Search found 231 matches

by bogledogle87
Wed Jul 15, 2020 10:05 am
Forum: Investing - Theory, News & General
Topic: [Vanguard partners with Infosys for Defined Contribution recordkeeping]
Replies: 260
Views: 16097

Re: Vanguard laying off 1300 employees as part of outsourcing deal with Infosys

... Also, are you going to liquidate all Vanguard funds, or does your discontent only extend so far as to leave Vanguard as your broker? I can't think of a single Vanguard fund that doesn't have an equivalent (or better) replacement elsewhere. And that includes Wellesley. How about VTWAX/VT? I can'...
by bogledogle87
Mon Jul 13, 2020 12:47 pm
Forum: Investing - Theory, News & General
Topic: Why not 100% PSLDX?
Replies: 476
Views: 41776

Re: Why not 100% PSLDX?

Obviously this thread has become quite lengthy, with plenty of great discussion and differing opinions around this risk parity approach. For the novice index investor, would someone like to TLDR the following points as concisely as possible: - Why has this worked so well over the past 10 years? - Se...
by bogledogle87
Sat Jul 04, 2020 6:55 pm
Forum: Investing - Theory, News & General
Topic: What is the percentage breakdown between international stocks and U.S. stocks in a total world stock portfolio?
Replies: 15
Views: 1064

Re: What is the percentage breakdown between international stocks and U.S. stocks in a total world stock portfolio?

It won't be exact because of currency effects, but it will be close. Nisi, can you clarify this point? Do you mean to say that a portfolio of VTI/VXUS that starts at the same market weight as VT will gradually deviate from it due to currency effects? I am not sure I follow. Does there exist some so...
by bogledogle87
Wed Jul 01, 2020 9:25 am
Forum: Investing - Theory, News & General
Topic: Will ex-US ever revert to good performance? Or is it just a high-risk, low-reward investment?
Replies: 358
Views: 19252

Re: Will ex-US ever revert to good performance? Or is it just a high-risk, low-reward investment?

Has International ever outperformed U.S. to the massive extent that U.S. has outperformed International over the last 10 years? Yes. From 2010 to 2019, ex-US stocks underperformed US stocks by an average of 7.15% per year. From 1965 to 1974, ex-US stocks outperformed US stocks by an average of 7.24...
by bogledogle87
Wed Jul 01, 2020 7:23 am
Forum: Investing - Theory, News & General
Topic: Will ex-US ever revert to good performance? Or is it just a high-risk, low-reward investment?
Replies: 358
Views: 19252

Re: Will ex-US ever revert to good performance? Or is it just a high-risk, low-reward investment?

My argument is that the outperformance of US stocks is driven by an advantage in tech megacaps. This advantage seems to be increasing, and these companies are just gaining more power, wealth, and marketshare. Perhaps more importantly: the US as a nation is a world-leader in technology, and its adva...
by bogledogle87
Wed Jul 01, 2020 7:06 am
Forum: Investing - Theory, News & General
Topic: Will ex-US ever revert to good performance? Or is it just a high-risk, low-reward investment?
Replies: 358
Views: 19252

Re: Will ex-US ever revert to good performance? Or is it just a high-risk, low-reward investment?

If the US suffers a significant downturn, most of these ex-US companies VTIAX holds will also lose much value. This is no surprise with an ever globalizing economy. Investors often cite increasing correlation as a reason to forgo certain stocks, or in this case - all other countries, but I believe ...
by bogledogle87
Wed Jul 01, 2020 6:55 am
Forum: Investing - Theory, News & General
Topic: Will ex-US ever revert to good performance? Or is it just a high-risk, low-reward investment?
Replies: 358
Views: 19252

Re: Will ex-US ever revert to good performance? Or is it just a high-risk, low-reward investment?

Has International ever outperformed U.S. to the massive extent that U.S. has outperformed International over the last 10 years? I know that International has outperformed U.S. for periods of time, but my understanding is that the outperformance has been modest at best. If that's the case, why bothe...
by bogledogle87
Sun Jun 21, 2020 5:34 am
Forum: Personal Investments
Topic: VTWAX Total World in Taxable - a mistake?
Replies: 14
Views: 1657

Re: VTWAX Total World in Taxable - a mistake?

You should also take a look at the dividend percentage and the qualified dividend rate because they also play a role in tax efficiency. (QD for Total Stock was 94%, Total International was 65%, and Total World was 84%). Sometimes it is also worthwhile to see how much the options would cost you in d...
by bogledogle87
Sat Jun 20, 2020 9:37 pm
Forum: Personal Investments
Topic: VTWAX Total World in Taxable - a mistake?
Replies: 14
Views: 1657

Re: VTWAX Total World in Taxable - a mistake?

It’s worth noting the opportunity cost in terms of basis points. Last year I believe the missed credit was about 10 bp, plus another 3 bp by holding the two parts separate. In your case about $33. Was this worth the simplicity of one fund In your taxable account? For some the answer may be yes and o...
by bogledogle87
Sat Jun 20, 2020 12:23 pm
Forum: Personal Investments
Topic: International Index Fund Help
Replies: 13
Views: 817

Re: International Index Fund Help

Could someone possibly elaborate on the comment about VT not passing through the foreign tax credit? I am holding VTWAX (the mutual fund of Total World) in taxable and was under the impression that was a decent place for it — if that has changed “significantly,“ I’d appreciate knowing why. Thank yo...
by bogledogle87
Thu Jun 18, 2020 7:05 pm
Forum: Personal Investments
Topic: Ditching International
Replies: 274
Views: 15794

Re: Ditching International

Okay. Thanks. I'm a bit amazed they'd put out projections 10 years into the future again. I'm reminded of that joke about putting 10 economists into a room and asking where the economy will be in 1 year - and, then getting 11 predictions. But, I digress... I think someone here on BH found Vanguard'...
by bogledogle87
Thu Jun 18, 2020 4:13 pm
Forum: Personal Investments
Topic: Ditching International
Replies: 274
Views: 15794

Re: Ditching International

Here is the thing - Nobody has any idea which country or sector will outperform another. As world-renowned Finance professor Kenneth French states time and time again: Realized Return = Expected Return + Unexpected Return. Over the very long term, unexpected return trends toward zero. Over the shor...
by bogledogle87
Thu Jun 18, 2020 3:01 pm
Forum: Personal Investments
Topic: Ditching International
Replies: 274
Views: 15794

Re: Ditching International

Here is the thing - Nobody has any idea which country or sector will outperform another. As world-renowned Finance professor Kenneth French states time and time again: Realized Return = Expected Return + Unexpected Return. Over the very long term, unexpected return trends toward zero. Over the short...
by bogledogle87
Wed Jun 17, 2020 7:04 am
Forum: Personal Investments
Topic: Ditching International
Replies: 274
Views: 15794

Re: Ditching International

This is what i have trouble with. Let's assume there is, fundamentally, something different about the US stock market, US domiciled corporations, and US citizens and that this difference makes US stocks a fundamentally superior investment than elsewhere. Things just simply are this way. Right or wr...
by bogledogle87
Mon Jun 15, 2020 11:44 am
Forum: Personal Investments
Topic: Roth IRA most aggressive fund
Replies: 26
Views: 1967

Re: Roth IRA most aggressive fund

vtsax total stock market fund is a solid choice, what are your thoughts about these. VTWAX world stock, VMGMX madcap growth. VWUSX U.S. growth Do not be misled by the word “growth” in the name of a stock fund. It refers to a market segment defined by a formula, not that will necessarily “grow” more...
by bogledogle87
Sun Jun 07, 2020 5:16 am
Forum: Investing - Theory, News & General
Topic: 60
Replies: 152
Views: 12903

Re: Investing in International Stocks

This comes up a lot and it needs to be corrected each time. A national stock market can increase in size without providing positive return to share holders. New companies can issue shares that go no where, or even down. Existing publicly traded companies can issue new shares at the same or lower pr...
by bogledogle87
Sun Jun 07, 2020 4:46 am
Forum: Investing - Theory, News & General
Topic: 60
Replies: 152
Views: 12903

Re: Investing in International Stocks

You are basically claiming you can predict the chart below into the future. https://i.imgur.com/Bt45BLa.jpg This comes up a lot and it needs to be corrected each time. A national stock market can increase in size without providing positive return to share holders. New companies can issue shares tha...
by bogledogle87
Wed May 27, 2020 2:52 pm
Forum: Personal Investments
Topic: "Converting" Inherited IRA to 401k
Replies: 4
Views: 301

Re: "Converting" Inherited IRA to 401k

I have recommended similar strategies with windfall (taxable) income - use the assets in taxable for living expenses while increasing 401K contributions by a similar amount. I think you should do some modeling to determine your future RMD levels. Many folks here at BH find that they have over-saved...
by bogledogle87
Wed May 27, 2020 2:50 pm
Forum: Personal Investments
Topic: "Converting" Inherited IRA to 401k
Replies: 4
Views: 301

Re: "Converting" Inherited IRA to 401k

This has long been the recommended action plan for inherited retirement accounts when not maximizing all tax-advantaged accounts. You seem to have thought out most of the pros/cons. Additional pros: Several years ago the SCOTUS ruled that inherited retirement accounts do not receive the same asset ...
by bogledogle87
Wed May 27, 2020 1:08 pm
Forum: Personal Investments
Topic: "Converting" Inherited IRA to 401k
Replies: 4
Views: 301

"Converting" Inherited IRA to 401k

I've had an Inherited Traditional IRA since 2009 that I have been collecting RMD's on for 10 years. I know that you cannot rollover into a Traditional or Roth IRA, but think I have come up with a potential workaround. Here is my situation: - Current Value is $100k Invested in VTWAX - Life expectancy...
by bogledogle87
Tue May 26, 2020 10:25 am
Forum: Personal Investments
Topic: Vanguard target date funds outperforming VT/VTWAX - Why?
Replies: 11
Views: 829

Re: Vanguard target date funds outperforming VT/VTWAX - Why?

What were the 3 and 5 year returns 2 years ago. The events of the last 3 months have had a significant effect on the markets. Total World Stock ETF Market Price 1-yr 3-yr 5-yr 10-yr Since inception 06/24/2008 -6.20% 3.91% 4.30% 7.07% 5.08% Target Retirement 2050 1-yr 3-yr 5-yr 10-yr Since inception...
by bogledogle87
Tue May 26, 2020 10:23 am
Forum: Personal Investments
Topic: Vanguard target date funds outperforming VT/VTWAX - Why?
Replies: 11
Views: 829

Re: Vanguard target date funds outperforming VT/VTWAX - Why?

Vanguard increased International exposure in Target Date and Life Strategy funds from 30% to 40% of equities in early 2015 https://obliviousinvestor.com/vanguard-increases-international-allocation-to-target-retirement-and-lifestrategy-funds/ Data before 2015 cannot really be considered in the compar...
by bogledogle87
Mon May 25, 2020 3:38 am
Forum: Investing - Theory, News & General
Topic: Tracking World Index w/ Separate US and International Funds Not Ideal?
Replies: 6
Views: 421

Re: Tracking World Index w/ Separate US and International Funds Not Ideal?

US is currently 57% of the global market cap. If you invest 57% in US and 43% in exUS right now, you'll always track VTWAX without ever rebalancing. I’ve found reinvested dividends can throw this off a little bit. If you reinvest all dividends under this free float approach, you assume every stock ...
by bogledogle87
Mon May 25, 2020 3:31 am
Forum: Investing - Theory, News & General
Topic: Tracking World Index w/ Separate US and International Funds Not Ideal?
Replies: 6
Views: 421

Re: Tracking World Index w/ Separate US and International Funds Not Ideal?

If you are trying to track the weight of the world index with your US and international holdings but don't have access to VTWAX then wouldn't you be buying high and selling low which isn't ideal? I think the misconception here is the idea of selling low. You aren’t selling low inside of an index or...
by bogledogle87
Sat May 23, 2020 6:50 pm
Forum: Personal Investments
Topic: Roth IRA 100% stocks Betterment or VTWAX Vanguard?
Replies: 17
Views: 1254

Re: Rpth IRA 100% stocks Betterment or VTWAX Vanguard?

I was hoping VTWAX would be closer to a 60/40 split without the bonds like their target date funds. Vanguard doesn't auto rebalance in their Roth IRAs which I think is a shame. Not certain how often they should be rebalanced. People recommend lots of different time lines for it. VTWAX is right arou...
by bogledogle87
Sat May 23, 2020 1:46 am
Forum: Personal Investments
Topic: Does fidelity have a total world stock for their HSA?
Replies: 10
Views: 614

Re: Does fidelity have a total world stock for their HSA?

Fidelity also now accepts trading of fractional ETF shares from the app. This along with the partial share reinvestment option dividends basically turns ETF’s into mutual funds, except for the ability to automatically purchase. As a big fan of VTWAX, I use VT in my fidelity HSA and have been very pl...
by bogledogle87
Fri May 22, 2020 9:44 am
Forum: Investing - Theory, News & General
Topic: S&P500 vs World Performance
Replies: 195
Views: 13386

Re: S&P500 vs World Performance

If you are overweight a subset of the market, you are effectively claiming that you can take a chart like this: https://i.imgur.com/Bt45BLa.jpg And at any point in time, predict what the future of that chart will look like. I cannot make a claim like that, so what else can I do except invest at mar...
by bogledogle87
Wed May 20, 2020 7:20 am
Forum: Personal Investments
Topic: Total world vs total us + international
Replies: 23
Views: 1393

Re: Total world vs total us + international

Speaking only for myself: I do invest in international equities, but only for the reason of diversification. There's a Vanguard paper that showed that, if you allocate 20% of your stocks allocation to international stocks, you will gain 84% of the diversification benefit; if you allocate 30% of you...
by bogledogle87
Tue May 19, 2020 12:18 pm
Forum: Personal Investments
Topic: Total world vs total us + international
Replies: 23
Views: 1393

Re: Total world vs total us + international

Speaking only for myself: I do invest in international equities, but only for the reason of diversification. There's a Vanguard paper that showed that, if you allocate 20% of your stocks allocation to international stocks, you will gain 84% of the diversification benefit; if you allocate 30% of you...
by bogledogle87
Tue May 19, 2020 10:42 am
Forum: Investing - Theory, News & General
Topic: Fans of VTWAX, what do you think of REITs?
Replies: 2
Views: 328

Re: Fans of VTWAX, what do you think of REITs?

I believe it is Rick Ferri that recommends the additional 10% REIT's to an index portfolio in order to better reflect the actual market. I see nothing wrong with VNQ & VNQI, or simply REET as a 10% allocation to pair with VTWAX. I've considered it myself but for now have enjoyed the simplicity of ma...
by bogledogle87
Tue May 19, 2020 9:25 am
Forum: Personal Investments
Topic: Total world vs total us + international
Replies: 23
Views: 1393

Re: Total world vs total us + international

Most likely an intentional moderate home bias to mitigate currency risk while maintaining substantial geographic diversification. If we saw total world flip flop to 40% US / 60% International, you might see some investors uncomfortable with the stock allocation in target date funds if it were total ...
by bogledogle87
Tue May 19, 2020 5:18 am
Forum: Personal Investments
Topic: VTSAX or VTWAX over the next 35 years?
Replies: 181
Views: 30464

Re: VTSAX or VTWAX over the next 35 years?

Bumping this to see if there are any other opinions. It depends on whether or not you want to buy the entire haystack or speculate with a specific smaller haystack in pursuit of beating the market, or mitigating a specific risk. Every index can be thought of a haystack to some degree. Some are broa...
by bogledogle87
Mon May 18, 2020 6:39 pm
Forum: Personal Investments
Topic: Why international?
Replies: 636
Views: 42480

Re: Why international?

After reading multiple threads discussing US vs international and, now, this one at 11 pages, I'm really curious. Has anyone been convinced to 'switch sides'? I think I'm only aware of one individual (I think dmcmahon is rethinking his international). As for myself (after reading through some very ...
by bogledogle87
Mon May 18, 2020 6:15 am
Forum: Personal Investments
Topic: Why international?
Replies: 636
Views: 42480

Re: Why international?

This website provides a head-head-to-head comparison of any two ETFs: ETF Comparison Tool VTI vs VXUS It compares cost, performance, portfolio, factors, etc. Look at costs. For VXUS, average spread is double and E.R. is more than double. There you go. Costs matter. Getting error "Webpage not found"...
by bogledogle87
Sun May 17, 2020 2:27 pm
Forum: Personal Investments
Topic: Why international?
Replies: 636
Views: 42480

Re: Why international?

This website provides a head-head-to-head comparison of any two ETFs: ETF Comparison Tool VTI vs VXUS It compares cost, performance, portfolio, factors, etc. Look at costs. For VXUS, average spread is double and E.R. is more than double. There you go. Costs matter. I would argue that a few pennies ...
by bogledogle87
Fri May 15, 2020 10:23 am
Forum: Personal Investments
Topic: Why international?
Replies: 636
Views: 42480

Re: Why international?

Another question is if non-US is to outperform, what country(es) will drive it? All of them at the same time? Not likely. All world is rising while US is falling? Which country then? Will India do it or China? Germany? UK? Such a country should REALLY outperform to move the whole index. If China’s ...
by bogledogle87
Fri May 15, 2020 6:40 am
Forum: Personal Investments
Topic: Why international?
Replies: 636
Views: 42480

Re: Why international?

The United States is not just another country in the global market place. It has unique advantages that make it less likely to suffer catastrophic economic events, better able to handle them if they do, and in a significant geographic/demographic advantage to other developed markets. I always come ...
by bogledogle87
Fri May 15, 2020 6:04 am
Forum: Personal Investments
Topic: Why international?
Replies: 636
Views: 42480

Re: Why international?

There are only 3,530 companies worth buying, the other 7,425 are just an absolute joke. As negative as I am, I don't believe this, and I don't think you do either. Nestle, Unilever, Toyota, Daimler, Samsung, BP, Novartis, SAP, the list goes on and on. How is it that these companies can't hold a can...
by bogledogle87
Thu May 14, 2020 7:02 pm
Forum: Personal Investments
Topic: Why international?
Replies: 636
Views: 42480

Re: Why international?

Deleted
by bogledogle87
Thu May 14, 2020 10:39 am
Forum: Investing - Theory, News & General
Topic: Vanguard Mutual Fund Platform EOL
Replies: 245
Views: 8849

Re: Vanguard Mutual Fund Platform EOL

Can someone ELI5 what is going on here? I've not heard of this prior to stumbling upon this thread. What is the difference between the mutual fund platform and my current brokerage accounts? What is expiring in 2022 and why is it concerning some investors enough to possibly change firms?
by bogledogle87
Thu May 14, 2020 10:06 am
Forum: Personal Investments
Topic: Why international?
Replies: 636
Views: 42480

Re: Why international?

Bogle also said “Don't look for the needle in the haystack. Just buy the haystack!” He didn't say buy the US haystack. Isn't the US market a needle (albeit a large one) in the global haystack? I buy international, at roughly market weight, because I believe in buying the haystack. Did he say Intern...
by bogledogle87
Thu May 14, 2020 9:58 am
Forum: Personal Investments
Topic: Why international?
Replies: 636
Views: 42480

Re: Why international?

International finally had one of its rare days in the sun yesterday, “outperforming” (thats is, declining less than) US by about 1%. So what does International do today? Underperforms US by about 1%, just like the good ol’ broken record that it is. Still holding on with a death grip to my 30% inter...
by bogledogle87
Sun May 10, 2020 5:37 am
Forum: Investing - Theory, News & General
Topic: [Are American markets likely to outperform INTL]
Replies: 237
Views: 16382

Re: [Are American markets likely to outperform INTL]

If the US did outperform INTL for the next decade, as it did last decade, what global market cap would US be by 2030? I’ve not done this for the last and next 10 years, but I’ll share a comment from another thread a few months back.. Since the start of 1986, US has outperformed Ex-US by 2950% to 10...
by bogledogle87
Sun May 10, 2020 5:30 am
Forum: Investing - Theory, News & General
Topic: [Are American markets likely to outperform INTL]
Replies: 237
Views: 16382

Re: [Are American markets likely to outperform INTL]

No one knows, and anyone who pretends to is fooling themselves. Current market prices are forward looking, with expectations of future growth and earnings based on available information priced in. Looking at a recently outperforming country and suggesting it will continue to do so is suggesting it i...
by bogledogle87
Wed May 06, 2020 12:32 pm
Forum: Personal Investments
Topic: Theory: NOW is the Best Time for Total World Stock
Replies: 159
Views: 24589

Re: Theory: NOW is the Best Time for Total World Stock

Thanks. You've certainly put a lot of thought into this. I like or agree with pretty much everything you wrote but I'm wondering about the parts I bolded and underlined above. Would it be possible for currency exchange to be unfavorable to US investors while US global weight is falling? I'm still l...
by bogledogle87
Mon May 04, 2020 2:13 pm
Forum: Personal Investments
Topic: Theory: NOW is the Best Time for Total World Stock
Replies: 159
Views: 24589

Re: Theory: NOW is the Best Time for Total World Stock

Thanks. You've certainly put a lot of thought into this. I like or agree with pretty much everything you wrote but I'm wondering about the parts I bolded and underlined above. Would it be possible for currency exchange to be unfavorable to US investors while US global weight is falling? I'm still l...
by bogledogle87
Mon May 04, 2020 2:00 pm
Forum: Personal Investments
Topic: Theory: NOW is the Best Time for Total World Stock
Replies: 159
Views: 24589

Re: Theory: NOW is the Best Time for Total World Stock

"From 1980s to now, lot of US companies have become global. Also reverse is true. By owning stock in large US companies, you are already being exposed to global markets." My rational exactly, especially true for the large cap companies. But what is the price of access of that exposure - high, low, ...
by bogledogle87
Mon May 04, 2020 8:01 am
Forum: Personal Investments
Topic: Theory: NOW is the Best Time for Total World Stock
Replies: 159
Views: 24589

Re: Theory: NOW is the Best Time for Total World Stock

In a scenario where US is falling well below 50%, is it possible for currency exchange to be unfavorable to US investors during that time? And if so, would you benefit from being Total World during that process as much as you think? You would also be sitting on much more currency risk going forward...
by bogledogle87
Mon Apr 27, 2020 7:03 pm
Forum: Personal Investments
Topic: S&P 500 vs Total Market Index funds
Replies: 67
Views: 5365

Re: S&P 500 vs Total Market Index funds

We can all cherry pick data Vulcan. If you go back, way back, you will see the S&P has outperformed international by several full points a year historically. That has been well documented in prior posts so I won' waste time re documenting it here. I honestly can't see why this is a discussion. It's...
by bogledogle87
Mon Apr 27, 2020 10:59 am
Forum: Personal Investments
Topic: S&P 500 vs Total Market Index funds
Replies: 67
Views: 5365

Re: S&P 500 vs Total Market Index funds

Why would you choose less diversification over more? Pretty sure that would just be recency bias ... might want to avoid that. :sharebeer New young investor - this is for long term investing. If you were to start today, would you use VTSAX or VFIAX as your core fund? VTWAX Honestly, this is the bes...