Vanguard - Increasing International Equity %

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bpp
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Re: Vanguard - Increasing International Equity %

Post by bpp »

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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abuss368
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Re: Vanguard - Increasing International Equity %

Post by abuss368 »

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.
John C. Bogle: “Simplicity is the master key to financial success."
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RyeWhiskey
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Re: Vanguard - Increasing International Equity %

Post by RyeWhiskey »

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.
This post was brought to you by Vanguard Total World Stock Index (VTWSX/VT).
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Noobvestor
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Re: Vanguard - Increasing International Equity %

Post by Noobvestor »

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.
http://www.bogleheads.org/forum/viewtop ... 0&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
pascalwager
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Re: Vanguard - Increasing International Equity %

Post by pascalwager »

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.
VT 60% / VFSUX 20% / TIPS 20%
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abuss368
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Re: Vanguard - Increasing International Equity %

Post by abuss368 »

Please keep the responses coming!
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Vanguard - Increasing International Equity %

Post by pascalwager »

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.
VT 60% / VFSUX 20% / TIPS 20%
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ruralavalon
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Re: Vanguard - Increasing International Equity %

Post by ruralavalon »

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?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
riskonoff
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Re: Vanguard - Increasing International Equity %

Post by riskonoff »

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...
staythecourse
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Re: Vanguard - Increasing International Equity %

Post by staythecourse »

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 %

Post by Investing is boring »

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 %

Post by riskonoff »

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.
riskonoff
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Re: Vanguard - Increasing International Equity %

Post by riskonoff »

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.

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...
I am Riskonoff. For those who puke VXUS, I will be buying. Bought today and scale Down GTC bids are in the mkt.

I am a retired futures trader. I retired because I lost interest and could not make money at it any more. Traded for 30 years. Floor and screen. Common sense is what has sustained me. The 50% international never made sense to a dumb floor trader. Everything else from the bogleheads does make sense.

I did it my way.

Good luck!!
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Re: Vanguard - Increasing International Equity %

Post by LadyGeek »

riskonoff - Please check your PMs, which is the link in the upper-right corner of the page. It should look something like this: Private messages [1].

Update: Resolved via PM.
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