International Index Fund Question
International Index Fund Question
I currently have about 20% of my retirement/long term money in the Vanguard Total Stock Market Index Fund in my rollover IRA. Would the Vanguard FTSE All-World ex-US Index Fund be a better option?
This would be the only international fund I have, so I want to be as diversified across the world as I can be with one fund.
This would be the only international fund I have, so I want to be as diversified across the world as I can be with one fund.
Re: International Index Fund Question
These funds are not comparable. One is US stocks. One is everything else. Most people think you should hold both US and international, not one or the other.ku96 wrote:I currently have about 20% of my retirement/long term money in the Vanguard Total Stock Market Index Fund in my rollover IRA. Would the Vanguard FTSE All-World ex-US Index Fund be a better option?
This would be the only international fund I have, so I want to be as diversified across the world as I can be with one fund.
If you want to hold both in one fund, Vanguard has a fund for that but it is more expensive than holding the two separately and it has more international stock than some people want.
I wonder if you think "international" includes both? Not in this case.
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Re: International Index Fund Question
Having both Total Stock and FTSE All-World ex-US (or Total International) would probably be the best option. You would then be globally diversified.ku96 wrote:I currently have about 20% of my retirement/long term money in the Vanguard Total Stock Market Index Fund in my rollover IRA. Would the Vanguard FTSE All-World ex-US Index Fund be a better option?
This would be the only international fund I have, so I want to be as diversified across the world as I can be with one fund.
If you want to be globally diversified in stocks with only one fund, Vanguard's Total World Index (VTWSX) is an option.
Re: International Index Fund Question
ku,ku96 wrote:I currently have about 20% of my retirement/long term money in the Vanguard Total Stock Market Index Fund in my rollover IRA. Would the Vanguard FTSE All-World ex-US Index Fund be a better option?
Your question implies that you don't know how to look under the hood of various investments.
- As such, you shouldn't be picking funds without a plan and asset allocation; and understading how each investment works in an overall portfolio.
- Read through the following link and pick-up a couple of good books - it will be time well invested.
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Re: International Index Fund Question
Compare Fundsku96 wrote:My mistake on my original post. I actually have 20% of my portfolio in the Vanguard Total International Stock Index Fund. I incorrectly typed "Total Stock Market Index Fund". Sorry to anyone that I confused.
Landy |
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Also...brisni wrote:I think the main difference is the FTSE index includes Canada. It is also slightly higher ER (0.4 vs 0.32).
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The FTSE exUS has a 2% fee if you hold <2 months.
FTSE exUS has a ETF version, allowing conversions if you want to do that sort of thing.
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In that case, it is purely personal preference.ku96 wrote:My mistake on my original post. I actually have 20% of my portfolio in the Vanguard Total International Stock Index Fund. I incorrectly typed "Total Stock Market Index Fund". Sorry to anyone that I confused.
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Total International and FTSE All-World ex-US are nearly identical. Flip a coin or go with your personal preference. FTSE All-World ex-US includes Canada -- Total International does not.ku96 wrote:My mistake on my original post. I actually have 20% of my portfolio in the Vanguard Total International Stock Index Fund. I incorrectly typed "Total Stock Market Index Fund". Sorry to anyone that I confused.
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Vanguard has both funds in order to keep investors baffled, confused, and in an eternal state of analysis paralysis. I cannot think of any other reason.
The Bogleheads wiki article may be helpful.
http://www.bogleheads.org/wiki/Compare_ ... onal_Funds
To add one more piece of confusion to the situation:
Vanguard has a list of nine funds they identify as "core" funds here:
https://personal.vanguard.com/us/funds/vanguard/core
Given that Vanguard FTSE All-World ex-US Index Fund (VFWIX) seemingly has the "better," more complete, and more logical index, I wonder VGTSX is the one they continue to designate as a "core" fund?
The Bogleheads wiki article may be helpful.
http://www.bogleheads.org/wiki/Compare_ ... onal_Funds
To add one more piece of confusion to the situation:
Vanguard has a list of nine funds they identify as "core" funds here:
https://personal.vanguard.com/us/funds/vanguard/core
Given that Vanguard FTSE All-World ex-US Index Fund (VFWIX) seemingly has the "better," more complete, and more logical index, I wonder VGTSX is the one they continue to designate as a "core" fund?
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.