Vanguard - Increasing International Equity %

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Re: Vanguard - Increasing International Equity %

Postby bpp » Wed Jun 19, 2013 4:32 am

nisiprius wrote:It would be interesting to know more about the investors who have put $3 billion total into Total World.


I haven't put quite that much into it :wink:, but it is my biggest single holding.
I use a combination of Total World and domestic stocks to get to 50/50 domestic/foreign.
It's a nice, comprehensive, simple fund.
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Re: Vanguard - Increasing International Equity %

Postby abuss368 » Wed Jun 19, 2013 3:41 pm

Now that I have read all the responses, I am beginning to wonder if I should start another thread inquiring who allocates 50% US and 50% International.

Excellent and very interesting responses.
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Re: Vanguard - Increasing International Equity %

Postby RyeWhiskey » Wed Jun 19, 2013 4:00 pm

Bogleheads taught me that simplicity is always best and never try to out-guess the market; hence my 50/50 split between international and domestic. It can't get any simpler than that and I never worry about whether or not I'm over or under-weighted as this is close enough to the actual weighting. Re-balancing is easy and should I pass away the person who takes over can understand what's happening with no difficult problems.

I would like Vanguard to release a total world market fund which encompasses TSM, TISM, TBM, and TIBM - all at equal weights of 25% apiece. It would be the perfect fund in my mind.
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Re: Vanguard - Increasing International Equity %

Postby Noobvestor » Wed Jun 19, 2013 9:46 pm

abuss368 wrote:Now that I have read all the responses, I am beginning to wonder if I should start another thread inquiring who allocates 50% US and 50% International.

Excellent and very interesting responses.


viewtopic.php?f=10&t=103617

Most are 20-40 - some 40-50. I say VT (i.e. market weights) or 50/50 as a good starting point, tilts as needed/desired.
"In the absence of clarity, diversification is the only logical strategy" -= Larry Swedroe
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Re: Vanguard - Increasing International Equity %

Postby pascalwager » Wed Jun 19, 2013 10:22 pm

Bogleheads taught me that simplicity is always best and never try to out-guess the market; hence my 50/50 split between international and domestic. It can't get any simpler than that and I never worry about whether or not I'm over or under-weighted as this is close enough to the actual weighting. Re-balancing is easy and should I pass away the person who takes over can understand what's happening with no difficult problems.


If you want to follow total market even more closely, but with more diversified funds, you can initially buy TSM and TISM using the current proportions (US/intl) for VG Total World Stock (TWS), and just let it ride for years. When adding to or withdrawing from, just do it at current TWS proportions.
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Re: Vanguard - Increasing International Equity %

Postby abuss368 » Tue Jun 25, 2013 11:59 pm

Please keep the responses coming!
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Re: Vanguard - Increasing International Equity %

Postby pascalwager » Thu Jun 27, 2013 3:53 am

In the 2012 version of their paper on int'l investing, VG states that after 2010 adding any int'l to a domestic portfolio would increase, not decrease, volatility. So I can't see them going above the current 30% int'l anytime soon.
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Re: Vanguard - Increasing International Equity %

Postby ruralavalon » Thu Jun 27, 2013 1:30 pm

abuss368 wrote:Now that I have read all the responses, I am beginning to wonder if I should start another thread inquiring who allocates 50% US and 50% International.


According to this poll, half of bogleheads responding hold international at 30% or less, only 08% allocate 51% or more to international, 2013 poll, What is your equity allocation to international?
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Re: Vanguard - Increasing International Equity %

Postby riskonoff » Thu Jun 27, 2013 11:42 pm

I have less than 10% of my equity allocation to int'l. I love Vanguard and have been a loyal customer for 25 years. However, I don't listen to everything they say. In 2006/07 I had a windfall of sorts and the vanguard financial planner said to put all of it in equities. I ignored his advice knowing full well we were at all time highs. It just felt too risky and CD's were yielding over 5%....Not listening to Vanguard in '06/'07 allowed me to buy laddered CD's over 5% and be a scale down buyer of VTI in '08/'09.

One of my favorite songs is "I did it my way"......I may slowly bump up my int'l to 20% but cannot see myself going beyond that...
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Re: Vanguard - Increasing International Equity %

Postby staythecourse » Thu Jun 27, 2013 11:59 pm

riskonoff wrote:I have less than 10% of my equity allocation to int'l. I love Vanguard and have been a loyal customer for 25 years. However, I don't listen to everything they say. In 2006/07 I had a windfall of sorts and the vanguard financial planner said to put all of it in equities. I ignored his advice knowing full well we were at all time highs. It just felt too risky and CD's were yielding over 5%....Not listening to Vanguard in '06/'07 allowed me to buy laddered CD's over 5% and be a scale down buyer of VTI in '08/'09.


If you told the Vanguard CFP that you have a long time horizon I don't see it as wrong to rec. more equities. BTW, don't have the data In front of me, my would guess you would have made out well just following their advice and just reinvesting dividends even now and more looking 10+ years.

Good luck.
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Re: Vanguard - Increasing International Equity %

Postby Investing is boring » Fri Jun 28, 2013 9:10 am

I am a 50/50 guy. For all of 2013 all new funds have either gone to bonds or international equities. Caused by the run-up in US equities.
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Re: Vanguard - Increasing International Equity %

Postby riskonoff » Fri Jun 28, 2013 10:21 pm

staythecourse wrote:
riskonoff wrote:I have less than 10% of my equity allocation to int'l. I love Vanguard and have been a loyal customer for 25 years. However, I don't listen to everything they say. In 2006/07 I had a windfall of sorts and the vanguard financial planner said to put all of it in equities. I ignored his advice knowing full well we were at all time highs. It just felt too risky and CD's were yielding over 5%....Not listening to Vanguard in '06/'07 allowed me to buy laddered CD's over 5% and be a scale down buyer of VTI in '08/'09.


If you told the Vanguard CFP that you have a long time horizon I don't see it as wrong to rec. more equities. BTW, don't have the data In front of me, my would guess you would have made out well just following their advice and just reinvesting dividends even now and more looking 10+ years.

Good luck.

I think I was lucky and I have fared much better than if I listened to the vanguard cfp. their advice is cookie cutter...which is fine. however, to put a large lump sum of cash in at the mkt highs did not feel right. as a trader I have learned to wait for pullbacks. when the pull back started in 2008 I never envisioned that it would result in a complete meltdown. I was a scaled down GTC buyer of VTI from 62 down to 38. I felt like cancelling the orders when each level was hit but I unfortunately did not.

I am so thankful that I did not listen the vanguard guy because I have no idea how I would have reacted in late '08/'09. At the time I was a vanguard guy because low cost and I really did not understand what stay the course means (although I was stay the course), Also, there is a big difference when the vanguard guy tells u to put everything in equities and your loss is in the thousands of dollars. If I listed to the vanguard guy it would have been million plus in losses. I was not prepared that.

Right now I see international as similar return and more risk. There are very smart people on this Forum that would say I have no idea what I am talking about. I understand that. However, I always take actions that ensure that I will stay the course.
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