What's your U.S. : International ratio?

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What's your U.S. : International ratio?

100:0
26
5%
80:20
88
16%
70:30
130
23%
60:40
100
18%
60:40
100
18%
50:50
96
17%
40:60
8
1%
30:70
10
2%
20:80
9
2%
 
Total votes: 567

dcabler
Posts: 365
Joined: Wed Feb 19, 2014 11:30 am

Re: What's your U.S. : International ratio?

Post by dcabler » Thu Feb 08, 2018 12:24 pm

20% International/80% US Will bump up Int'l a tad soon with a reshuffle inside an IRA.

pascalwager
Posts: 940
Joined: Mon Oct 31, 2011 8:36 pm

Re: What's your U.S. : International ratio?

Post by pascalwager » Mon Feb 12, 2018 8:59 pm

RRAAYY3 wrote:
Thu Feb 08, 2018 11:13 am
pascalwager wrote:
Thu Feb 08, 2018 2:19 am
I hold the world market AA. It changes daily, of course.

Today: US 52.4%, non-US 47.6%
Yeah I have a 5% “band” where I don’t bother rebalancing otherwise ... when it’s time for my next contribution, I just put it in whichever is lower - market decides for me
Sure, that seems fine, and frees Vanguard from making the other transaction.

TheNightsToCome
Posts: 190
Joined: Fri Jun 30, 2017 11:48 pm

Re: What's your U.S. : International ratio?

Post by TheNightsToCome » Tue Feb 13, 2018 12:55 pm

My equities allocation is 0% US, 100% international. That will change as relative valuations change.

BlackHat
Posts: 70
Joined: Tue Feb 14, 2017 1:47 pm

Re: What's your U.S. : International ratio?

Post by BlackHat » Tue Feb 13, 2018 1:18 pm

TheNightsToCome wrote:
Tue Feb 13, 2018 12:55 pm
My equities allocation is 0% US, 100% international. That will change as relative valuations change.
Woah. Are you just in a Total International Index Fund?
“Life is really simple, but we insist on making it complicated.” -- Confucius

92irish
Posts: 180
Joined: Thu Mar 01, 2007 12:05 pm

Re: What's your U.S. : International ratio?

Post by 92irish » Tue Feb 13, 2018 2:41 pm

I'm 50/50. I wish Vanguard would offer an Admiral share version of the Total World Stock Index fund - that would make my life easier. I'd prefer not to use the total world stock index ETF (VT), so I must split between the admiral total US stock market and admiral total intl' market index keep the expense ratio down. Not sure why Vanguard won't open an Admiral class of the total world index mutual fund.

TheNightsToCome
Posts: 190
Joined: Fri Jun 30, 2017 11:48 pm

Re: What's your U.S. : International ratio?

Post by TheNightsToCome » Tue Feb 13, 2018 3:26 pm

BlackHat wrote:
Tue Feb 13, 2018 1:18 pm
TheNightsToCome wrote:
Tue Feb 13, 2018 12:55 pm
My equities allocation is 0% US, 100% international. That will change as relative valuations change.
Woah. Are you just in a Total International Index Fund?
I use ETFs; mainly IEMG, IEFA, SCHF, VGK.

Drovor
Posts: 76
Joined: Sun Oct 25, 2015 9:50 am

Re: What's your U.S. : International ratio?

Post by Drovor » Tue Feb 13, 2018 4:03 pm

92irish wrote:
Tue Feb 13, 2018 2:41 pm
I'm 50/50. I wish Vanguard would offer an Admiral share version of the Total World Stock Index fund - that would make my life easier. I'd prefer not to use the total world stock index ETF (VT), so I must split between the admiral total US stock market and admiral total intl' market index keep the expense ratio down. Not sure why Vanguard won't open an Admiral class of the total world index mutual fund.
Would be nice seeing an Admiral class for Total World.

pascalwager
Posts: 940
Joined: Mon Oct 31, 2011 8:36 pm

Re: What's your U.S. : International ratio?

Post by pascalwager » Tue Feb 13, 2018 4:13 pm

Drovor wrote:
Tue Feb 13, 2018 4:03 pm
92irish wrote:
Tue Feb 13, 2018 2:41 pm
I'm 50/50. I wish Vanguard would offer an Admiral share version of the Total World Stock Index fund - that would make my life easier. I'd prefer not to use the total world stock index ETF (VT), so I must split between the admiral total US stock market and admiral total intl' market index keep the expense ratio down. Not sure why Vanguard won't open an Admiral class of the total world index mutual fund.
Would be nice seeing an Admiral class for Total World.
At Vanguard, higher net assets leads to lower ER. So invest in it now and you'll help bring down the ER.

MnD
Posts: 3165
Joined: Mon Jan 14, 2008 12:41 pm

Re: What's your U.S. : International ratio?

Post by MnD » Tue Feb 13, 2018 6:41 pm

RRAAYY3 wrote:
Thu Feb 08, 2018 11:13 am
pascalwager wrote:
Thu Feb 08, 2018 2:19 am
I hold the world market AA. It changes daily, of course.

Today: US 52.4%, non-US 47.6%
Yeah I have a 5% “band” where I don’t bother rebalancing otherwise ... when it’s time for my next contribution, I just put it in whichever is lower - market decides for me
i specifically don't have a fixed ratio or any band. US to ex US global cap ratio could be 75/25 or 25/75 in the future. if history is any guide, maintaining any fixed ratio is going to require significant and regular rebalancing and more importantly, tilting farther to or farther away from US depending on what the all country all cap index weightings are. Total world approach doesn't require the trading of rebalancing or tilting. If the US or rest-of-the-world go on big run, I want to be on that train, not fighting it.

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StevieG72
Posts: 682
Joined: Wed Feb 05, 2014 9:00 pm

Re: What's your U.S. : International ratio?

Post by StevieG72 » Tue Feb 13, 2018 8:25 pm

15% of stocks.

Target is 20%, I will get there eventually.
Fools think their own way is right, but the wise listen to others.

pascalwager
Posts: 940
Joined: Mon Oct 31, 2011 8:36 pm

Re: What's your U.S. : International ratio?

Post by pascalwager » Tue Feb 13, 2018 9:59 pm

MnD wrote:
Tue Feb 13, 2018 6:41 pm
RRAAYY3 wrote:
Thu Feb 08, 2018 11:13 am
pascalwager wrote:
Thu Feb 08, 2018 2:19 am
I hold the world market AA. It changes daily, of course.

Today: US 52.4%, non-US 47.6%
Yeah I have a 5% “band” where I don’t bother rebalancing otherwise ... when it’s time for my next contribution, I just put it in whichever is lower - market decides for me
i specifically don't have a fixed ratio or any band. US to ex US global cap ratio could be 75/25 or 25/75 in the future. if history is any guide, maintaining any fixed ratio is going to require significant and regular rebalancing and more importantly, tilting farther to or farther away from US depending on what the all country all cap index weightings are. Total world approach doesn't require the trading of rebalancing or tilting. If the US or rest-of-the-world go on big run, I want to be on that train, not fighting it.
From what I understand, the VG Life Strategy and Target Date series will eventually go to world market ratios for both stocks and bonds.

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zonto
Posts: 92
Joined: Tue Aug 24, 2010 3:45 pm
Location: Boston, MA

Re: What's your U.S. : International ratio?

Post by zonto » Tue Feb 13, 2018 10:22 pm

pascalwager wrote:
Tue Feb 13, 2018 9:59 pm
From what I understand, the VG Life Strategy and Target Date series will eventually go to world market ratios for both stocks and bonds.
Do you have a source for this? It would make sense, but I haven't read anything official.

Dominic
Posts: 138
Joined: Sat Jul 02, 2016 11:36 am

Re: What's your U.S. : International ratio?

Post by Dominic » Tue Feb 13, 2018 10:26 pm

I'm 60/40 since that's what Vanguard defaults to in their fund-of-funds.

If I were doing this manually (i.e. I could afford admiral shares of the four-fund portfolio), I'd probably keep that split. It's close enough to the market cap allocation, but gives me a touch less exposure to currency risk. If/when international markets continue to outgrow the US market, I'll adjust my international holdings upward. (I'll try to stay within 5-10% of the market cap ratio.)

jalbert
Posts: 2504
Joined: Fri Apr 10, 2015 12:29 am

Re: What's your U.S. : International ratio?

Post by jalbert » Tue Feb 13, 2018 10:33 pm

zonto wrote:
Tue Feb 13, 2018 10:22 pm
pascalwager wrote:
Tue Feb 13, 2018 9:59 pm
From what I understand, the VG Life Strategy and Target Date series will eventually go to world market ratios for both stocks and bonds.
Do you have a source for this? It would make sense, but I haven't read anything official.
I think that is doubtful. Vanguard references a study they did wherein they found 40% to be optimal. Studies like that usually suffer from sample bias, and maybe they will do a new study and arrive at a different (not necessarily higher) number.
Risk is not a guarantor of return.

pascalwager
Posts: 940
Joined: Mon Oct 31, 2011 8:36 pm

Re: What's your U.S. : International ratio?

Post by pascalwager » Tue Feb 13, 2018 10:44 pm

jalbert wrote:
Tue Feb 13, 2018 10:33 pm
zonto wrote:
Tue Feb 13, 2018 10:22 pm
pascalwager wrote:
Tue Feb 13, 2018 9:59 pm
From what I understand, the VG Life Strategy and Target Date series will eventually go to world market ratios for both stocks and bonds.
Do you have a source for this? It would make sense, but I haven't read anything official.
I think that is doubtful. Vanguard references a study they did wherein they found 40% to be optimal. Studies like that usually suffer from sample bias, and maybe they will do a new study and arrive at a different (not necessarily higher) number.
It's on the VG website, in their blog, I think--an interview. I'll look for it. The interviewee said–-more or less--that by going from 20, to 30, to 40% non-US, they were easing people into market weighting and that Vanguard believes in market weighting. He emphasized that it would hold for both stocks and bonds.

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aj76er
Posts: 447
Joined: Tue Dec 01, 2015 11:34 pm
Location: Portland, OR

Re: What's your U.S. : International ratio?

Post by aj76er » Tue Feb 13, 2018 10:53 pm

67% World (includes U.S.)
33% U.S.

When implemented in terms of VTSAX and VTIAX, this comes to about 68% U.S. (VTSAX) and 32% ex-U.S. (VTIAX). Not too far off from Vanguard's present recommendations.

My goal is to track long-term global growth patterns while still reducing the short-term effects of currency risk; and also have positive correlation with long-term domestic inflation. Also, in a study by forum member, Saimond, this ratio was seen as a sweet-spot across all developed countries in the last 50 years.
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle

jalbert
Posts: 2504
Joined: Fri Apr 10, 2015 12:29 am

Re: What's your U.S. : International ratio?

Post by jalbert » Wed Feb 14, 2018 1:16 am

Conclusion

In light of quantitative analysis and qualitative considerations, we have demonstrated that domestic investors should consider allocating part of their portfolios to international securities, and that a 20% allocation may be a reasonable starting point. Although finance theory dictates that an upper asset allocation limit should be based on the global market capitalization for international equities (currently approximately 51%), we have demonstrated that international allocations exceeding 40% have not historically added significant additional diversification benefits, particularly accounting for costs. For many investors, an allocation between 20% and 40% should be considered reasonable, given the historical benefits of diversification. Allocations closer to 40% may be suitable for those investors seeking to be closer to a market- proportional weighting or for those who are hoping to obtain potentially greater diversification benefits and are less concerned with the potential risks and higher costs. On the other hand, allocations closer to 20% may be viewed as offering a greater balance among the benefits of diversification, the risks of currency volatility and higher U.S. to non-U.S. stock correlations, investor preferences, and costs.
In: https://www.vanguard.com/pdf/ISGGEB.pdf
Risk is not a guarantor of return.

Jimmar
Posts: 15
Joined: Sat Jul 02, 2016 2:50 am
Location: Winter Park, FL

Re: What's your U.S. : International ratio?

Post by Jimmar » Wed Feb 14, 2018 6:50 am

12.04% International Stocks
5.19% Bonds

Mr.BB
Posts: 371
Joined: Sun May 08, 2016 10:10 am

Re: What's your U.S. : International ratio?

Post by Mr.BB » Wed Feb 14, 2018 11:25 am

15% International
"We are what we repeatedly do. Excellence, then, is not an act, but a habit."

lostdog
Posts: 738
Joined: Thu Feb 04, 2016 2:15 pm

Re: What's your U.S. : International ratio?

Post by lostdog » Wed Feb 14, 2018 11:31 am

"Time in the market is better than timing the market" -Toons | 60/40 US/International -Vanguard Recommendation

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