Vanguard Total Inter Index Fund ONLY up .56% YTD; Why????
Vanguard Total Inter Index Fund ONLY up .56% YTD; Why????
Vanguard Total International Stock Index Fund (VGTSX) is only up .56% YTD. My other managed international mutual funds are up around 10% or more YTD.
It's Emerging Market exposure is almost 25%. I'm at a loss to explain why the performance isn't more impressive in 2010.
Any ideas?
TIA,
SyrDave
It's Emerging Market exposure is almost 25%. I'm at a loss to explain why the performance isn't more impressive in 2010.
Any ideas?
TIA,
SyrDave
Europe (50%) is down 4%, Pacific (25%) is up 5%, EM (25%) is up 2.5%. That averages out to about even.
Small Cap (DLS) is up 5%. So a fund with a lot of emerging markets or small caps might be doing well.
How much of it is due to exhange rates? Looks like the Euro is down 6-7% YTD.
Are the managed funds hedged?
Small Cap (DLS) is up 5%. So a fund with a lot of emerging markets or small caps might be doing well.
How much of it is due to exhange rates? Looks like the Euro is down 6-7% YTD.
Are the managed funds hedged?
- White Coat Investor
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Because this particular fund is has overweighted European stocks in much the same way that the target retirement dates overweight US stocks. Granted, the better solution is to use the index funds that comprise the components of the larger funds.gkaplan wrote:If you have the Vanguard Total International Stock Index Fund, why do you need those other international funds?Vanguard Total International Stock Index Fund (VGTSX) is only up .56% YTD. My other managed international mutual funds are up around 10% or more YTD.
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Is this "overweighting" the fund's fault or the index it tracks - MSCI EAFE + Emerging Markets Index?mortal wrote:Because this particular fund is has overweighted European stocks in much the same way that the target retirement dates overweight US stocks. Granted, the better solution is to use the index funds that comprise the components of the larger funds.gkaplan wrote:If you have the Vanguard Total International Stock Index Fund, why do you need those other international funds?Vanguard Total International Stock Index Fund (VGTSX) is only up .56% YTD. My other managed international mutual funds are up around 10% or more YTD.
The is NOT overweighting. It follows an MSCI index.mithrandir wrote:Is this "overweighting" the fund's fault or the index it tracks - MSCI EAFE + Emerging Markets Index?mortal wrote:Because this particular fund is has overweighted European stocks in much the same way that the target retirement dates overweight US stocks. Granted, the better solution is to use the index funds that comprise the components of the larger funds.gkaplan wrote:If you have the Vanguard Total International Stock Index Fund, why do you need those other international funds?Vanguard Total International Stock Index Fund (VGTSX) is only up .56% YTD. My other managed international mutual funds are up around 10% or more YTD.
This is one of the reasons Rick Ferri will break out Europe and Pacific separately. Such as:
30% Europe
30% Asia
20% EM
20% Intl small
This keeps one geogrpahic area from dominating too much. In 1989 Japan was 70% of the EAFE index.
Some people will even break down Pacific because it's 70% Japan. Pacific ex-Japan is 70% Australia.
Current weights are:
50% Europe
25% Pacific
25% EM
Paul