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

[syrdave]

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]

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]

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

[mikenz]

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]

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.

[EmergDoc]

Welcome to the board. There are very few dumb questions here. Yours wasn't one of them.

[gkaplan]

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?

[mortal]

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]

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]

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?

[stratton]

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