What is the international portion of your portfolio and why?

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Re: What's Your International % and Why?

Post by Billyboy » Mon Jan 19, 2015 2:22 pm

I hold 18.5% of my equities in Vanguard's Total International Stock Fund. I really don't care for them; however, I've read so many posts on this site and Vanguard recommendations that in order to have a well diversified portfolio you should include International, much more than I hold but that's all I care to hold!
My 2 cents worth only. Good luck.

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Re: What's Your International % and Why?

Post by Sunny Sarkar » Mon Jan 19, 2015 2:24 pm

20% of equities (because Jack Bogle said so)
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Re: What is the international portion of your portfolio and

Post by z3r0c00l » Mon Jan 19, 2015 3:04 pm

avenger wrote:
z3r0c00l wrote:40% domestic - 40% international - 20% domestic bonds.

Why? Diversification and the logic of inexpensively matching the market by owning all stocks according to their market cap. Why would I seek this in domestic stocks but not international?

No international bonds?
No, bonds are fundamentally different than equity securities. Diversification is still important, but it is not required (nor really possible) to get the entire world market of bonds in a cheap investment portfolio, especially not based on market cap. Safe international bonds really stink right now, I mean really stink, and the risky ones are better replaced with stocks.

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Re: What is the international portion of your portfolio and

Post by staythecourse » Mon Jan 19, 2015 4:29 pm

goodenyou wrote:30% and declining. As international continues to perform poorly in comparison to US, and adding more to US only, international is becoming less a portion of my portfolio. Has there been a time where international has performed better than US? If so, when? TIA
This needs to be stickied as a very dangerous approach to investing. Putting more money into the recent outperformer flies against sound logic. If you don't want to hold international don't, but thinking it is better not to because U.S. has done better recently is a perfect recipe for disaster. Heck they even have a bias named specifically for that... recency bias.

Good luck.
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Re: What's Your International % and Why?

Post by grabiner » Mon Jan 19, 2015 4:34 pm

I am half international for both stocks and real estate. Part of the reason is that I overweight emerging markets for the diversification benefit.
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Re: What's Your International % and Why?

Post by Leif » Mon Jan 19, 2015 5:20 pm

40% International. A bit of home country bias, but still good diversification.
Investors should diversify across many asset-classes so that whatever happens, we will not have all our investments in underperforming asset classes and thereby fail to meet our goals-Taylor Larimore

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Re: What's Your International % and Why?

Post by CJ_Punk » Mon Jan 19, 2015 5:26 pm

Thanks for all the input guys! I seem to be right on the lower end of most of the responses I'm seeing...
Sunny Sarkar wrote:20% of equities (because Jack Bogle said so)
Does this effect you at all, then? http://www.bloomberg.com/news/2014-12-0 ... -u-s-.html

Or does it effect any of you?


Also, do you guys tilt internationally? I'm thinking about it, but part of me feels like adding a tilt when I'm on the lower end of the normal spectrum already is just adding unnecessary complexion...
Last edited by CJ_Punk on Mon Jan 19, 2015 6:44 pm, edited 1 time in total.

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Re: What's Your International % and Why?

Post by carofe » Mon Jan 19, 2015 5:39 pm

CJ_Punk wrote:

Also, do you guys tilt internationally? I'm thinking about it, but part of me feels like adding a tilt when I'm on the lower end of the normal spectrum already is just adding unnecessary complexion...

It depends what's your goal with international. If you are looking for greater return at greater risk you can tilt to emerging markets. The problem about tilt to riskier stuff is that if you, for instance give it up after 15 years no seeing any benefit you may be missing the next, let's say, 4 years of super great returns that make up for all those 15 years of low returns. The riskier you go the longer the periods of underperforming you are exposed to and the most likely you'll give up sometime in your lifetime.
Last edited by carofe on Mon Jan 19, 2015 5:41 pm, edited 2 times in total.
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Re: What's Your International % and Why?

Post by itstoomuch » Mon Jan 19, 2015 5:39 pm

Time difference in the foreign markets.
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Re: What's Your International % and Why?

Post by BC_Doc » Mon Jan 19, 2015 6:33 pm

I'm 96.5% international on the equity side of my investments.

Why? I live in Canada. Canada makes up about 3.5% of global cap weighting for publicly traded companies. The TSX also isn't very diversified by sector. On the international side, I hold approximately 50% US, 50% rest of the world (again, market cap weightings).

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Re: What is the international portion of your portfolio and

Post by tractorguy » Mon Jan 19, 2015 6:37 pm

I find these kinds of statements so fascinating coming from Bogleheads ... on the one hand, a belief that you can't outsmart the market and that the market is relatively efficient, but, at the exact same time, a conflicting belief that somehow the markets can't gauge geographical, political or economic risks across different countries. It makes less than no sense to me.
I'm not a rabid Boglehead, more of a believer that the efficient market theory makes general sense. And, I've saved up enough to finance my retirement with a large cushion so don't need to accept what I perceive to be added risk of putting a large part of my portfolio in emerging markets to get a few tenths of a point better returns. If this makes me a heretic, then so be it. I'll take my 20 lashes with a wet noodle and move on.

Seriously, I'm not that impressed with the statistic that shows that the U.S. is only 50% of the worldwide equity market because because this statistic includes both U.S. and non U.S. based investors. If there was an index that showed the international allocation of all of the U.S. based investors only, I'd consider that to be an interesting benchmark. U.S. based investors have the same inflation rate, same exchange rate issues, same tax code, and same access to and cost of foreign investments that I do. This is not the case for any investors who live out side of the U.S. Because non U.S. investors have different incentives and constraints, they will likely buy different equities than I would if I had perfect information.
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Re: What's Your International % and Why?

Post by Leif » Mon Jan 19, 2015 6:50 pm

Sunny Sarkar wrote:20% of equities (because Jack Bogle said so)
Actually, I believe Jack said 0%. But, IF YOU MUST, you can go UP TO 20%
Investors should diversify across many asset-classes so that whatever happens, we will not have all our investments in underperforming asset classes and thereby fail to meet our goals-Taylor Larimore

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Re: What is the international portion of your portfolio and

Post by EarlyStart » Mon Jan 19, 2015 7:18 pm

25% IXUS Total Intl Market


Per Vanguard's research, beyond 20% doesn't provide much more reduced fluctuation. I don't stress out over it. I'm not going project relative returns for domestic vs international over my 40+ year time horizon.

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Re: What's Your International % and Why?

Post by VictoriaF » Mon Jan 19, 2015 7:18 pm

The ratio of my equities is 2-to-1 of US-to-International. I chose it as a middle ground between adhering to the global market capitalization, which would call for 1-to-1, and holding only US stocks, which would be 1-to-0.

By adding 1-to-1 and 1-to-0, I got 2-to-1.

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Re: What's Your International % and Why?

Post by gkaplan » Mon Jan 19, 2015 7:21 pm

Deleted.
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Re: What's Your International % and Why?

Post by CJ_Punk » Mon Jan 19, 2015 7:22 pm

First of all, thanks everyone for posting! Very helpful to all, and I'd love to see more if anyone would like to share theirs.
carofe wrote: It depends what's your goal with international. If you are looking for greater return at greater risk you can tilt to emerging markets. The problem about tilt to riskier stuff is that if you, for instance give it up after 15 years no seeing any benefit you may be missing the next, let's say, 4 years of super great returns that make up for all those 15 years of low returns. The riskier you go the longer the periods of underperforming you are exposed to and the most likely you'll give up sometime in your lifetime.
I'm not going to lie, there's a good chance that's the best advice I've seen so far regarding tilting... I love the breakdown. Thank you!


Also, I'm sorry about the identical post a few days ago... my bad for not searching first. But by the time it was first pointed out to me, I thought it was too late to delete the thread.

Edit- thanks for merging it!

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Re: What's Your International % and Why?

Post by LadyGeek » Mon Jan 19, 2015 7:25 pm

CJ_Punk wrote:[Thread merged into here, see below (3rd page) --admin LadyGeek]

Just wondering. I'm putting together my my AA plan, and I'd love to hear from the board your thoughts on your own personal international percentages and why (also, if you have any invested in international bonds or not).

As of now, I'm at about 20% International stocks, 2% International bonds in terms of percentages of my overall portfolio, or (in other words) 22% of my stock allocation is international, and about 20% of my bond allocation is international (these figures are pre minor tilting, as I haven't finalized my AA, but I'm leaning heavily towards staying domestic (not intentionally, but still true)).

Thanks everyone!
CJ - Welcome to the forum! I merged your thread into here, which is in the Investing - Theory, News & General forum. Your question comes up frequently, hence the indication to combine the questions.

Once you have your asset Asset allocation figured out, start a new thread in the Investing - Help with Personal Investments using the Asking Portfolio Questions format. We'll get straightened pointed in the right direction.
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Re: What is the international portion of your portfolio and

Post by goodenyou » Mon Jan 19, 2015 9:07 pm

staythecourse wrote:
goodenyou wrote:30% and declining. As international continues to perform poorly in comparison to US, and adding more to US only, international is becoming less a portion of my portfolio. Has there been a time where international has performed better than US? If so, when? TIA
This needs to be stickied as a very dangerous approach to investing. Putting more money into the recent outperformer flies against sound logic. If you don't want to hold international don't, but thinking it is better not to because U.S. has done better recently is a perfect recipe for disaster. Heck they even have a bias named specifically for that... recency bias.

Good luck.
Thanks for the input. I am trying to re-balance to a lower international allocation. Once I get there, I will maintain my AA. Is there a flaw in that approach?
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Re: What is the international portion of your portfolio and

Post by sdsailing » Mon Jan 19, 2015 9:20 pm

I'm in the 10-15% range. Not really crazy about international in general, but include some for diversification or whatever you want to call it, including some emerging markets and small-mid international value.

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Re: What is the international portion of your portfolio and

Post by Noobvestor » Mon Jan 19, 2015 9:32 pm

goodenyou wrote:
staythecourse wrote:
goodenyou wrote:30% and declining. As international continues to perform poorly in comparison to US, and adding more to US only, international is becoming less a portion of my portfolio. Has there been a time where international has performed better than US? If so, when? TIA
This needs to be stickied as a very dangerous approach to investing. Putting more money into the recent outperformer flies against sound logic. If you don't want to hold international don't, but thinking it is better not to because U.S. has done better recently is a perfect recipe for disaster. Heck they even have a bias named specifically for that... recency bias.

Good luck.
Thanks for the input. I am trying to re-balance to a lower international allocation. Once I get there, I will maintain my AA. Is there a flaw in that approach?
Rebalancing is often misused or misunderstood, I'm not sure why - the 're' part you can think of as short for 'return' as in 'returning to a previous balance' if that helps. Choosing to move toward more US after the US has done well and international has done poorly is what we would call 'locking in losses', or: buying high and selling low. It doesn't really matter how you phrase it ;)
"In the absence of clarity, diversification is the only logical strategy" -= Larry Swedroe

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Re: What's Your International % and Why?

Post by Durzo » Mon Jan 19, 2015 9:38 pm

CJ_Punk wrote:First of all, thanks everyone for posting! Very helpful to all, and I'd love to see more if anyone would like to share theirs.
carofe wrote: It depends what's your goal with international. If you are looking for greater return at greater risk you can tilt to emerging markets. The problem about tilt to riskier stuff is that if you, for instance give it up after 15 years no seeing any benefit you may be missing the next, let's say, 4 years of super great returns that make up for all those 15 years of low returns. The riskier you go the longer the periods of underperforming you are exposed to and the most likely you'll give up sometime in your lifetime.
I'm not going to lie, there's a good chance that's the best advice I've seen so far regarding tilting... I love the breakdown. Thank you!


Also, I'm sorry about the identical post a few days ago... my bad for not searching first. But by the time it was first pointed out to me, I thought it was too late to delete the thread.

Edit- thanks for merging it!
I agree Carofe's response make a lot of sense.

Would there be different time periods for riskier investments? For example:

*Someone is 40+ years from retirement
*They have a risky bogleheadish portfolio (tilted towards riskier assets)
*If they want to retire with a 30/70 allocation should they at some point before retirement "untilt"?
*For example 10-5 years from retirement sell only the risky assets to reach the allocations?

-Joey

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Re: What is the international portion of your portfolio and

Post by staythecourse » Mon Jan 19, 2015 9:46 pm

goodenyou wrote:Thanks for the input. I am trying to re-balance to a lower international allocation. Once I get there, I will maintain my AA. Is there a flaw in that approach?
When one rebalances they are selling the winners (U.S.) and buy more of the losers (international) as an example from last years world equity performance. I think you mean you want to do the opposite? Sell the losers (International) and buy more of the winners (U.S.). Selling low and buying high is never a good idea.

BUT if you have decided the asset allocation you want has a more home country bias to help you with tracking error and ultimately stay the course it is reasonable. In which I would just do it. Just sell the amount of the losers to get to the level you want. The reason is what will happen if you plan to do this slowly and International posts 20% return this year? I doubt you will be selling the winner at that time to buy more of any laggard.

Once you start tinkering with your portfolio you are dealing with a potential fire.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

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Re: What is the international portion of your portfolio and

Post by MossySF » Mon Jan 19, 2015 9:53 pm

In 401K, international is 50% of equities it is split into 3 equal pieces for European, Pacific and Emerging Markets. My 401K plan has auto-rebalancing which makes it possible to implement this strategy. (Without auto-rebalancing, I'd hold just a single balanced fund.)

Other non-taxable accounts, I hold whatever the balanced fund decides is the international percentage.

In taxable, it has been 80% U.S., 20% EM. However, I'm now redirecting 80% of monthly contributions to Europe/Pacific developed markets as a rebalancing tactic for the U.S. run-up the past 5 years. If economic/market turmoils in Europe/Japan continue, I hope to pick up some discounted shares with my auto-investment plan.

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Re: What is the international portion of your portfolio and

Post by goodenyou » Mon Jan 19, 2015 9:55 pm

BUT if you have decided the asset allocation you want has a more home country bias to help you with tracking error and ultimately stay the course it is reasonable. In which I would just do it
This. Yes.

Good luck to you too!
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Re: What is the international portion of your portfolio and

Post by sperry8 » Mon Jan 19, 2015 10:05 pm

I currently hold 38.5% International (this includes direct holdings like VWO, SCZ, VINEX, and DODFX along with the portion of international held by other funds (such as VPMAX).

It used to be much much higher (was 45% if memory serves) but since US has started blowing the top off, the % has come down). Haven't invested new monies lately (I live off them), but if I come into cash and invest it will go into International to bring the balance up.

Why? Because I don't want to make a bet on the world and by holding this % Im actually high on my US holdings (as the US represents far less than this on a total world basis).
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Re: What's Your International % and Why?

Post by carofe » Tue Jan 20, 2015 2:37 pm

Durzo wrote: Would there be different time periods for riskier investments? For example:

*Someone is 40+ years from retirement
*They have a risky bogleheadish portfolio (tilted towards riskier assets)
*If they want to retire with a 30/70 allocation should they at some point before retirement "untilt"?
*For example 10-5 years from retirement sell only the risky assets to reach the allocations?

-Joey
I would say, if you are going to tilt and you strongly believe in it, do it until you die :D, stay the course, otherwise you may be loosing money.

I personally don't tilt to small caps, value, emerging market, etc..., except for REITs because I strongly believe in investing in REITs and I know that not matter what, I will stay the course with REITs all my life.
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Re: What is the international portion of your portfolio and

Post by Seattlenative » Wed Jan 21, 2015 4:56 pm

fourwedge wrote:Here's mine! International makes up 30% of my total portfolio. I hold:
VTIAX Vanguard Total int adm 14%
DFCEX DFA emerging markets core equity 6%
DISVX DFA international small cap value 6%
VFSVX Vanguard all wld ex us small cap 4%
If you don't have international, please let us know why?
As of today, my portfolio is 21.58% international. Today I sold all shares in two redundant international ETFs (CWI and DWX) - not primarily to reduce my international AA but to simplify my ETF holdings.

Therefore, as of today here's my seven international ETFs and their proportion of my current AA - and having seven international ETFs is not really necessary, as I will explain below. Some are in Schwab accounts, some are at Wellstrade:

VT - Vanguard Total World Stock (international part is 6.47%) (ER is 0.18%)
VXUS - Vanguard Total International Stock (4.69%) (ER is 0.14%)
SCHF - Schwab (Developed Market) International Stock (3.77%) (ER is 0.08%)
SCHC - Schwab (Developed Market) Small Cap International Stock (2.94%) (ER is 0.19%)
SCHE - Schwab Emerging Market Stock (1.72%) (ER is 0.14%)
EWX - SPDR S&P Emerging Market Small Cap (1.42%) (ER is 0.65%)
VWO - Vanguard Emerging Markets (0.57%) (ER is 0.15%)

I'm not planning to weed out any more of these positions, but if I were to start over again with my international - and depending on which brokerage you use - I'd skip EWX, VWO, and possibly VT. Obviously if you use the Vanguard brokerage, you could simply use VXUS, but the Schwab commission-free equivalent of VXUS would be a combination of SCHF, SCHC, SCHE and EWX. Of these, EWX has the highest ER, the rest are very low cost.

I like having a strong international position but it has crossed my mind just how much of the U.S. equity markets are for American companies earning a huge chunk of international revenue. Hence, I sold the two most-redundant international ETFs. VWO is also redundant but it's a very small holding in a Schwab account with an $8.95 sales commission, so I'm keeping it for now. There's no obvious compelling need for me to sell the other six ETF positions, particularly as the VXUS positions are only at Wellstrade and the other ETF positions are at Schwab.

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Re: What is the international portion of your portfolio and

Post by YDNAL » Mon Jan 26, 2015 6:02 am

staythecourse wrote:
goodenyou wrote:Thanks for the input. I am trying to re-balance to a lower international allocation. Once I get there, I will maintain my AA. Is there a flaw in that approach?
When one rebalances they are selling the winners (U.S.) and buy more of the losers (international) as an example from last years world equity performance. I think you mean you want to do the opposite? Sell the losers (International) and buy more of the winners (U.S.). Selling low and buying high is never a good idea.
This is a misconception.... "rebalancing" can use new money -- there is no reason to sell anything. The Stock Markets, at times, also help in these matters.

Regarding your question, goodenyou, rebalancing to "a lower international allocation" should be based on something. What does the following quote you posted mean to you? What/which tracking error?
goodenyou wrote:
BUT if you have decided the asset allocation you want has a more home country bias to help you with tracking error and ultimately stay the course it is reasonable. In which I would just do it
This. Yes.
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Re: What is the international portion of your portfolio and

Post by goodenyou » Tue Jan 27, 2015 9:00 pm

YDNAL wrote:
staythecourse wrote:
goodenyou wrote:Thanks for the input. I am trying to re-balance to a lower international allocation. Once I get there, I will maintain my AA. Is there a flaw in that approach?
When one rebalances they are selling the winners (U.S.) and buy more of the losers (international) as an example from last years world equity performance. I think you mean you want to do the opposite? Sell the losers (International) and buy more of the winners (U.S.). Selling low and buying high is never a good idea.
This is a misconception.... "rebalancing" can use new money -- there is no reason to sell anything. The Stock Markets, at times, also help in these matters.

Regarding your question, goodenyou, rebalancing to "a lower international allocation" should be based on something. What does the following quote you posted mean to you? What/which tracking error?
goodenyou wrote:
BUT if you have decided the asset allocation you want has a more home country bias to help you with tracking error and ultimately stay the course it is reasonable. In which I would just do it
This. Yes.
Take a look at THIS blog, an easy read, from Mike Pipper.
Great. Thanks. I am almost down to a 20% AA of my total equities for international because of the performance of TISM relative to TSM. I didn't sell anything. I got there faster because I was also adding new money to TSM. That's my target for the next 10 years as per my IPS. If international keeps going down and below my target AA for international, I will add more international. That was and is my plan. Thanks for the link.
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Re: What is the international portion of your portfolio and

Post by davidsorensen32 » Tue Jan 27, 2015 9:14 pm

Image

Reason: Waiting for Draghi's QE to pump the market ballon. Hope it returns something +ve sometime. Quite frankly has been a huge damper for my returns last 5 years. IMO Greece (and the rest of the PIGS) needs to be kicked out of the Euro for the market uncertainty to calm and for Europe to get mojo back. Japan is a basket case. Not sure if anything is going to happen there in my lifetime.

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Re: What's Your International % and Why?

Post by Noobvestor » Thu Jan 29, 2015 1:53 pm

Leif wrote:
Sunny Sarkar wrote:20% of equities (because Jack Bogle said so)
Actually, I believe Jack said 0%. But, IF YOU MUST, you can go UP TO 20%
As I posted in another thread, you may find my notes of what Jack Bogle said about international investing at Bogleheads 11 of interest: http://www.bogleheads.org/forum/viewtop ... st=1521456

Including this quote from Jack himself: "If there's one place I don't want people to take my advice, it's international. I want you to think it through for yourself."
"In the absence of clarity, diversification is the only logical strategy" -= Larry Swedroe

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Re: What is the international portion of your portfolio and

Post by goalie » Thu Jan 29, 2015 8:20 pm

I am currently 72/28 stocks to bonds. Domestic to international split is 36/36.
8% Developed Markets
8% FTSE ex-us small
8% Int'l Real Estate
12% Emerging Markets

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Re: What is the international portion of your portfolio and

Post by jimishooch » Fri Jan 30, 2015 12:47 pm

20% in VXUS,

small/mid cap exposure plus emerging markets, what's not to like...

thx
jim

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Re: What is the international portion of your portfolio and

Post by ashleyk23 » Mon Feb 09, 2015 12:21 pm

Why no love for Developed Markets Index (VDVIX) and Global Ex-U.S. Real Estate Index (VGXRX)? :confused I understand they don't have much history, but for someone new (like me, 28yo) to the game of investing, maybe it's a good thing to start buying since the price is low. :D Of course it makes sense to also have some safer bets like Star Fund (VGSTX) and maybe even some "in the middle" risky options like FTSE All‐Wld ex‐US SmCp Index (VFSVX) and International Value (VTRIX). :wink:

Image

I was thinking of something like this:
20% Vanguard International Value (VTRIX)
10% Vanguard FTSE All‐Wld ex‐US SmCp Index (VFSVX)
7.5% Vanguard Developed Markets Index (VDVIX)
7.5% Vanguard Global Ex-U.S. Real Estate Index (VGXRX)

Ashley K <3

protagonist
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Re: What is the international portion of your portfolio and

Post by protagonist » Mon Feb 09, 2015 1:07 pm

How much? Currently 26.4% of my stocks and 13.5% of my portfolio.

Why? Why not? It's all guesswork anyway. I have no crystal ball.

If you told me you would give me $10K if I would switch to 50%, or 0%, I would probably take you up on it.
Last edited by protagonist on Sun Feb 15, 2015 10:19 am, edited 1 time in total.

2tall4economy
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Location: Global

Re: What is the international portion of your portfolio and

Post by 2tall4economy » Tue Feb 10, 2015 12:51 pm

I'm 75 25 in favor of usa; no bonds. Of the 25, 100% is emerging. I'm just not convinced there is any gas left in declined former empire markets with socialist employment policies. Certainly the German and French companies operating now do well, but when was the last time a new blue chip emerged from there or a major new industry player came from there?

On the other hand, emerging markets are diving all the profits in global companies (other than the USA).

Having lived overseas for 5+ years I've lived both types of markets firsthand - there's nothing economically exciting in the old world - just ruins of great empires and fun tourism. Compare that to places like China where friends were becoming millionaires left and right.
You can do anything you want in life. The rub is that there are consequences.

Seattlenative
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Re: What is the international portion of your portfolio and

Post by Seattlenative » Sat Feb 14, 2015 6:26 pm

As of today, equity ETFs comprise 57.2% of my IRA portfolios, fixed-income ETFs comprise 34.0%, and cash constitutes 8.8%. I believe international equities are currently out-of-favor relative to U.S., but I have slightly increased my domestic ETF positions and they have recently grown due to share-price appreciation.

Domestic equity: 33.3% [71.7% of equity ETFs]
International equity: 23.9% [28.23% of equity ETFs]

If I needed to immediately invest the 8.8% cash position, I'd split the 8.8% evenly between fixed income and international.

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fortyofforty
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Re: What is the international portion of your portfolio and

Post by fortyofforty » Sun Feb 15, 2015 9:00 am

Seattlenative wrote:As of today, equity ETFs comprise 57.2% of my IRA portfolios, fixed-income ETFs comprise 34.0%, and cash constitutes 8.8%. I believe international equities are currently out-of-favor relative to U.S., but I have slightly increased my domestic ETF positions and they have recently grown due to share-price appreciation.

Domestic equity: 33.3% [71.7% of equity ETFs]
International equity: 23.9% [28.23% of equity ETFs]

If I needed to immediately invest the 8.8% cash position, I'd split the 8.8% evenly between fixed income and international.
Is the cash position you described above part of your emergency fund? If not, this is another reason I don't like ETFs. They almost force an investor to keep a cash position in his portfolio, leading to the cash drag on performance.
"In a time of universal deceit, telling the truth becomes a revolutionary act." - George Orwell | There are many roads to doublin'. | Original Vanguard Diehard

Seattlenative
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Re: What is the international portion of your portfolio and

Post by Seattlenative » Sun Feb 15, 2015 5:12 pm

fortyofforty wrote:Is the cash position you described above part of your emergency fund?
No. We have a six-month cash emergency fund separate from the IRAs. I'm trying to figure out the best place to invest the 8.8% cash portion; I'm really having difficulty fighting the impulse to time the market. At times, I wonder if I would be better off all of my IRA positions, transferring the accounts to Vanguard and putting 100% of the IRA proceeds into Admiral Shares of the Vanguard Balanced Index Mutual Fund (VBIAX).

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grabiner
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Re: What is the international portion of your portfolio and

Post by grabiner » Sun Feb 15, 2015 5:40 pm

Seattlenative wrote:
fortyofforty wrote:Is the cash position you described above part of your emergency fund?
No. We have a six-month cash emergency fund separate from the IRAs. I'm trying to figure out the best place to invest the 8.8% cash portion; I'm really having difficulty fighting the impulse to time the market. At times, I wonder if I would be better off all of my IRA positions, transferring the accounts to Vanguard and putting 100% of the IRA proceeds into Admiral Shares of the Vanguard Balanced Index Mutual Fund (VBIAX).
If you want a portfolio that you don't need to manage (and won't be tempted to mismanage), that is a good strategy, although I would recommend LifeStrategy Moderate Growth or an appropriate Target Retirement fund instead; these funds are better diversified, including international stock.
Wiki David Grabiner

mmmodem
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Re: What is the international portion of your portfolio and

Post by mmmodem » Sun Feb 15, 2015 6:22 pm

We are 22% international in the equity portion of our AA. Why? Because of simplicity. Both DW and my Roth IRA consist of only VTIAX. Both of our 401k's have 0.04% ER S&P500 institutional class index funds so we wanted to maximize the benefit. I'm not smart enough to know what % international is best for us. I am also too lazy to do anything about it. Coincidentally, seems to be inline with all the replies here so far. :D

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