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:
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: