IEMG
iShares Core MSCI Emerging Markets ETF
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Keep Wealthfront allocation or move to 3 fund portfolio?
Is my proposed portfolio more complex than it needs to be?
I want to increase my exposure to emerging markets with ETFs and I'm considering IEMG, SCHE and VWO. The overlap between them is ~ 50%. Would it make more sense to hold just one of them or break down my emerging markets portion into 2 or 3 different funds?
Why does VWO have P/E Ratio of 5, while other EM ETFs have P/Es more like 15-20?
Why does VWO have P/E Ratio of 5, while other EM ETFs have P/Es more like 15-20?
Can we stop listening to asset management expert predictions?
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Real estate is not “passive income.” How it was labeled that way I have no idea. You have to deal with maintenance, repairs, rising property taxes and insurance costs, tenants not paying and their extensive rights, lawsuits, property damage, and other stuff I’m prob forgetting. How is that passive? Also ask yourself: am I investing for income or growth? If you’re 27 you should prob be thinking growth so you can set yourself up for retirement. In that case it’s easy: max out tax-advantaged accounts like HSA, Roth IRA, 401(k) and if you still have money to invest open a taxable brokerage account. SPY is fine and mix in some IEFA for Int’l, VB for small cap, and IEMG for emerging markets.
FSPSX is where a large chunk of my S&P investment went (I still have a decent amount in the S&P). I moved more into bonds than I have been when I rebalanced and picked up IGOV and ISHG. I have some exposure to emerging markets in IEMG. That’s about 3/5 and the rest is in S&P or GUNR and some longer shot stocks I’ve picked up with some of my dry powder cash.
You see how China barely sold off? This is why I sold my IVV for IEMG and IXUS ASHR is you want to be spicy I’ve got lottery ticket calls for this one
SPY up .2 IXUS up .3 IEMG up .9 Emerging markets have more upside than US stocks
I have just recently been researching this and here is where I am starting to look into. For a pure currency play, currency ETFs like FXE, FXB, FXY, or CEW (multi-currency strategy). For both equity growth and currency exposure, ETFs like VEA, VWO, IEFA, or IEMG. I haven't gotten too far into research on these individually, but that is my plan for this weekend and create a port strategy.
# When IEMG is more stable than SPY 🤦🏻♂️
**Fun Fact (2014–2024):** * **IVV (S&P 500 - U.S. Stocks):** \+238% * **EWC (Canada ETF - Canadian Stocks):** \+47% * **IEFA (Developed Markets ex-US ETF - Major Countries: Japan, UK, France, Germany, Australia, Switzerland):** \+30% * **IEMG (Emerging Markets ETF - Major Countries: China, India, Brazil, South Korea, Taiwan, South Africa):** \+17%
Been increasing exposure to VXUS. Also took positions in ASML and Leonardo. Also quietly IEMG is up 5.3% YTD.
Vxus, IEMG, XLP, SCHA. I don’t trust much rn
Buy 35 % IVV (S&P 500) Buy 25 % RSP (equal weighted S&P 500) Buy 25 % PFF (Preferred stock ETF) Buy 10% IEMG (Emerging Markets ETF) Buy 5% GLD (Gold ETF)
Yes absolutely there is for diversification. A total international index like VTIAX / VXUS is roughly 80% developed non US and 20% Emerging Markets. I am not inclined to have more emerging market exposure than that in my portfolio. If I was I would look at buying IEMG from ishares…
Yes, EEM (the oldest emerging markets ETF) has delivered a solid 8.38% return since inception and is uncorrelated with developed markets. That's a 9% return if you account for the overpriced 0.70% expense ratio that the fund has (you would use VWO or IEMG today which are both under 10 basis points).
An ideal allocation for you, if you want a 100% equities portfolio that is globally-diversified and has best risk-adjusted returns would be as per below: US: VOO or VTI @ 50% US Small Cap Value: AVUV @ 10% International Developed: VEA or IEFA @ 30% Emerging Markets: VWO or IEMG @ 10%
First, please keep in mind that there is no perfect answer and vet all responses you receive. Personally, I like IEFA and IEMG. It has plenty of legit industries and sectors that should be secular. Please hit me up if u need anything further
Ah yes thanks for the correction and confirmation. I think I’m going to pair these with iShares for tax loss harvesting purposes (if needed). (VOO ~ IVV, VXF ~ SMMD, VEA ~ IEFA, and VWO ~ IEMG)
* **Core Holdings (URTH, VTV, FLTR)**: These make up the bulk of the portfolio, and they provide solid exposure to global stocks, U.S. value stocks, and bonds, which is a good foundation. * **Redundancy**: ETFs like **IAU** and **GLD** both track gold, and **IGSB** and **VTIP** both cover short-term bonds, so you might simplify by choosing one of each to avoid unnecessary overlap. * **Small Allocations**: With only 4-5% allocated to the other ETFs, it may not move the needle much. You could consider consolidating these into fewer ETFs with broader coverage, such as sticking with **IEMG** for emerging markets instead of splitting it with **EMXC**.
Just an idea. 40% IEMG + 60% EMXC results in about a 25% position in India (making it the top holding) and knocks China down to 9.93%, putting China's placement under S.Korea and above Brazil.
Here are 4 ETFs that invest primarily in "emerging markets". Looking at the 5 year record, it's not something I'm going to dive into any time soon. * Vanguard FTSE Emerging Markets ETF (VWO)5-year annualized return (as of December 31, 2023): 3.23% * iShares Core MSCI Emerging Markets ETF (IEMG)5-year annualized return (as of December 31, 2023): 3.13% * Schwab Emerging Markets Equity ETF (SCHE)5-year annualized return (as of December 31, 2023): 3.17% * SPDR Portfolio Emerging Markets ETF (SPEM)5-year annualized return (as of December 31, 2023): 3.78%
sure, mexico, india (FLIN, IFN), and emerging markets IEMG, are good.
Great content here, I read all the guide and a bunch of comments. Can you summarize your approximate allocation by asset class without giving away too much? I tried backtesting an earlier version of your portfolio which you recommended as 60/25/15 VFMF/DFIV/IEMG by replacing those funds with US Stock, ex-US Value, and Emerging Markets, but it sounds like you are more broadly diversified now into commodities and other types of assets. In my layman's understanding, that update, with rebalancing, should be a much more robust portfolio over the long term. I can't say how reasonable it is to simulate VFMF with US Stock, as that specific fund hasn't existed for more than a few years. Happy to share what PortfolioVisualizer spits out if you're willing to play along. There may be a HFEA angle here - can't help it :-)
I sold my IEMG position but would consider an ex China or all India fund at some point.
I see a lot of geopolitical risk for IEMG/IXUS holdings. It makes me nervous especially with the US going more and more towards isolationism. For that reason, I'm purposefully underweight in international holdings. There may be some risk premium there, but I also thought there was risk premium in Gazprom for the dividend... and then Russia invaded Ukraine.
Not over a decade but 8 years. But buy and hold IEMG and QQQ for 8 years as my wife holds SPY and IXUS. About +150% all time returns. Buy and hold only. But we haven’t really faced any major recessions so once the big one hits who knows how one will feel.
Yes, you got it. I would add that instead of waiting the 30 days sitting in cash, you can do the true tax-loss harvest thing, which is to switch to a different horse immediately so you remain invested (in something similar, not identical). And after 30 days you'll can decide to stick with the new horse or switch back to the old one. This can be like selling CocaCola and buying PepsiCo. Or, with ETFs it's a lot easier. Pair VOO with VTI. Pair IJR with IWM. Pair IEFA with EFA. Pair IEMG with EEM. etc.
Can anyone explain what is happening with emerging markets, specifically VWO / IEMG and why they are so down today ?
I have a brokerage account with Wealthfront that I recently stopped making regular contributions. I figured that weekly investment was better served going to max out the 401k for the year. Value is a little over 100k. Current mix at 9/10 risk score is: 45% US stocks (VTI) 18% foreign developed stocks (SCHF) 18% emerging market stocks (IEMG) 11% dividend growth (VIG) 09% municipal bonds (VTEB) No real timeline or goal for this money, just want it to continue to grow. If I expect to pause contributions for the next few years, how should I rebalance this account? My thought is to go heavy into dividends and let the reinvestments grow the account. Age mid 30s, also have a Roth that will keep getting max contribution. Thanks in advance.
International does not mean basically Chinese. That's not even true for emerging markets funds. EEM, VWO, and IEMG, the largest EM funds, have between 20-40% in Chinese/Hong Kong holdings. Diveraified international funds, like VXUS, which is what the comment suggests investing in, have less than 10%, usually 5-7%, of their holdings in Chinese stocks.
If I recall swisx doesn't include South Korea or Canada which is included in VEU, if you are trying to target developed markets. Also swisx+sche/vwo doesn't include south korea , you would have to use IEMG to get South Korea Canada if you want to cover all countries. Samsung is one of the largest companies in the world so you would not be getting any exposure. SWPPX is only sp500 as far as you are aware that you are missing out on extended market when you drop SCHB for it.
Tax loss harvesting will explain why I don't have some of them any more. And not wanting to realize gains will explain why I have some I don't want or repeated stuff (like VOO and VTI). If I could start again, I'd do 60/25/15 VFMF/DFIV/IEMG. All smart-beta except EM (where it's too expensive IMO to implement). But over time, as you TLH, you'll end up with more positions. Complexity is the price you pay for lower taxes I guess.
VTI and ITOT are essentially the same stock i would pick one or the other. I checked VTEB and MUB and it looks like they are basically the same too. I'm betting VWO and IEMG are near the same also. I would pick just one for these 3.
Yes, if you're looking to avoid the US market, there are several alternatives to consider for exposure to Europe, emerging markets, and Asia. For Europe, you could look at ETFs like the GraniteShares ETFs, iShares Europe ETF or the Vanguard FTSE Europe ETF. For emerging markets, options include the GraniteShares HIPS US High Income ETF, iShares Core MSCI Emerging Markets ETF (IEMG) or the Vanguard FTSE Emerging Markets ETF (VWO). Finally, for Asia, you might consider ETFs like the GraniteShares 2x Long TSLA Daily ETF, iShares MSCI Asia ex Japan ETF (AAXJ) or the Vanguard FTSE Asia ex Japan ETF (VAW). These ETFs can provide diversified exposure to these regions, helping you avoid the US market. Hope, it will help.
I still have a small amount of IEMG which is a broad EM fund with about 21-22% China exposure, which is probably still too much
Yeah, IEMG looks out of place on this list. It's only at 22% from peak valuation right now, which is equal to where the SP500 was just over a year ago.
I think max drawdown would make more sense for ranking funds. IEMG is currently at only 22% drawdown and the EM index historical max drawdown is only 60% which is equivalent to other equity indices. I understand this list is based on absolute dollar value but IEMG is nothing like some of the other funds on this list (short equity, UVXY) where you might as well have thrown your cash in the fireplace.
Hi Redittors! I’m quite a newbie at long-term investing, and I wanted to seek everyone’s input on a portfolio allocation strategy i’ve recently constructed. Briefly for context, I’m still in my 20s and have a long time horizon so I wanted an aggressive portfolio to maximise my profits. A few beliefs i’ve subscribed to are: (1) To Invest in the best while keeping stakes in the rest. I believe in going heavier in US stocks as it’s the prevailing leading economy, but also to diversify across other geographical sectors to minimise exposure risk. (2) Emerging markets such as India and China are poised for significant growth in the next 20 years. Therefore I believe in separately purchasing an Emerging Markets ETF to increase their weightage in my portfolio, as opposed to opting for a global ETF which includes a minority stake in the emerging markets. (3) To ride mega trends to maximise profits. I believe that certain sectors such such as AI, Automation, Healthcare, Circular Economy, and Agricultural Innovation will grow in the coming years, driven by global trends such as technological advancements, aging populations, overpopulation, and increasing risk posed by climate change. Therefore, I believe in purchasing thematic ETFs to increase my weightage in sectors I believe in. (4) That Bonds are no longer the best hedge against economic downturns given the current interest rate environment. I believe in replacing bonds with stable global dividend stocks and REITS. With all those considerations, here’s the portfolio allocation i’ve decided on. (1) Foundation - 30%: US Broad-based ETFs (I.e., VOO) 10%: Ex-US Developed Market ETFs (I.e., VIU) (2) Growth - 20%: Emerging Markets ETFs (I.e., IEMG) 15%: Thematic ETFs across AI/Circular Economy/Healthcare Innovation/Agricultural Innovation (3) Safety - 10%: Global Dividend ETF 10%: Global REITS ETF 5%: Physical Gold/Gold ETFs What are your thoughts on this? Feel free to be crude! Happy to have any flaws in my logic being pointed out. Would love to hear if any of you have a similar investment philosophy, or advice for me! Thank you!! 😬😬
Hi Redittors! I’m quite a newbie at long-term investing, and I wanted to seek everyone’s input on a portfolio allocation strategy i’ve recently constructed. Briefly for context, I’m still in my 20s and have a long time horizon so I wanted an aggressive portfolio to maximise my profits. A few beliefs i’ve subscribed to are: (1) To Invest in the best while keeping stakes in the rest. I believe in going heavier in US stocks as it’s the prevailing leading economy, but also to diversify across other geographical sectors to minimise exposure risk. (2) Emerging markets such as India and China are poised for significant growth in the next 20 years. Therefore I believe in separately purchasing an Emerging Markets ETF to increase their weightage in my portfolio, as opposed to opting for a global ETF which includes a minority stake in the emerging markets. (3) To ride mega trends to maximise profits. I believe that certain sectors such such as AI, Automation, Healthcare, Circular Economy, and Agricultural Innovation will grow in the coming years, driven by global trends such as technological advancements, aging populations, overpopulation, and increasing risk posed by climate change. Therefore, I believe in purchasing thematic ETFs to increase my weightage in sectors I believe in. (4) That Bonds are no longer the best hedge against economic downturns given the current interest rate environment. I believe in replacing bonds with stable global dividend stocks and REITS. With all those considerations, here’s the portfolio allocation i’ve decided on. (1) Foundation - 30%: US Broad-based ETFs (I.e., VOO) 10%: Ex-US Developed Market ETFs (I.e., VIU) (2) Growth - 20%: Emerging Markets ETFs (I.e., IEMG) 15%: Thematic ETFs across AI/Circular Economy/Healthcare Innovation/Agricultural Innovation (3) Safety - 10%: Global Dividend ETF 10%: Global REITS ETF 5%: Physical Gold/Gold ETFs What are your thoughts on this? Feel free to be crude! Happy to have any flaws in my logic being pointed out. Would love to hear if any of you have a similar investment philosophy, or advice for me! Thank you 😎
\*\*Personally, I'd make a pie chart spread with VOO as the anchor...then adding a few other indexed ETF's for overall market and some foreign/int'l exposure. Something like: VOO (S&P 500 / U.S. Large cap) - 40% VO (U.S. Mid cap) - 15% VB (U.S. Small cap) - 15% VEA (Int'l/Foreign blend) - 22% VWO or IEMG (Int'l Emerging Markets) - 8% I'm not a fan of anyone under 50/55 yrs old having exposure to Bonds (fixed income). If you feel an overwhelming need to have some fixed income in your portfolio, then reduce some of the above percentages equally and add in a bit of Vanguard's BND (10-25% max). If retired or very close, dialing that number up to around 50% is a safe and not outrageous idea. Remember - most people nowadays live well into old age, so ensure to have some exposure to equities (the stock market) even in your golden years. \*Fidelity, Charles Schwab and a few other online brokerages also offer numerous cheap/easy index investment options.
\*\*Personally, I'd make a pie chart spread with VOO as the anchor...then adding a few other indexed ETF's for overall market and some foreign/int'l exposure. Something like: VOO (S&P 500 / U.S. Large cap) - 40% VO (U.S. Mid cap) - 15% VB (U.S. Small cap) - 15% VEA (Int'l/Foreign blend) - 22% VWO or IEMG (Int'l Emerging Markets) - 8% I'm not a fan of anyone under 50/55 yrs old having exposure to Bonds (fixed income). If you feel an overwhelming need to have some fixed income in your portfolio, then reduce some of the above percentages equally and add in a bit of Vanguard's BND (10-25% max). If retired or very close, dialing that number up to around 50% is a safe and not outrageous idea. Remember - most people nowadays live well into old age, so ensure to have some exposure to equities (the stock market) even in your golden years. \*Fidelity, Charles Schwab and a few other online brokerages also offer numerous cheap/easy index investment options.
\*\*Personally, I'd make a pie chart spread with VOO as the anchor...then adding a few other indexed ETF's for overall market and some foreign/int'l exposure. Something like: VOO (S&P 500 / U.S. Large cap) - 40% VO (U.S. Mid cap) - 15% VB (U.S. Small cap) - 15% VEA (Int'l/Foreign blend) - 22% VWO or IEMG (Int'l Emerging Markets) - 8% I'm not a fan of anyone under 50/55 yrs old having exposure to Bonds (fixed income). If you feel an overwhelming need to have some fixed income in your portfolio, then reduce some of the above percentages equally and add in a bit of Vanguard's BND (10-25% max). If retired or very close, dialing that number up to around 50% is a safe and not outrageous idea. Remember - most people nowadays live well into old age, so ensure to have some exposure to equities (the stock market) even in your golden years. \*Fidelity, Charles Schwab and a few other online brokerages also offer numerous cheap/easy index investment options.
\*\*Personally, I'd make a pie chart spread with VOO as the anchor...then adding a few other indexed ETF's for overall market and some foreign/int'l exposure. Something like: VOO (S&P 500 / U.S. Large cap) - 40% VO (U.S. Mid cap) - 15% VB (U.S. Small cap) - 15% VEA (Int'l/Foreign blend) - 22% VWO or IEMG (Int'l Emerging Markets) - 8% I'm not a fan of anyone under 50/55 yrs old having exposure to Bonds (fixed income). If you feel an overwhelming need to have some fixed income in your portfolio, then reduce some of the above percentages equally and add in a bit of Vanguard's BND (10-25% max). If retired or very close, dialing that number up to around 50% is a safe and not outrageous idea. Remember - most people nowadays live well into old age, so ensure to have some exposure to equities (the stock market) even in your golden years. \*Fidelity, Charles Schwab and a few other online brokerages also offer numerous cheap/easy index investment options.
Thoughts about this mix from a financial advisor I consulted through a free benefit at work? This is for my 401k and brokerage mix. IVV - iShares Core S&P 500 ETF 49% VO - Vanguard Mid-Cap Index Fund ETF 14% VB - Vanguard Small-Cap Index Fund ETF 7% VEA - Vanguard Tax Managed Fund FTSE Developed Markets ETF 20% IEMG - iShares Core MSCI Emerging Markets ETF 10% He gave me a seemingly simple rebalancing formula to do it myself as things change. A coworker told me I should just do a target date fund and call it a day? Also my 401k is with fidelity and brokerage is with E*Trade (all of my brokerage is SWPPX rn, so he’s counting that as part of the 49% with S&P trackers)
The only minor thing I would think about is you probably could just use VTI/VXUS or whatever combo you want to use like swtsx/vxus at schwab to get global exposure as opposed to using schwab active fund that has pretty high er which is basically using index funds. SWISX is an odd one that you would have to pair with IEMG to get complete coverage, since for some reason swisx+ SCHE/VWO leaves out south korea and one of the largest companies in the world Samsung.
Out of morbid curiosity I started cross referencing your funds against the SP500 (the benchmark for "THE MARKET") and saw that since March of 20, the SP is up 29%, but IEFA is up 0.22% and IEMG is down 9%. That's really I all I needed to see. Cross reference your own numbers against the SP500, and dump these shitty funds and just buy the SPY fund and call it a day.
I buy ITOT, EFA, and IEMG. Why try to pick stocks/sectors/ countries when I can own them all?
VXUS is the world, which means it's 25% emerging markets, while SCHF is developed countries only. In my opinion it makes sense to limit exposure to emerging markets because the Chinese and Indian governments are god awful, so I recommend SCHF with some IEMG (or none). Other people think it's stupid to try to be smarter than pure market cap.
There is no guarantee of anything but if you're worried about America there's EFA and IEMG.
Do you think it's a good time to buy IEMG? Looks like it might be recovering from last year now.
I come at this as a novice US based investor. So I will let some more experienced folks comment on the finer details of your plan. However, I know enough to identify significant overlap in your fund selection. VXUS and VEA have a 73% overlap and IEMG also has overlap with these two funds. So you really aren't getting the percentage breakdowns that you might think at first glance. ​ VTI for your US portion. If you wanted to track along the worldwide market distribution, it would be about 60% VTI and 40% VXUS.
Hi all, I'm new to investing and I'm yet to make my first real investment. I'm hoping that you guys can give me some advice. Despite never investing, I've been saving in cash ISAs for most of my life and currently have around £150k saved. I'm 30 years old and based in the UK. I have a background in economics but have never really delved into finance. As such, I have a limited understanding of the framework that I should be using to assess investment options. I decided to experiment by kicking off my research with a conversation with chatGPT. I explained that I'm likely going to need to withdraw £100k within the next 2 years for a property purchase but the timing of this is uncertain, it may not even happen. I also explained that the remaining £50k can be invested longer-term (no foreseeable time limit). I currently have an easy access cash ISA that pays 3.2% and any earnings are tax-free. I've also opened a 1-year fixed rate ISA that pays 4.25% but I'm yet to make a deposit. The withdrawal fee from the fixed-rate account is the equivalent of 60 days' interest on the amount withdrawn before maturity, which I may need to pay if I utilise this account and end up purchasing a property before it matures. Based on this information, chatGPT recommended that I keep £100k of my funding in cash ISAs, for easy access in the event of a property purchase - with a split of £20k in my easy access ISA and £80k in my 1Y fixed ISA. For the remaining £50k, chatGPT recommended investing in ETFs. The latter recommendation is based on my low to medium risk appetite and my objective of maximising my return:risk ratio. When asked which ETFs chatGPT would recommend, I was advised to invest £50k as follows: \- 40% in the Vanguard FTSE All-World ex-US ETF (VXUS) \- 30% in the Vanguard FTSE Developed Markets ETF (VEA) \- 20% in the iShares Core MSCI Emerging Markets ETF (IEMG) \- 10% in the Vanguard Total Bond Market ETF (BND) I also plan on investing any future savings into the same portfolio. Thought you guys might be interested in the advice that chatGPT is giving (with lots of sensible caveats, of course) and I'm definitely interested in hearing your opinions on this investment strategy.
I agree, IEMG has been good for me over the past year. Hopefully it keeps on truckin’.
The components of XEQT are : XEF ITOT XIC and IEMG (Emerging Markets, or a cover for mainly Chinese stocks) so you could buy XEF ITOT and XIC seperate from IEMG, which would cut all or most of the Chinese exposer and if you want other 'emerging markets' do your research into what countries you want to be exposed to and the similar or other risks that come with that there are other country specific etfs like EGPT KSA EIS UAE EIDO. but I'm almost completely in US equities because I trade and don't want to be confused with foreign tax complication.
What about IEMG or VWO? BICS (Saudi Arabia) seems to be pretty heavy
I have one. Show the global stock market and which ETF covers what. For example, VWO, EEM, SCHE, IEMG all cover emerging markets. 25% of all non US stocks are emerging markets. Combine that with 75% developed markets like with SCHF and you get all non US stocks like VXUS. Combine that with total US in a 60/40 ratio and you get total world stocks. Total US can be split into large, mid, and small cap. Or it can be value, growth, or blend. Or you can do it by industry. You can slice and dice markets many ways, but a site where it all comes together would be helpful. I’m thinking about making one like this myself someday.
I think most of this looks pretty good, especially for a younger person. A couple points: IEMG makes me nervous with the Chinese and Taiwanese exposure. While I think it is doubtful China will actually invade Taiwan, they could get more belligerent, and even try to blockage the country. The CCP of Xi is hostile towards business to boot, and I think there could be extreme volatility in that part of the world, and catastrophic stock losses. You may want to look at something that is more focused on India, Africa, etc. For me, having 2% in crypto means you will lose 2% of your portfolio. Crypto is not an investment, should not be looked at as a holder of value (limited supply of nothing), and cannot be used as currency (inherently deflationary, subject to capital gains, too volatile, and lives within an ocean of fraud). I strongly recommend getting out of that "space"
But I do think I will ditch the Int Developed fund and just do VXUS, IEMG, AVDV for foreign equities segment.
28 y/o, pretty risk averse and would love some brutally honest feedback. More of a "set it and forget it" kind of person, but I want to make sure I'm on the right track. FXAIX - 50% FSMDX - 16% FSPSX - 16% AAPL - 7% FAGIX - 4% IEMG - 2% FECGX - 2% BB - 1% CRLBF - .2%
50% ITOT 20% IEMG 10% EFA 10% VTV 10% IJS value tilt and international diversification. Set it and forget it.
SPY is as good as any. Instead of just buying one, consider spreading your funds across multiple ETFs and check in every few months. Take profits on funds that went up and add to funds that went down to ‘re-balance’. This is what professional money managers charge enormous fees to do. Some tickers to consider to get started: SPY QQQ IWM DIA (these first 4 are US indices and are closely correlated) GLD TLT XOP VT IEMG.
For me, the one con with single funds like VTI is they are over concentrated in the most massive companies. And it lacks international exposure. Since I desire more diversification than that, and opportunity for greater growth, I have constructed a standard portfolio, still using low cost ETFs. So for US equities, instead of VTI, I would do 1/3 each SPY, IJH, IJR (or any other low cost equivalent is fine). This spreads investments much more deeply into mid and small caps, both increasing diversification and long term growth potential. For ex US I use a mix of IEFA, SCZ, IEMG.
First time poster, so please let me know if I left anything out! I am about to close on selling my condo and will be walking away with about $180-$190k cash after payoffs, commissions, closing, etc. I figure I have a couple options: 1) buy another investment property with 25-30% down, @ $250k purchase price, use the remainder pay off debt, 2) Pay off debt, invest the rest, 3) Invest it all, or 4) pay off non-zero debt, put $50k in savings, invest the rest. My #1 goal in life is to retire early. I'd like to be retired comfortably in my 50's. I see too many burned out adults working well into their 60's and I just don't want that. I'd like a "second" career rescusing, fostering and rehabbing animals once I retire from the corporate world, which I know makes no money, so I am trying to save as much as I can now. Would love some ideas and suggestions!! **How old are you? What country do you live in?** 35 years, USA **Are you employed/making income? How much?** Yes, \~$300k (with RSUs and bonuses) **What are your objectives with this money?** Retirement savings in order to retire in next 15 years. **What is your time horizon?** 15 years **What is your risk tolerance?** Risk seeking given time horizon, fine to take more risk. **What are you current holdings?** * Personal brokerage = $126k --> various stocks, ETFs, mutual funds. (AAPL, AMZN, TSLA, META, YUM, IEMG, SPY, UMDD, VOO, VTI, VTSAX, and a couple others) * Robo-advisor brokerage = $5400 * Robo-advisor Roth IRA = $17k * Robo-advisor IRA = $30k * Robo-advisor IRA (rollover) = $24k * Cash savings = $2800 **Any big debts (include interest rate) or expenses?** * Credit card (balance transfer) 0% = $27k, payment = $1500/mo; * personal loan (5.98%) $14k, payment = $665/mo, * Car loan 0% $16k, payment = $690/mo. * Mortgage/insurance (my portion) = $2325/mo. * Travel not covered by employer \~$1200/mo * Investment property mortgage/HOA/maintenance = \~ $3850/mo (income is $4390)
Unless one is trading options, VWO and IEMG are better funds due to much lower expense ratios.
I'm lazy. I have 5 funds, and just roll with that. 50% ITOT for broad exposure, 20% EFA for developed markets ex-USA. 10% IJS for small cap, 10% for IEMG for emerging markets, and 10% for VTV to small cap value. I've proven to myself that I'm garbage at picking stocks, like most individual investors and so I just buy everything.
FRDM is very legitimate. The founder is Perth Tolle and the fund is whitelisted via Alpha Architect's 'ETF Architect'. Alpha Architect and ETF Architect are run by veterans. So you have a fund run by veterans that believe in the values of the fund as well. And Perth Tolle is incredibly passionate about this fund. Recently interviewed on Bloomberg's July 1st episode https://www.bloomberg.com/podcasts/series/master-in-business She was also featured on Morningstar and many other media outlets. https://www.morningstar.com/articles/1082597/the-world-is-waking-up-to-autocracy-risk-thanks-to-russia-china [here's a backtest ](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2022&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&benchmark=-1&benchmarkSymbol=IEMG&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=FRDM&allocation1_1=100&symbol2=XCEM&allocation2_2=100&symbol3=AVEM&allocation3_3=100) showing how in recent times when other funds, more exposed to country risks, drewdown -FRDM was able to outperform them, one of very few Emerging Markets funds maintaining positive nominal returns through the recent couple of years. Note: for the factor regressors out there, note that the difference in country allocation alone makes any regression full of noise. That's before considering the short time period available for a regression.
>IEMG Based on how much net he is working with 20% in speculative stock picks can still be quite a large amount, while still protecting your ass.
20% IJS 20%IEMG 40%SPY 20% Stockpicks / Cryptos in brokerage. 100% VT in IRA
Started December 2021 at age 33 in ITOT, IXUS, QQQM, AVUV, IEMG, and BNDW. Have been in the red ever since, but still DCA in mostly ITOT and IXUS every week. I'm holding for 30 years and not worried about my picks, though I'll eventually consolidate into the three-fund portfolio along the way. My husband started April 2021 at age 33 in crypto and individual stocks. He hasn't sold anything, but he stopped looking at his investing apps when they became a bloodbath. This is after he made fun of me for going with "Boomer investments" in index funds and ETFs. Now he gets sheepish and queasy when I tell him to pull up his portfolio and compare it to mine.
Yes. I was sitting on the sidelines with a solid amount of cash. I felt FOMO not buying large tech stocks while people made huge gains in TSLA, ARKK and AAPL and what not but I knew the best way to invest is with your head not your heart. I sat myself down and knew if I invested I was chasing hype and I wasn’t comfortable risking it. Now a few months later I feel validated in my choice, and Ive decided to go with my head and buy SPY 60% IJS (SCV) at 20% and IEMG (emerging markets) at 20% because my head is telling me last time markets were in these conditions those asset asset classes I tilted towards our performed. I’ve been called an idiot for doing this but I’m not listening to the buzz anymore where the same people calling you an idiot for not being in tech last year are now all hurting.
60% SPY, 20% IJS, 20% IEMG. How’s this allocation?
I have like 14 etfs. I loke picking stocks and i want to stsy close to s&p allocations. Except no financials. And heavy reits and consiner disc. But when it comes to health care i have no idea, so etf. Which cannabis company will be best? Idk so etf. Materials etf. Cyber security etf. You get the point. Sometimes its whole industry some times its very specific. Also have DGRO SCHD SPHD and IEMG. If it feels right to you then do it. I like this way and i feel its smart. When things are hot and all time highs i stoo buying. Ehen they are low or dipping i buy them. When everything was high october-november i didnt buy anything. This week im buying maany things and making small purchases into them. Unless it turns out i suck ass at this in 10 years i cant foresee me changing from this strategy.
First off, congratulate yourself for doing your retirement contributions and planning for the long run. Also, for mostly sticking to major indices and getting a mix of international, large, and small cap. I'd adjust your allocations on domestic to be 2/3 of a large cap (or S&P 500 fund), 1/6 the small cap, and 1/6 a mid-cap, but that's nitpicking. I might add a developing market fund, like IEMG, but...you've got the right idea. Your other 25% of taxable...eh, for your goals, it wouldn't be my style, but it's a small portion of your overall, so if you want it because it's fun, it's probably not going to prevent you from retiring from 60 and would scratch that itch. But main message: you're doing it right. Just keep on keeping on, and you'll be where you need to be at 60 -- earlier perhaps, but at least by then.
Started investing in SPY in summer 2019. Realized the pandemic was going to crash the market, sold almost at the top in 2020. Could've made a killing if I'd bought near the bottom. The real problem was I didn't truly believe in what I was buying, I was just doing "buy index funds and don't look". Did a lot of reading and research since then and believe emerging markets are where money will be made long term. Been averaging down in IEMG and BABA. TLDR Have a strong belief in what you buy
With $2B in assets, they could lower the ER a bit. Here is iShares Emerging Markets ex China and their overall emerging markets ETF: https://etfdb.com/etf/EMXC/#etf-ticker-profile [https://etfdb.com/etf/IEMG/#etf-ticker-profile](https://etfdb.com/etf/IEMG/#etf-ticker-profile)
My prediction is due to coming US stagflation money will gradually shift towards other markets particularly emerging markets like China India. Anyone else have thoughts? I'm long EM ETFs like IEMG
Some more Russia stuff: ETF edition > JUST IN: Blackrock is halting creations for its Russia ETF (ERUS) and has removed all Russian stocks from all its creation baskets, incl big dogs like $IEMG & $EEM, altho the stocks will remain in the funds. VanEck (RSX) still open for now altho is using special baskets. https://twitter.com/EricBalchunas/status/1498637829672476672 > Meanwhile, a slew of Russia mutual funds are halting redemptions. Altho big dif bt MF halting redemptions and ETF halting creations: with ETF you can still get out, albeit have to take the price they giving. with MF you cannot get out. Not saying one better/worse, just they dif https://twitter.com/EricBalchunas/status/1498646176505241600
The US has stated it will not be impacting the Russian energy market - and that's how Europe prefers it. General sanctions on the Russian economy are unlikely given current conditions. IEMG has only 2% Russian companies, so the risk isn't that high. A more serious risk is large Chinese tech companies, since China is over 25% of emerging markets. https://etfdb.com/etf/IEMG/#charts
> I suggested value, shorting bond yields and buying internationally. Since then IVE (value) +2.5% TBX (short treasuries) +2% IDEV (developed int'l) -4% IEMG (emerging) -4% and of course for comparison SPY (unchanged) Interesting victory lap you seem to be taking.
Hahaha! True that. VXUS is a very nice ETF. For broad based foreign exposure ETFs, I like VXUS (large cap heavy), IEMG (emerging markets), and FM (frontier markets), in a 2:1:1 ratio. Someone on Reddit turned me onto GVAL, which is a really interesting, albeit low volume, foreign ETF whose exposure differs greatly from others I’ve seen. I’m considering opening a small position. Here are some stats on it: - average P/B of 1.1 - average P/E of 11.7 - yield around 3% with a 0.7% expense ratio - about half developed and half emerging economies - generally even spread between large and small caps, concentrated towards mid cap. - * only 124 million AUM - but here is where it get’s interesting, it’s top ten country exposures are: 1) Poland 2) Czech Republic 3) Austria 4) Russia 5) Spain 6) Greece 7) Portugal 8) UK 9) Singapore 10) Turkey (Obviously a couple of those are in...uncertain times). The fund takes an approach similar to my own method of finding individual equities on foreign exchanges. Anyways, curious your thoughts. Thanks.
SPY (50%), VTI (30%), IXUS/IEMG (10%), BRK.B (10%) is basically what I do in my boring port. Love to gamble, but obviously not gamble all my monies...
Why would you choose to try to pick out stocks from different countries that are companies that you have no clue about from country's whose financial system you have no clue about with currency implications you have no clue about all while taking on geopolitical risk you have no clue about? If there is EVER a great argument to index (buy the haystack) it is in the EM realm. BTW, I do love EM as well. Just do VWO or IEMG (tax harvest between the two is what I do).
Those baskets are called Emerging Market ETFs. Look at VWO and IEMG.
Agreed. It isn’t that difficult to have a more blended approach, with a significant portion of foreign exposure broken between large cap, emerging markets, and frontier markets. My core index holdings consist of five ETFs—VTI, QQQ, VXUS, IEMG, and FM.
I use http://www.multpl.com/s-p-500-dividend-yield/table?f=m to obtain monthly dividend yield. I've never seen any data on precise payment of index dividends though so I just assume they are equally distributed at the end of each month. I've used Ken French's size portofolios to approximate small (Size Quantile 2) and mid cap (Size Quantile 4) indices. VEIEX is a good proxy for EEM or IEMG emerging market index funds that goes back to 1994. FDIVX is a developed ex-US fund that goes back to 1991. NAREIT Composite Index has daily data back to 1971 for REIT index.
VOO with IEFA for international exposure and IEMG for emerging markets are going to make for a nice well rounded portfolio.
**How do index funds work exactly? Does "tracking" an index mean the holdings increase in proportion to that company's growth? Do they sell shares in companies that grow less than others?** Common advice for newbies - or anyone who doesn't want to spend 20 hours per week on their portfolio? - is to buy index funds. These are synonymously called [tracker funds](https://www.investopedia.com/terms/t/trackerfund.asp), right? What does the phrase mean "to track an index"? For example: > The investment [iShares Core MSCI Emerging Markets ETF, IEMG], seeks to track the investment results of the MSCI Emerging Markets Investable Market Index. Does "track the investment results" mean if a company's market cap expands from A to B, the total holdings of that company will increase from A/sum(total holdings' market cap) x 100% to B/sum(total holdings' market cap) x 100% for the fund? I'm trying to learn how exactly these funds are managed. It sounds as if they tend to buy high (to increase holdings in profitable companies) and sell low (to decrease holdings in unprofitable companies), thereby potentially missing out on undervalued companies' future profits. **Would you please clarify, explain how they work, and give a reading recommendation?** I must learn these matters to manage my own portfolio (building my own quasi-index fund, basically), because I think we have a moral imperative to avoid investing in numerous companies that are in every common fund I encounter (*e.g.* tobacco, sugar, some tech, some drug companies). (P.S. This post was automatically deleted when I tried posting it top-level...)
IEMG etf ready to rocket...heavy BABA
International exposure is good (~20% of portfolio) VXUS, or emerging markets for more risk/reward IEMG. SPY doesn’t cover small / mid caps much, or could tilt your portfolio towards more weight at the top with some QQQ.
With Fidelity I have more than 3 holdings but to capture what you are asking I think my 3 largest holdings do pretty well ITOT, which is about 50% IEFA, international developed companies is about 15% And IEMG, emerging markets, about 10%. The last one has the highest expense ratio at only .11% Other holdings include some S&P Value and TIPS. It's a pretty simple portfolio but those top 3 really cover the bulk of equities you'd want to own.
Yeah just lateral move to a comparable ETF would be fine, e.g., VWO to IEMG or VTI to SPY.
I have no insight into the funds you listed, but I used to use IEMG and VWO. Although now I just use VXUS and let the chips fall where they may.
I go with IEMG. Many here are concerned about China, if you share that concern a mix of IEMG and EMXC (emerging markets minus China) is worth considering.
IEMG, VWO, or SPEM and call it a day.
It is a good choice and covers all developed markets at market weight. You might want to add in a small portion of IEMG to cover emerging. https://www.ishares.com/us/products/244050/ishares-core-msci-emerging-markets-etf
Not quite everything. I added small amounts of VWO and IEMG. I only had to add IEMG because Vanguard thinks South Korea is a developed market. Compared to other developed markets that's laughable but whatever, IEMG has a similar expense ratio.