What's Vanguard Saying Today re developed vs emerg mkt stock allocation?

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tominsc
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Joined: Wed Dec 30, 2020 12:25 pm

What's Vanguard Saying Today re developed vs emerg mkt stock allocation?

Post by tominsc »

I don't know how to find Vanguard's generic investment advice on their public website and I don't currently pay them to be my own advisor. So I wonder if any of you happen to know what their latest allocation advice is with respect to how to split a foreign stock allocation into developed vs emerging markets.

I'm aware there are several funds that would do that. I'm not asking right now how to pick specific funds that have particular percentages in one flavor or the other. I'm just curious now what sort of rough targets they are suggesting I shoot for, to divvy up my foreign allocation. Approx what % of my total foreign allocation should be developed, what % emerging, etc.

Thx.
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ruralavalon
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Re: What's Vanguard Saying Today re developed vs emerg mkt stock allocation?

Post by ruralavalon »

Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) is about 75% developed markets and 25% emerging markets. The same in Vanguard FTSE All-World ex-US Index Fund Admiral Shares (VFWAX). I suppose that is their generic advice.
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megabad
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Re: What's Vanguard Saying Today re developed vs emerg mkt stock allocation?

Post by megabad »

If you interpret the Target Retirement funds as "advice", than I would agree with above. Vanguard appears to hold approximately a cap weighted between emerging/developed (depending on what index you use).
alex_686
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Re: What's Vanguard Saying Today re developed vs emerg mkt stock allocation?

Post by alex_686 »

ruralavalon wrote: Wed Jan 13, 2021 1:27 pm Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) is about 75% developed markets and 25% emerging markets. I suppose that is their generic advice.
That index fund follows FTSE Global All Cap ex US Index. So really, that is what the index advice is - not so much Vanguard. And the index is just passively following the market...

I don't know about Vanguard specifically, but generally people have been increasing to market weights in EM. EM market cap is a market cap index. The companies in that index are looking less like small companies tied to 2nd tier markets and are increasing looking like normal multinational companies which have corporate standards equivalent to DM. For example, many file sponsored ADRs in the US which puts them under SEC jurisdiction.
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livesoft
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Re: What's Vanguard Saying Today re developed vs emerg mkt stock allocation?

Post by livesoft »

See this post with their recent (Jan 8, 2021) split of 24.0% to Vanguard's definition of Emerging Markets shown:
viewtopic.php?p=2248842#p2248842
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