How much do you allocate to international equity?

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Ralph Furley
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Re: How much do you allocate to international equity?

Post by Ralph Furley »

I'm somewhere between 15% and 20% of total portfolio with an 80/20 AA. One seems too high and one seems too low...so it probably doesn't matter.
dru808
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Re: How much do you allocate to international equity?

Post by dru808 »

30% ish, had zero but wanted to insure.

Europacific growth is a pretty good fund despite the expense, my wife hold europacific in her 401k.
Last edited by dru808 on Tue Oct 20, 2020 9:33 pm, edited 1 time in total.
65% US equity | 25% ex US equity | 10% US long bond index
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Chrono Triggered
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Re: How much do you allocate to international equity?

Post by Chrono Triggered »

50%. 25% VSS, 25% VXUS/IXUS.
goldendad
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Re: How much do you allocate to international equity?

Post by goldendad »

About 8% with no plans to increase it. The S&P500 have plenty of international exposure (IMHO). I am 64 yo with 80% in stocks - mostly VTI and SPY ETFs. I am retired with enough pension income to never touch my investments.
keystone
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Re: How much do you allocate to international equity?

Post by keystone »

Between 30 and 35% of my equities are in international. For many years I was at 20%, but I've increased my international allocation over the years.

There is a popular thread advocating for putting all of one's stock allocation in the Vanguard Total World Stock Index and I think the OP made some very compelling arguments. I'm not quite ready to make that leap just yet, but I am headed in that direction. The thread can be found here:

viewtopic.php?f=1&t=272909
Mario2222
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Re: How much do you allocate to international equity?

Post by Mario2222 »

I own VTWAX in my Roth IRA
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grabiner
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Re: How much do you allocate to international equity?

Post by grabiner »

50% of my equity holding (currently 44% of my total portfolio) is international. The reason is that I overweight emerging markets and international small-cap because they should have the least correlation with the rest of my portfolio. (Yes, they add risk as well; my 88%-stock portfolio has the risk of 100% stock, and lost more than the market in March because I overweight value as well.)

I never recommend that anyone match my portfolio. If a portfolio like mine is right for you, then you know enough to ignore that advice.
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nix4me
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Re: How much do you allocate to international equity?

Post by nix4me »

zero %
rockstar
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Re: How much do you allocate to international equity?

Post by rockstar »

Zero.

My international exposures comes from US companies that do business internationally.
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Gort
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Re: How much do you allocate to international equity?

Post by Gort »

25% of equities in international (VTIAX).
dru808
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Re: How much do you allocate to international equity?

Post by dru808 »

MotoTrojan wrote: Tue Oct 20, 2020 6:17 pm 35% all in small-value (25% FNDC, 10% IVAL).
Is there a reason you exclude emerging markets?
65% US equity | 25% ex US equity | 10% US long bond index
Rlew
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Re: How much do you allocate to international equity?

Post by Rlew »

Market cap weighting. I base this off the US/ex-US percentage of VTWAX
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alexp
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Re: How much do you allocate to international equity?

Post by alexp »

Between 10-20%.
invest4
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Re: How much do you allocate to international equity?

Post by invest4 »

~20% VXUS.

In the past I have had higher and with tilting to small caps, etc. I have abandoned all that mess for simplicity and settled on 20% in single ETF based upon Vanguard study / recommendations and other which I currently plan to maintain for the duration.
MotoTrojan
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Re: How much do you allocate to international equity?

Post by MotoTrojan »

dru808 wrote: Wed Oct 21, 2020 10:09 pm
MotoTrojan wrote: Tue Oct 20, 2020 6:17 pm 35% all in small-value (25% FNDC, 10% IVAL).
Is there a reason you exclude emerging markets?
I don’t feel a compelling reason to overweight it relative to ex-US and if I held an independent fund at weight it’s 7% allocation just doesn’t seem worth it. I feel just small-value developed is more efficient (trading/fund expenses), simpler, and plenty diverse.

If there was a single fund that achieved small-value ex-US exposure I may use it but I’m not dying to invest in Russia.

FNDC does hold some exposure in Korea and HK too which some indices consider EM.
trigger08
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Re: How much do you allocate to international equity?

Post by trigger08 »

All right I'll play too: I aim for International to be 35-40% of equities, and within that International category I then tilt 25-30% to small-caps in the hope that on average they will be less correlated with the US.
Bayliss
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Re: How much do you allocate to international equity?

Post by Bayliss »

20% is international. 10% is VEA and 10% is VWO.
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Blueberry2009
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Re: How much do you allocate to international equity?

Post by Blueberry2009 »

Thanks for the input y'all. I will definetly do additional study and read the suggestion by Nisiprius and others. I had noticed Vanguard target funds have gone up to 40% of equity in international so I studied target funds from other companies. They seem to vary from around 30% to 40% of equity in international. I haven't researched this a lot but I had read an article in my Kiplingers magazine a couple years ago about the fact that international just hasn't done as well as domestic over the past 10 years or so I think it was. I do have concerns about the future of the U.S. though with the debt continuing to rise. Maybe that's what Vanguard's thoughts are as well?? I also realize diversification is not about chasing returns. I only have the Van Eck emerging markets fund and the Europacific growth as international options in my 401k. No international index funds which I am not happy about. Thanks for any other thoughts you may have.
youngpleb
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Re: How much do you allocate to international equity?

Post by youngpleb »

50% of my total AA. About 1/4 of that is specifically in international small-cap, and the rest in total international. I like having a 50/50 split because I don’t miss out on anything. :sharebeer
Valuethinker
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Re: How much do you allocate to international equity?

Post by Valuethinker »

Blueberry2009 wrote: Fri Oct 23, 2020 8:16 pm Thanks for the input y'all. I will definetly do additional study and read the suggestion by Nisiprius and others. I had noticed Vanguard target funds have gone up to 40% of equity in international so I studied target funds from other companies. They seem to vary from around 30% to 40% of equity in international. I haven't researched this a lot but I had read an article in my Kiplingers magazine a couple years ago about the fact that international just hasn't done as well as domestic over the past 10 years or so I think it was. I do have concerns about the future of the U.S. though with the debt continuing to rise. Maybe that's what Vanguard's thoughts are as well?? I also realize diversification is not about chasing returns. I only have the Van Eck emerging markets fund and the Europacific growth as international options in my 401k. No international index funds which I am not happy about. Thanks for any other thoughts you may have.
If those 2 funds have high expense ratios they are not worth pursuing.
tibbitts
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Re: How much do you allocate to international equity?

Post by tibbitts »

Valuethinker wrote: Sat Oct 24, 2020 10:58 am If those 2 funds have high expense ratios they are not worth pursuing.
Yes, even at best international typically has some costs that domestic doesn't, depending on location (tax considerations in an IRA, etc.) Maybe .3- .4% total? But add to whatever your tax cost is to EuroPacific's .8%+ (in my plan) expense ratio and that's a lot. I might still use it for a small amount if it was my only way to get international exposure, but not necessarily the higher percentage most people suggest.
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abuss368
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Re: How much do you allocate to international equity?

Post by abuss368 »

Blueberry2009 wrote: Fri Oct 23, 2020 8:16 pm Thanks for the input y'all. I will definetly do additional study and read the suggestion by Nisiprius and others. I had noticed Vanguard target funds have gone up to 40% of equity in international so I studied target funds from other companies. They seem to vary from around 30% to 40% of equity in international. I haven't researched this a lot but I had read an article in my Kiplingers magazine a couple years ago about the fact that international just hasn't done as well as domestic over the past 10 years or so I think it was. I do have concerns about the future of the U.S. though with the debt continuing to rise. Maybe that's what Vanguard's thoughts are as well?? I also realize diversification is not about chasing returns. I only have the Van Eck emerging markets fund and the Europacific growth as international options in my 401k. No international index funds which I am not happy about. Thanks for any other thoughts you may have.
Vanguard and others appear to recognize a 30% - 40% “sweat spot” for international stocks from a diversification and risk/reward standpoint.

Importantly, and too often ignored or swept under the rug is Vanguard’s recommended 30% of bonds to international.
John C. Bogle: “Simplicity is the master key to financial success."
TikiMan
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Re: How much do you allocate to international equity?

Post by TikiMan »

Also of note, it is my understanding that Vanguard believes you should be at a world market cap weight. So roughly 43% is what Vanguard believes is ideal. This tends to not be brought up and missed on the forum. I follow that recommendation.
DJWaldron
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Re: How much do you allocate to international equity?

Post by DJWaldron »

Age 60, 3 years before retirement, 50/50 AA with 8% (16% of Stocks) in International Developed Markets.
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