Open Side Menu Go to the Top
Register
Vanguard ETF's: VWO: Put more of my money into emerging markets? Vanguard ETF's: VWO: Put more of my money into emerging markets?

11-21-2007 , 03:23 PM
Currently I have 33% of my money invested in VTV (Vanguard Value ETF), 28% in VEU (Vanguard Intl In Fund), 27% VBR (Vanguard Small Cap Value ETF), and about 12% in VWO (Vanguard Emerging Markets).

I now plan to invest a sum almost equal to the amount I currently have invested now. Is there anything I should change as far as distribution is concerned? Would it be a good idea to invest more overseas since the US dollar is so weak or should that even factor into my thoughts. I don't see how it could be a bad thing to split 50/50 between overseas and US based investments. Seems easier to bet against the US than to bet against the rest of the world.
Vanguard ETF's: VWO: Put more of my money into emerging markets? Quote
11-21-2007 , 04:13 PM
Read the Sticky + Random Speculation FTW?
Vanguard ETF's: VWO: Put more of my money into emerging markets? Quote
11-22-2007 , 12:29 AM
Your allocation looks great (except that it only adds up 90%). I'd stick with it. Don't worry about the weak dollar.
Vanguard ETF's: VWO: Put more of my money into emerging markets? Quote
11-22-2007 , 03:36 PM
Quote:
Your allocation looks great (except that it only adds up 90%). I'd stick with it. Don't worry about the weak dollar.
Thanks gull. It does add up to 100%, though : )

Question: why not put more money overseas? Here is how I think of it and feel free to tell me if I'm wrong: when you are investing in overseas funds you are pretty much investing every else but the US...the world. Since the world is such a big place I think it makes more sense to have more money invested overseas than in the US. It seems more diversified. I don't know what the point of having 70% of my eggs in one basket (the US) is. I would also be more protected if more bad things were to happen to the US economy if I had most of my funds invested overseas. Also, generally, if the US is doing well, isn't the rest of the world doing well also?
Vanguard ETF's: VWO: Put more of my money into emerging markets? Quote
11-27-2007 , 04:28 PM
bump
Vanguard ETF's: VWO: Put more of my money into emerging markets? Quote
11-27-2007 , 09:21 PM
High international allocations help diversify a portfolio. A 50/50 split is usually a good starting point for splitting domestic and foreign equity. The market cap of the US is now like 40% or something, so if you want to own the market, a 40/60 split may be better. Also, know that with foreign funds you take on additional currency risk and slightly higher costs. In addition, small foreign funds diversify more than large growth/blend alone. In recent years, large foreign has had a high correlation with domestic equity.
Vanguard ETF's: VWO: Put more of my money into emerging markets? Quote
11-28-2007 , 05:47 AM
Emerging markets have been on a tear the past few years, but have slowed down relative to broader-based international funds. If you're playing momentum, there might still be some steam left in emerging markets, but watch it carefully, because it could head south fast (think Thai monetary meltdown).

It looks as if you're into value funds. If you believe Ken Fisher, then the current yield curve (long-term vs. short-term interest rates) would tend to favor growth over value.
Vanguard ETF's: VWO: Put more of my money into emerging markets? Quote
12-02-2007 , 06:40 PM
So what good growth ETFs would be nice a nice addition to what I currently have? Also what percentage would be ideal?
Vanguard ETF's: VWO: Put more of my money into emerging markets? Quote
12-02-2007 , 10:13 PM
I'm looking into some BRIC ETFs - EEB, BKF, or BIK.

I'm leaning towards BKF because it is more equally weighted in all BRIC countries.
Vanguard ETF's: VWO: Put more of my money into emerging markets? Quote

      
m