Bogleheads Home Bogleheads
Investing Advice Inspired by Jack Bogle
 
  WikiWiki    FAQFAQ    SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 

New Vanguard Global Index ETF

 
Post new topic   Reply to topic    Bogleheads Forum Index -> Investing - Theory, News & General
View previous topic :: View next topic  
Author Message
HotRod140



Joined: 15 Apr 2008
Posts: 63

PostPosted: Mon May 19, 2008 5:29 pm    Post subject: New Vanguard Global Index ETF Reply with quote

Hey Guys Does anyone know the date when we may invest in the new Vanguard Global Index Etf. Also does anyone have any thoughts about the fund?
Back to top
View user's profile Send private message
Pangloss



Joined: 04 Mar 2007
Posts: 275
Location: North Carolina

PostPosted: Mon May 19, 2008 6:03 pm    Post subject: wow Reply with quote

I haven't even heard about this fund! What else do you know about it?
Back to top
View user's profile Send private message
Pangloss



Joined: 04 Mar 2007
Posts: 275
Location: North Carolina

PostPosted: Mon May 19, 2008 6:16 pm    Post subject: just found this Reply with quote

http://www.sec.gov/Archives/ed....le485a.txt

"The Fund attempts to track the investment performance of a benchmark index
consisting of common stocks of large- and mid-capitalization companies located
around the world, including developed and emerging markets. The Fund's
investment in the Index will be within the capitalization range of the companies
included in the FTSE All-World Index ($xx million to $xxx billion as of February
29, 2008). The Index includes approximately 2,900 stocks of companies located in
48 countries, including both developed and emerging markets. As of February 29,
2008, the largest markets covered in the Index were the United States, the
United Kingdom, Japan, France, and Germany (which made up approximately 41%, 9%,
9%, 5%, and 4%, respectively, of the Index's market capitalization). The Fund
typically holds xxxx-xxxx stocks in its target Index (covering nearly xx% of the
Index's total market capitalization) and a representative sample of the
remaining stocks."

Very nice.
Back to top
View user's profile Send private message
DaveTH



Joined: 05 Apr 2007
Posts: 2415

PostPosted: Mon May 19, 2008 6:44 pm    Post subject: Reply with quote

The most recent prospectus is dated June 17, 2008 so I suspect that it will launch close to that date:

http://www.secinfo.com/dSeJx.t11j.htm

BTW, they have changed the name to the Vanguard Total World Stock Index (fund/ETF)
Back to top
View user's profile Send private message
shawcroft



Joined: 24 Feb 2008
Posts: 98

PostPosted: Mon May 19, 2008 7:37 pm    Post subject: new global index fund Reply with quote

I must admit to be intrigued by this concept and offering......I will await erudite commentary regarding its "fit" within the core fund strategies.
Shawcroft
Back to top
View user's profile Send private message
Bob



Joined: 26 Feb 2007
Posts: 55

PostPosted: Mon May 19, 2008 7:48 pm    Post subject: Reply with quote

If I read the prospectus correctly, the expected ER of 0.45% seems expensive compared to what one would pay (overall) buying the separate US, FTSE ex US, and Emerging Markets ETFs.

Is this right? If so, why would one want to go this way versus buying the separate funds that average out at about a 0.2 or less ER?
Back to top
View user's profile Send private message
HotRod140



Joined: 15 Apr 2008
Posts: 63

PostPosted: Mon May 19, 2008 7:55 pm    Post subject: new Vanguard Global Index Etf Reply with quote

You know what Bob, what you say makes sense. Does any of the veteran Bogleheads agree with Bob's Point?
Back to top
View user's profile Send private message
Sphinx



Joined: 29 Aug 2007
Posts: 164

PostPosted: Mon May 19, 2008 8:23 pm    Post subject: Reply with quote

Bob wrote:
If I read the prospectus correctly, the expected ER of 0.45% seems expensive compared to what one would pay (overall) buying the separate US, FTSE ex US, and Emerging Markets ETFs.

Is this right? If so, why would one want to go this way versus buying the separate funds that average out at about a 0.2 or less ER?


Close. The mutual fund will have an expense ratio of 0.45% and a purchase fee of .15%. The ETF will have an expense ratio of 0.25%.

I'm thinking of buying the mutual fund in my taxable account this June. It has no small-cap exposure, but I'm attracted to a fund that never needs to be rebalanced between domestic and international.

Idea
Back to top
View user's profile Send private message
MossySF



Joined: 19 Apr 2007
Posts: 908

PostPosted: Mon May 19, 2008 10:26 pm    Post subject: Reply with quote

Sphinx wrote:

I'm thinking of buying the mutual fund in my taxable account this June. It has no small-cap exposure, but I'm attracted to a fund that never needs to be rebalanced between domestic and international.
Idea


If you buy 2 different funds/etfs at the domestic / international cap weight %, you should never have to rebalance eitherr since growth / decrease would match the same percentage in a global fund.

Unless the US invades some countries overseas (or vice versa) and 2 stock markets get combined ... in that case, you'd have to rebalance.
_________________
personalbizfinance.com
Back to top
View user's profile Send private message
Newboglehead



Joined: 04 May 2008
Posts: 135

PostPosted: Mon Jun 02, 2008 5:36 pm    Post subject: Reply with quote

Coincidentally, Chharles Ellis was a guest on Consuelo Mack's investment show seen on PBS stations in the New York area, and when asked what would be the one single must-have investment he'd recommend, his reply was a global equity index fund.
Back to top
View user's profile Send private message Send e-mail
yobria



Joined: 19 Feb 2007
Posts: 1759
Location: SF CA USA

PostPosted: Tue Jun 03, 2008 11:26 am    Post subject: Reply with quote

Hmm I think I'll keep my US and foreign stock investments separate. Allows some bubble proofing, and would I feel comfortable if, say, EM becomes a greater share of my investments than my US allocation? When you invest in a foreign company, you are quite literally putting your savings in an envelope and mailing it to that country, hoping to get it back someday. Of course you probably will, if that country doesn't decide to hang on to it.

Nick
Back to top
View user's profile Send private message Visit poster's website
OptionAl



Joined: 26 Mar 2008
Posts: 391

PostPosted: Tue Jun 03, 2008 11:36 am    Post subject: Reply with quote

No small cap, not so good.
Back to top
View user's profile Send private message
mpt follower



Joined: 27 Apr 2007
Posts: 367

PostPosted: Tue Jun 03, 2008 11:44 am    Post subject: Nick Reply with quote

Nick, please forgive me for saying that your comments are extremely narrow minded. I must tell you that there is a world outside the USA and that in some aspects that world is doing better than the USA. Have you been to Europe or Asia lately? Trust me, in less time than you think you will be forced to change your opinion, otherwise you run the risk of being stuck at a low return on your money. The growth is shifting somewhere else, not unlike what happened in the USA 30-40-50 years ago.
Erwin
Back to top
View user's profile Send private message
stan1



Joined: 08 Oct 2007
Posts: 813

PostPosted: Tue Jun 03, 2008 12:21 pm    Post subject: Reply with quote

I don't like the fact that the fund is going to use sampling. It is not going to hold most of the ~2800 companies in the index. The minimum percentage is shown as an XX in the SEC prospectus. The new fund could hold under 2000 companies. We have seen that iShares ETFs such as EEM have underperformed Vanguard counterparts like VWO partly because of sampling error.

Holdings:
Total Stock Market -- 3521 companies
FTSE All World Ex US -- 2204 companies
====== 7725 companies

Why would I chose to go with something that holds 1/3 or possibly even 1/4 the number of companies? It's not sufficiently diversified, and to me the sampling risk is unacceptable and can be mitigated by using other implementation choices.

Second reason I'm not planning to use it is that I think there is too much currency risk in a single fund approach. Currency fluctuations have high potential to generate bubbles (witness Yen, Euro, and Dollar over the past 25 years). I don't want to be buying high and selling low. I'd rather rebalance between asset classes where I am selling high and buying low.
Back to top
View user's profile Send private message
edge



Joined: 19 Feb 2007
Posts: 923
Location: Great Falls VA

PostPosted: Tue Jun 03, 2008 12:52 pm    Post subject: Reply with quote

Vanguard has typically held the largest number of holdings in their sampled products. I do not see why this would be any different.
Back to top
View user's profile Send private message
ken250



Joined: 26 Feb 2007
Posts: 1894
Location: US-101

PostPosted: Tue Jun 03, 2008 12:59 pm    Post subject: Reply with quote

Now investors can buy high globally in just a single stock fund.
Back to top
View user's profile Send private message
edge



Joined: 19 Feb 2007
Posts: 923
Location: Great Falls VA

PostPosted: Tue Jun 03, 2008 1:55 pm    Post subject: Reply with quote

FUD

ken250 wrote:
Now investors can buy high globally in just a single stock fund.
Back to top
View user's profile Send private message
Display posts from previous:   
Post new topic   Reply to topic    Bogleheads Forum Index -> Investing - Theory, News & General All times are GMT - 5 Hours
Page 1 of 1

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum


Powered by phpBB © 2001, 2005 phpBB Group