VTSAX (a mutual fund) to VTI (an ETF)
He added VT, Vanguard’s Total World ETF
JL is more than capable of manually adjusting his allocation between the U.S. and the rest of the world, which is why he now holds two funds. If one grows too large, he can sell some and rebalance.
But how do you decide what percentage should be international? And when is the right time to rebalance?
For me, simplicity won. With one fund that owns the world, I don’t need to second-guess allocations.
He also moved from a mutual fund to an ETF. Don’t get hung up on this in Aotearoa. Their investment structures and tax treatments differ from ours. What matters more is what he is investing in, not how he accesses it.
In Kiwi terms:
Are you buying your scoop of chips wrapped in newspaper or served on a plate?
Same delicious hot chips. Same flavour. Just delivered slightly differently - and the newspaper version (ETF) is usually a touch cheaper.
Here in New Zealand, the simplest and often cheapest way to buy a Total World Fund is via the Smart Total World Fund or the InvestNow Foundation Series Total World Fund.
What caught my attention was his decision to buy the world, not the wrapper he used.
What’s Actually Changed (And What Hasn’t)
Has he abandoned “VTSAX and chill”?
Not exactly.
He still owns roughly 62% U.S. - he’s simply added international exposure. The Total World ETF currently sits around 62% U.S. and 38% international. That split isn’t fixed; it adjusts automatically as global market values change.
Why JL Made the Shift
In his February email, JL explained that his reasoning includes concerns about:
U.S. trade policy
The decline of the U.S. dollar (down around 10% against other currencies last year)
The dollar’s long-term position as the world’s reserve currency
He’s clear this isn’t about chasing returns. It’s about recognising that no country stays on top forever.
This Isn’t a U-Turn
JL has never been anti-international.
In recent interviews, he has often said that U.S. investors can probably get away with owning only U.S. assets, but those living elsewhere may reasonably choose a Total World fund.
For years, his position wasn’t that international investing was wrong - only that it wasn’t strictly necessary for U.S. investors. Both approaches can work.
Now he has broadened his own lens, essentially saying: join me if you like - but you’ll be fine if you don’t.
I’ve Walked a Similar Road
I’ve learned a lot from JL Collins over the years, enough to make up my own mind, which is exactly what he encourages investors to do.
When I started investing, I lacked information, which is partly why I started The Happy Saver. If I were searching for clarity, others probably were too.
I began by buying individual New Zealand companies. When that didn’t go well, I moved to an NZ Top 50 ETF. It felt diversified until I learned about home-country bias.
Reading The Simple Path to Wealth accelerated my understanding. I embraced broad U.S. exposure through the Smart US 500 ETF, and it served us incredibly well for a decade.
Using the Sharesight Share Checker, I looked at how the Smart US 500 ETF would have performed if I had invested $10,000 ten years ago.
The US 500 ETF holds extraordinary companies - global leaders driving innovation and growth. It delivered strong returns for our whānau.
But over the past two years, something shifted.
Yes, the U.S. has incredible companies. But so does the rest of the world.
There are world-class businesses in Europe, Asia, Canada, and emerging markets that don’t appear in a U.S.-only index.
Katie Donegan created this spreadsheet to show the vast array of companies and countries in an all world fund.
After reading the updated 2025 edition of The Simple Path to Wealth, listening to related podcasts, reading Pathfinders, and discussing investing with friends I respect - including Alan and Katie Donegan - I came to my own conclusion.
I moved from being exclusively US 500 to exclusively Total World.
Not because of one year’s returns. Not because of panic. But because my understanding deepened.
Today we invest entirely in:
One globally diversified approach. No guessing which country will win next. We own around 10,000 successful companies worldwide - and if that’s not diversified, I don’t know what is.
What I Think This Really Shows
JL made changes calmly and deliberately. No fuss. No panic. No headline chasing.
He simply acknowledged that broad diversification can be broader still.
And for those of us living in New Zealand, a small country with a small economy, owning the world feels logical.
The Simple Path to Wealth still guides Jonny and me:
Own the world’s share markets
Keep buy, hold, and sell costs very low
Manage our own investments
Stay the course year after year
“VTSAX and chill” hasn’t died - it’s just gone global.
As investors, our behaviour should not be rigidly fixed. Good investors don’t make knee-jerk decisions; they adjust slowly and thoughtfully as their understanding evolves.
If you want to create your own simple path to wealth, do your own research. Keep learning. Adjust slowly, stay diversified, and let time in the market do the heavy lifting.
