DFAI

brewgeoff

If you already own VOO then buying a global fund is not going to create the desired effect of diversification. It will… but very slowly. The easier way is to just buy an international fund like IEFA, VXUS, DFAI or SCHF.

brewgeoff

You would likely be better served to hold something like IEFA, DFAI or VEA than SCHY for your international sleeve.

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

Accomplished_Bath940

Half this sub gonna quit pennies if DFAI doesn't run soon

Elibroftw

That's why I recommend a mix heavy in DISV and DFAI

libgadfly

And DFAI has over several years performed better than VXUS.

libgadfly

Each to his own, but if tax loss harvesting is the prime objective, then not being fully invested right away can result in missed upside opportunities that it is impossible to forecast. For me, if I had even stayed one day in cash when I sold VXUS I would have had been paying 10% more for the replacement DFAI. Literally true.

libgadfly

Not a “blanket statement”. Comes down to convincing another human being, an IRS agent, that VXUS and IXUS or VXUS and DFAI are not identical enough to trigger a wash sale. And VXUS and IXUS has a much higher risk of an unsophisticated IRS agent saying it’s a wash sale.

libgadfly

Not a “blanket statement”. Comes down to convincing another human being, an IRS agent that VXUS and IXUS or VXUS and DFAI are not identical enough to trigger a wash sale. And VXUS and IXUS has a much higher risk of an unsophisticated IRS agent saying it’s a wash sale.

libgadfly

I would not like to try to have to prove to an IRS agent that VXUS and IXUS are different enough after being accused of a wash sale. I can very comfortably with DFAI and VXUS.

GhostEntropy

You could of also switched to IXUS or SCHF. DFAI is actively managed and is going to have a higher expense ratio.

libgadfly

Good point so that is why I used ETF comparison tools. DFAI is actively managed and only invests in developed markets. In contrast, VXUS is passively managed and only invests in both developed and emerging markets. So I can prove to the IRS these 2 ERF’s are not identical which triggers a wash sale.

libgadfly

Wrong conclusion about “guessing the market direction”. I periodically tax loss harvest with the same etf’s (VXUS and DFAI) when the markets allow. In January I took a tax loss harvest on DFAI and reinvested in VXUS. VXUS had a nice capital gain for 3 months and then got caught in the tariff downdraft causing overall losses that I then tax loss harvested buying DFAI. If the markets allow and I have a large enough DFAI tax loss (hope I have a capital gain of course) I will tax loss harvest again with VXUS.

fullintentionalahole

UDN is basically equivalent to holding foreign currency, but yeah, I'd go for BNDX (foreign bonds) if you want something longer term/to avoid inflation. If you want foreign stocks, VXUS or DFAI are nice, but those are fairly correlated to US stocks and are not exactly safe if the US goes south. GLD and FGDL are good too. Gold is a tad bit overvalued, though. In my case, I'm balancing a carefully tuned mix of long/short positions in stocks, real estate etfs, and crypto that should gain value while being market neutral, i.e. have near zero correlation to the market. But that takes a bit of work to get right.

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.

FordMcD29

Thanks. Yeah I have an international ETF (DFAI) + an REIT (O - Realty income), but those are in my brokerage - not my roth.

Tapiture-

It at a very similar stage in my life as you so take my advice with a grain of salt. But I would throw in some international / European indexes like DFAI, VT or VEU.

realmastodon2

You can try for DFAU and DFAI instead of the usual vti or FZROX.