Talk:Approximating Vanguard target date funds

I revised the international stock section based on American Funds EuroPacific Gr R5 Report (RERFX) and Neuberger Berman International Eq Trst Report (NIQTX) both using the MSCI ACWI Index (designed to measure the equity market performance of developed and emerging markets).

I wanted to show the details of why these funds couldn't be used, which is instructive.

Since the prior page revision stated that no equivalent international funds were available, I'm not sure on the accuracy of my edits.

--LadyGeek 19:05, 29 September 2013 (CDT)


 * I corrected the page. Since the plan has a developed market index fund there is no need to consider the actively managed developed market fund. The available emerging market fund is actively managed; which can be rejected because of its high expense ratio. The total international fund style box is also immaterial, since the first order of consideration is getting an approximate country and regional allocation. --Blbarnitz 19:43, 29 September 2013 (CDT)

I can't seem to find where NIQTX is defined as an emerging market fund. The fact sheet shows that it tracks the MSCI EAFE index (NIQTX) which I think is for developed markets (MSCI EAFE Index).

In a similar manner that one could use the S&P 500 Index (only fund available) as an approximation to the US total stock market, would "SPTN GLB XUS IDX ADV (FSGDX)" be an acceptable substitute for total international (if nothing else was available?) --LadyGeek 20:56, 29 September 2013 (CDT)


 * Here is the original text:

''The plan has developed and emerging market international index funds (RERFX and NIQTX), but the Morningstar [http://portfolio.morningstar.com/Rtport/Free/InstantXRayDEntry.aspx? Instant X-Ray] allocation percentages can not be adjusted to match the international style box shown above. Additionally, NIQTX has a relatively high expense ratio of 1.57%.''


 * Now the American Euro-Pacific fund (RERFX) is an active developed/emerging market fund, so per the original text NIQTX had to be the actively managed emerging market fund (will correct this error and remove all of this text, since it is immaterial). The "SPTN GLB XUS IDX ADV (FSGDX) is a total international index fund. The plan has a developed market index fund tracking the MSCI-EAFE index: SPTN INTERNATIONAL INDEX ADV (FSIVX).
 * The S&P 500 index is not a total market index; it essentially tracks large cap stocks, although it does contain a handful of smaller companies. Similarly, the MSCI-EAFE index does not include emerging markets, and as a large/mid cap index, does not provide meaningful exposure to international small cap stocks. --Blbarnitz 02:09, 30 September 2013 (CDT)