We’re often told to choose either VT or VTI (or VOO), and for long-term indexing, either one generally delivers solid returns.
But I’m wondering, does it make sense in a broad sense to favor VT during periods when the DXY (U.S. dollar index) is declining, and VTI when the DXY is rising?
The idea being that when foreign currencies are strengthening against the USD, their gains get amplified in USD terms (benefiting VT), and when the USD is strong, U.S.-only exposure (VTI) avoids the currency headwind.
I know this assumes being able to time DXY, which I'm sure I wouldn't be able to do. But would love to hear other perspectives.