[What's the difference? All-world ex-US vs. Total Internat.]

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randal7
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[What's the difference? All-world ex-US vs. Total Internat.]

Post by randal7 » Wed Jan 14, 2015 1:41 pm

...between FTSE all-world (ex-US) index (VFWAX) and Total International Index (VTIAX)? I get they track different indices. When I graph the performances together they seem identical. If there were no real difference there would not be two (you'd think), so what am I not seeing?

YDNAL
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Re: Could someone explain the difference...

Post by YDNAL » Wed Jan 14, 2015 1:46 pm

randal7 wrote:...between FTSE all-world (ex-US) index (VFWAX) and Total International Index (VTIAX)? I get they track different indices. When I graph the performances together they seem identical. If there were no real difference there would not be two (you'd think), so what am I not seeing?
VTIAX tracks the FTSE Global All Cap ex US Index. Notice the words "All Cap" telling you that it includes Mid and Small Caps.

Code: Select all

Value Blend Growth
  27    27    25  Large Caps
  06    05    05  Mid Caps
  02    01    01  Small Caps
VFWAX tracks the FTSE All-World ex US Index. This Index is limited to Large and Mid Caps -- it excludes Small Caps.

Code: Select all

Value Blend Growth
  30    30    27  Large Caps
  05    04    04  Mid Caps
  00    00    00  Small Caps
There is no "real difference" in performance because these cap-weighted funds are mostly influenced by the Large Caps and to some lesser extent the Mid Caps. A 4% allocation to Small Caps gets lost in translation, if you will.
Landy | Be yourself, everyone else is already taken -- Oscar Wilde

randal7
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Re: Could someone explain the difference...

Post by randal7 » Wed Jan 14, 2015 2:37 pm

Got it. Thanks.

rkhusky
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Re: Could someone explain the difference...

Post by rkhusky » Wed Jan 14, 2015 2:40 pm

Note that FTSE All-World ex-US has almost 2500 stocks. FTSE All-World ex-US Small Cap has almost 3300 stocks. Total International has almost 5800 stocks.

This is quite different than the relation between S&P 500, Extended Market and Total Stock Market on the US side.

Total Stock Market has a larger percentage of small companies than Total International, according to Morningstar's definitions of size.

YDNAL
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Re: Could someone explain the difference...

Post by YDNAL » Fri Jan 16, 2015 10:21 am

rkhusky wrote:Note that FTSE All-World ex-US has almost 2500 stocks. FTSE All-World ex-US Small Cap has almost 3300 stocks. Total International has almost 5800 stocks.

This is quite different than the relation between S&P 500, Extended Market and Total Stock Market on the US side.

Total Stock Market has a larger percentage of small companies than Total International, according to Morningstar's definitions of size.
Huh?
  • 1. It is irrelevant -- certainly not on topic -- how the US Total Mkt compares to International Total Mkt.
    2. How is your post helpful to OP's question regarding 2 different International indices?
    randal7 [OP] » Wed Jan 14, 2015 2:41 pm wrote:What's the difference? ...between FTSE all-world (ex-US) index (VFWAX) and Total International Index (VTIAX)?
Actually, US Total Mkt has 9% allocated to Small Caps and International Total Mkt has 4% allocated to Small Caps. But, even then, market caps in each distinct Region(s) are what they are.
Landy | Be yourself, everyone else is already taken -- Oscar Wilde

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Trevor
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Re: [What's the difference? All-world ex-US vs. Total Intern

Post by Trevor » Fri Jan 16, 2015 10:36 am

It's worth noting that the two international funds OP asked about are so similar that they are often used for tax-loss harvesting (selling one at a loss and buying the other, to avoid a wash sale)
WWJD - What Would Jack Do?

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