International completion index for EAFE

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TinpotInvestor
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International completion index for EAFE

Post by TinpotInvestor » Mon Mar 12, 2018 7:15 pm

Why doesn't Vanguard (or any other company) have an international completion index fund that matches up with an EAFE index fund?

This would make approximating the total international stock market much easier when an employer plan has an EAFE index fund as its passive international equity offering.

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triceratop
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Re: International completion index for EAFE

Post by triceratop » Mon Mar 12, 2018 7:46 pm

The reason is simply as likely as the fact that Vanguard doesn't use MSCI indices for its funds (it used to -- the Vanguard Developed Markets Index Fund (VDVIX/VEA) tracked the MSCI EAFE index until 2013).

Some companies do offer such products: have you considered iShares Core MSCI Emerging Markets ETF (IEMG)? So the answer to your question "or any other company" is that yes, there are some companies that do! :D
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

livesoft
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Re: International completion index for EAFE

Post by livesoft » Mon Mar 12, 2018 7:47 pm

I think one can figure this out.

For instance, VSS + VWO would be OK with me as a completion index, but there are other ways to skin the cat, too.
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triceratop
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Re: International completion index for EAFE

Post by triceratop » Mon Mar 12, 2018 7:48 pm

VSS + VWO would definitely not be okay with me as a completion index.

Maybe SCZ + VWO.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

lack_ey
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Re: International completion index for EAFE

Post by lack_ey » Mon Mar 12, 2018 8:15 pm

triceratop wrote:
Mon Mar 12, 2018 7:46 pm
The reason is simply as likely as the fact that Vanguard doesn't use MSCI indices for its funds (it used to -- the Vanguard Developed Markets Index Fund (VDVIX/VEA) tracked the MSCI EAFE index until 2013).

Some companies do offer such products: have you considered iShares Core MSCI Emerging Markets ETF (IEMG)? So the answer to your question "or any other company" is that yes, there are some companies that do! :D
Tracking EAFE and then MSCI emerging markets (e.g. IEMG) misses Canada, for what it's worth.

MnD
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Re: International completion index for EAFE

Post by MnD » Mon Mar 12, 2018 10:31 pm

We have a hodge-podge of SCHE, SCHC, VSS and GWX across various accounts to fill in a big EAFE chunk in my workplace plan.
Not perfect but adequate. A fair amount of small cap Canada in the above.

Eazyndn
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Re: International completion index for EAFE

Post by Eazyndn » Tue Mar 13, 2018 12:20 am

Why not use VEU?

selters
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Re: International completion index for EAFE

Post by selters » Tue Mar 13, 2018 5:18 am

The MSCI EAFA index is identical to the MSCI (developed) World ex US index, except Canada is not included.

Any low cost Emerging Markets index fund would be good enough to compmement the EAFE index. If really want to be exact about this, you can use the iShares MSCI Emerging Markets IMI ETF and the Franklin FTSE Canada ETF (FLCA) for the Canada exposure. But if Franklin's low cost single country ETFs don't catch on in the market, the ETFs the ETF will likely be closed down. The iShares Canada ETF will most likely not be closed down, but it has a much higher expense ratio. I wouldn't bother with a single country Canada ETF.

EAFE plus Emerging Markets is good enough for non-US exposure.

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hoppy08520
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Re: International completion index for EAFE

Post by hoppy08520 » Tue Mar 13, 2018 4:02 pm

There is a wiki page that talks about how to complement a EAFE fund with other funds to create a total international market allocation:

Approximating total international stock market - Bogleheads

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