DFAE

omurchus

I’m 60% SPTM 40% VXUS in the brokerage. Roth IRA is 50% SPYM, 15% AVUV, 15% SCHF, 10% AVDV, 10% DFAE.

DontPeeInTheWater

Here are the big ones from Vanguard: Total World (VT), US (VTI), ex-US (VXUS), Developed markets ex-US (VEA), Emerging Markets (VWO). If you want to get really in the weeds, I believe that Dimensional and Avantis are worth the small increase in expense ratios for some small factor tilting, profitability screening, etc, so I incorporate several of their funds. DFUS, DFAW, DFAI, DFAE are Dimentional's equivalents to those Vanguard options I listed

Prudent-Corgi3793

Depends on your tax bracket. The bracket that benefits most from optimization is the 35% ordinary/15% qualified or the 37% ordinary/20% qualified bracket. For this group, I recommend splitting tax-efficient developed from the tax-inefficient emerging: - DFIV in taxable for large cap value, this is actually better than US equities since it is nearly 100% qualified plus gives you foreign tax credits - DISV or AVDV in taxable for small cap value. DISV is more tax efficient but AVDV has performed very slightly better - AVDE is reasonable too, but less tax efficient - Your choice of emerging market fund. AVEM, DFAE, DFEM are pretty good with better liquidity than heavier tilted options, but you probably want them in tax advantaged if you have some room there. The DFA funds are more tax efficient but haven’t performed as well. If you’re in a lower tax bracket (for instance 20-22% ordinary/15% qualified), then it’s actually better to get them all in taxable. This is because the advantages of the foreign tax credit outweigh the disadvantages of lower QDI.

secondbushome

If you want to add Developed Market Int’l stocks, you can try adding DFAI to your portfolio. It’s a ETF primarily composed of Euro/Japanese stocks based on factors. This also means it cuts out Emerging Markets, which is represented through DFAE and is more volatile. DFAI is great if you want to focus on countries with more established economies. I wouldn’t worry about missing out from only investing in the American market. The US weighs so heavily on the global economy that other markets just follow what happens with the US. You can buy individual stocks but you will really have to hope you choose right when you are less familiar with the foreign environments.

taxfreetendies

IMO Reduce the international exposure. The main purpose is to hedge against US downturn, but in retirement bonds should already accomplish that. That ratio is 60% US, 40% international. I'd do 25% VTI, 5.8% DFAI, and 2.8% DFAE (This would result in 74% US, 26% international) or you could even just drop DFAE IMO the expense ratio is too high anyway.

willywood

Currently I'm at 10% for Emerging Markets. AVEM has that slight tilt to mid-small value that I don't think DFAE has, which is what made me go for it. But I might actually take another closer look at DFAE.