- Intl. allocation held 100% in taxable account (38% tax bracket)
- Intl. accounting for 45% of total AA
- A desire to tilt small
- Long-term buy/accumulate/hold (15+yrs)
- All held at Vanguard so no purchase fees
Which would you rather own and the reasoning for why:
33.3% VEA (Vanguard MSCI EAFE ETF - .12)
33.3% VSS (FTSE All-World ex-US Small-Cap ETF - .28)
33.3% VWO (Vanguard Emerging Markets ETF - .20)
Besides Mid-Small tilt, this also "tilts" Emerging Mkts in your large cap holdings. It equates to 22/11/33/33 Europe/Pacific/Emerging/Mid-Small.
50% VXUS (Vanguard Total International ETF - .21)
50% VSS (FTSE All-World ex-US Small-Cap ETF - .28)
This is not 50/50 Large/Mid-Small since VXUS contains Mid-Small. If 50/50 is what you want, consider a different mix - like 60/40 VXUS/VSS.
17 16 16 = 49%
13 12 11
06 05 04
Now, since all International is in Taxable, and if you are a stickler to rebalance these allocations, use NEW contributions to avoid selling/buying between them while paying unnecessary taxes.