louis c wrote:Thanks so much to everyone for the feedback. I will adjust EM from 19% to 23% of foreign stocks and downward adjust Foreign REITs from 19% to 15%.
Remember that VEIEX is large-cap EM. If you want some small-cap EM you will need something like EWX or DGS (I own both) or you will need to use a small-cap foreign fund that has EM such as VSS (I own it). DLS does not have any EM as far as I know.
Good completion for the TSP international fund would be VSS plus VWO/VEIEX.
I'm trying to figure out how 3% of 30% was 19%.
Thanks for the advice on breaking out international further.
On a somewhat related note, Rick Ferri recommends adjusting the EAFE index to make it more equal weighted between Europe and Asia. EAFE is not equally weighted between Europe and Asia, and since the TSP mimics the EAFE, I should add Asia separately to adjust accordingly. Also, Canada is excluded from EAFE. Any suggestions on that?
Regarding the percentages (3% of 30% was 19%), if stated as percentages within the 30% allocation to foreign stocks, the weightings (after adjusting for more EM coverage) would be:
Foreign Developed 38%
Small Cap Value 24%
Foreign REIT 15%
This totals 100% of the international stock allocation. Emerging was 19% and Foreign REIT was 19% before adjusting for more EM.
The percentages on my OP reflect each sub-allocation as a percentage of the whole portfolio.