Category: International stocks

This article provides updated Telltale charts, including returns up to 2019. It analyzes the relative past performance of value and size factors compared to the total US market, as well as studying international and real estate market segments.
Using Telltale charts can be very informative, truly ‘telling the tale’ of what happened over time to portfolio trajectories, illustrating return to the mean properties or lack thereof.

Vanguard issues annual reports for the firm’s international and global index funds on October 31 of each year.[1] The reports provide information that can highlight some of the underlying conditions affecting a fund’s future capital gains distribution outlook; an indication …

Under the hood – Vanguard international index funds in 2019 Read More »

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Vanguard issues annual reports for the firm’s international and global index funds on October 31 of each year. The reports provide information that can highlight some of the underlying conditions affecting a fund’s future capital gains distribution outlook; an indication …

Under the hood – Vanguard international index funds in 2018 Read More »

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A previous blog article explored income-centric risk and reward definitions, more suitable to retirement than the usual academic definitions. Corresponding quantitative analysis of some simple US portfolios was provided.
This article extends this investigation by taking the perspective of investors located in various developed countries (a form of ‘out of sample’ testing).

This article provides updated Telltale charts, including 2017 returns. It focuses on the relative past performance of value and size factors compared to the total US market, as well as studying international and real estate funds. 
Using Telltale charts can be very informative, truly ‘telling the tale’ of what happened over time to portfolio trajectories, illustrating return to the mean properties, or lack thereof.

Vanguard issues annual reports for the firm’s international and global index funds on October 31 of each year. The reports provide information that can highlight some of the underlying conditions affecting a fund’s future capital gains distribution outlook; an indication …

Under the hood – Vanguard international index funds in 2017 Read More »

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Vanguard and others have put a lot of emphasis on bonds diversification using international bonds in recent years, while the Bogleheads community mostly shrugged. This article studies the effect of such diversification through backtesting techniques, looking at both regular International bonds and Emerging Market bonds. We’ll take a close look by studying monthly returns to better analyze the volatility and correlation properties of various portfolios. Then we’ll perform a similar study about diversification of equities with domestic, global or international real estate funds.

Vanguard manages two funds addressing the International Small-Caps market segment. The Vanguard International Explorer Fund (VINEX) is one of them. It was launched in Nov-96 by a UK investment company (Schroders PLC), then acquired by Vanguard in Mar-02, and it keeps operating as an active fund to this day.
More recently (Apr-09), Vanguard launched the Vanguard FTSE All-World ex-US Small-Cap Index Fund (VFSVX – also known as VSS in ETF form), a passive index fund.
This articles explores the differences between the two funds, as an attempt to help investors decide which one is best suited for them.

This article is the third part of a study looking at global and domestic investing from the perspective of local investors.
In Part 1 and Part 2, we took the position of a local investor in one of 16 countries of interest, and we explored somewhat extreme positions of either investing 100% global or 100% domestic. It is now time to try a more balanced view of things, and study portfolios mixing global and domestic investments. We will notably look at the mitigation this could bring to the countries having fared the worst, but also consequences for countries having fared better. Of course, it is easy to look at such numbers in hindsight and draw hasty conclusions, so let’s keep in mind that nobody could have predicted winners and losers ahead of time.

Many North American investors tend to look carefully at historical returns in the US and in Canada, and draw various conclusions. Occasionally, some references are made to Japan and the UK, and few people look any further. The world changes though. The UK was undoubtedly the world economic leader at the end of the 19th Century, while the US clearly dominates nowadays. Japan was on a roll, had a bigger market capitalization than the US in the 80s, and yet badly faltered since then. The world changes in ways we cannot predict, and it would be naive to assume that several decades from now, the situation will be similar to today’s environment. One thing we can do to get some perspective, is to try to draw some analogies with what happened in a larger sample of countries.
This article focuses on the historical returns from 16 developed countries, looking from the perspective of a local investor, and assuming a strong home country bias to begin with (i.e. solely using domestic stocks and domestic bonds). We will look at more diversified portfolios mixing domestic and global investments in Part 3.