Vanguard Total Inter Index Fund ONLY up .56% YTD; Why????

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syrdave
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Vanguard Total Inter Index Fund ONLY up .56% YTD; Why????

Postby syrdave » Sat May 01, 2010 7:19 pm

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

Bobalude
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Postby Bobalude » Sat May 01, 2010 7:28 pm

The investment powers that be have a vendetta against you.

Look up the top 10 holdings of the fund and do your own research of the companies/sector.

KyleAAA
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Postby KyleAAA » Sat May 01, 2010 7:28 pm

What managed funds are those? Most of the funds I've seen are in the 1-3% range

mikenz
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Postby mikenz » Sat May 01, 2010 7:52 pm

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?

syrdave
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Postby syrdave » Sat May 01, 2010 8:15 pm

OK, I stand corrected.

The 2 managed funds I was referring to, Templeton Growth & Hartford Inter Opportunities, both are up 2 - 3% YTD.

Sorry for the wild goose chase.

As a longtime lurker, so much for my first post to this board.....

Thanks for the replies.

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EmergDoc
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Postby EmergDoc » Sat May 01, 2010 8:24 pm

Welcome to the board. There are very few dumb questions here. Yours wasn't one of them.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

gkaplan
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Postby gkaplan » Sat May 01, 2010 9:08 pm

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.


If you have the Vanguard Total International Stock Index Fund, why do you need those other international funds?
Gordon

mortal
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Postby mortal » Sat May 01, 2010 9:45 pm

gkaplan wrote:
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.


If you have the Vanguard Total International Stock Index Fund, why do you need those other international funds?


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.

syrdave
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Postby syrdave » Sun May 02, 2010 5:03 am

If you have the Vanguard Total International Stock Index Fund, why do you need those other international funds?


I have been ramping up my international exposure.

The Vanguard fund is being used for Roths, the other funds are through my retirement plan at work.

mithrandir
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Postby mithrandir » Sun May 02, 2010 7:01 am

mortal wrote:
gkaplan wrote:
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.


If you have the Vanguard Total International Stock Index Fund, why do you need those other international funds?


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.

Is this "overweighting" the fund's fault or the index it tracks - MSCI EAFE + Emerging Markets Index?

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stratton
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Postby stratton » Sun May 02, 2010 2:18 pm

mithrandir wrote:
mortal wrote:
gkaplan wrote:
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.


If you have the Vanguard Total International Stock Index Fund, why do you need those other international funds?


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.

Is this "overweighting" the fund's fault or the index it tracks - MSCI EAFE + Emerging Markets Index?

The is NOT overweighting. It follows an MSCI index.

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


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