VTMGX
VANGUARD DEVELOPED MARKETS INDEX FUND ADMIRAL SHARES
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Limited International Fund Options in Employer’s 401K Plan?
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My positions aren’t static and held in several different brokerages. The largest is the federal TSP I fund, which mirrors the MSCI ACWI IMI ex USA ex China ex Hong Kong Index. My main brokerage account is in Vanguard Developed Markets Index (VTMGX) and Vanguard Total International Bond (BNDX). Individual holdings are limited to BRK.B, GLD, SLV, and some AAPL that I’d owe huge cap gains on if I sold.
I didn't have many options as they are provided by the 401k provider, the options were VEUSX, VTMGX, VFWAX, VPADX, VTIAX, VIAAX, or VFSAX. I choose Vanguard European Stock Index Fund Admiral Shares (VEUSX). You have to decide what is best for your risk tolerance and when you plan on retiring. ABOUT: This index fund provides investors low-cost exposure to the European stock markets. The fund holds more than 1,200 stocks across the European region, which makes up roughly half of the non-U.S. equity marketplace. In addition to stock market risk, the fund is also subject to currency risk and may have a higher degree of country risk than other international funds, since it invests solely in stocks of European countries. Long-term investors seeking exposure to European equities may wish to consider this fund as part of a diversified portfolio.
You haven't lost money until you sell, you simply own an asset that has gone down in value. Selling locks in the loss. The stock market lost *half* its value in 2008 and it took a couple of years to rebound. People saw their accounts plummet, but if they stayed invested they eventually rebounded. Meanwhile, they were either getting cash dividends or they were re-investing those dividends at a lower price. What you should do depends on your horizon. If you're 55, you shouldn't be all in on the S&P. If you are 25, this is a moment to ride out. Moments like this are why target date funds are popular. They have lost less value than the S&P because they are not just the S&P. What you could do instead of rebalancing is to change how you invest additional money. You could go for a target date fund or do a year or two of straight international. If you are using Vanguard, VTIAX is total international and VTMGX is non-US developed markets.
>but I’m wondering if I should consolidate the money in my VSIAX, VIMAX, VTMGX (and possibly even VTIAX and VBIAX) into VTSAX and and VFIAX Consolidating can be good. However, I wouldn't use this combo. VTSAX already fully includes VFIAX as over 80% of its weight. Recent years have favored larger caps over small, but there's plenty of times where it was small leading the way. You'd also be taking on uncompensated risk of single country (I can pay links explaining this if needed), since both are US only. There's been plenty of times where it was the US trailing international. >Are VTSAX and VFIAX diversified enough for a long-term strategy? I'd say no, in fact it is less diverse than VTSAX alone. But even VTSAX, I'd pair with VTIAX. See this for one example: https://www.bogleheads.org/wiki/Three-fund_portfolio The bonds are the part that adjust risk level. More bonds equals less risk. >Can I transfer between funds without paying tax? It depends on the account type. The IRA and TSP would be yes, the taxable brokerage is no.
If you add an extra space (line) between each bullet point, it makes it easier to read. TSP): * 10% TSP Lifecycle 2060 & C Fund * 30% VTSAX (total) * 25% VFIAX (500) * 10% VBIAX (balanced) * 10% VTIAX (international) * 10% spread between VIMAX (mid-cap), VSIAX (small-cap), and VTMGX (developed) * 5% spread in some large cap stocks
Any target date series? >VINIX - Institutional Index Fund >VSMAX - Vanguard Small Cap Index Adml >VSIAX - Vanguard Sm Cap Val Index >VTMGX - Vanguard Dev Market Index >VBTLX - Vanguard Ttl bd Mkt Ind Adm 4 out of the 5 of these could be a good approximation of the 3 fund concept (choose 1 of the 2 US small cap funds). https://www.bogleheads.org/wiki/Three-fund_portfolio VBTLX controls risk. Set it depending on your risk tolerance, just be aware that there's a number of people that over estimate their risk tolerance. No emerging market fund?
Just buy a heavily diversified index fund with a low cost. VOO, VFV, SPY, IVV, VTIAX, VTMGX, etc. etc. With this, you own a small portion spread across tons of different companies. Diversification is good. Your post maybe implies you're trying to actively trade stocks and just don't. You don't know what you're doing. Hedge funds hire dozens (if not 100s) of some of the smartest minds on the planet, with institutional trading advantages you don't have, and the large majority still don't beat just buying an index fund. Spend your time increasing your earnings and in self-improvement, not trying to be smart in the stock market.
As others have mentioned, the main benefit of Wealthfront is tax-loss harvesting, but you can do this yourself without much difficulty, so I don't think it makes sense to move any money there. Are you familiar with tax-loss harvesting? If so, you can ignore the rest of what I'll write. If not, it's just a basic piece of portfolio maintenance for taxable accounts. The first step is to set the cost basis in your taxable account to SpecID. This allows you to select specific lots when selling or exchanging funds. After that, it helps to turn off dividend reinvestment, as that can cause wash sales (a temporarily disallowed loss). Wash sales are not illegal, but they reduce the benefit of tax-loss harvesting. We have the dividends sent to our checking account to be spent or reinvested later, but you can send them to a money market account or elsewhere if you prefer that instead. From there, select one or two tax-loss harvest partners for your taxable investments. For VTSAX, VFIAX or VLCAX will probably work. For VTIAX, you can use VFWAX or VTMGX. When markets are down significantly, take a look at all of the individual lots for each of your funds. Select all lots with losses and exchange them for one of your tax-loss harvest partner funds: example - VTSAX for VFIAX. If, in the future, your tax-loss harvest partner fund also suffers a loss, you can exchange those lots again for your third partner fund. If your third fund also suffers a loss, and 30 days have elapsed since your first exchange, you can then exchange back into your original fund. Good luck.
Thanks. I actually had a typo on the VTMGX- it’s actually a unique fund for this plan (no ticker). But it says it tracks the FTSE All Cap ex US Index. 4004 stocks, 0.04% expense ratio. I think I was nervous because it started in 10/22, but it’s probably fine right? I looked at the country diversification, and it looks similar to VTMGX (mostly Japan and UK). Why 80/20? Is that your preference for US/International or are you saying because VTMGX is only developed countries, I should do more in domestic stock? Do you think I’ll miss out by not having emerging markets?
Honestly 80% VITNX 20% VTMGX If JLGMX expense ratio wasn't .94 then would say give it a steroid shot of growth.
Thanks. I actually had a typo on the VTMGX- it’s actually a unique fund for this plan (no ticker). But it says it tracks the FTSE All Cap ex US Index. 4004 stocks, 0.04% expense ratio. I think I was nervous because it started in 10/22, but it’s probably fine right? I looked at the country diversification, and it looks similar to VTMGX (mostly Japan and UK). Do you think I’ll miss out by not having emerging markets?
To answer your question. Top choice VTMGX .05 expense ratio and a nice 3.16% yield. It also follows an index according to Morningstar. GERIX is 1.65 expense ratio (NOPE) MINJX is 1.78 expense ratio (NOPE) VWILX is .31 expense ratio (maybe)
For my company retirement plan I chose 10% VTMGX, 15% VSMAX, 75% VFIAX. There weren't a lot of other options aside from high expense ratio target date funds, but what do you think of my setup? Basically 10% of each paycheck is going to those 3 funds, roth ira.
>The goal isn't to mimic total market but to get best returns. No other options listed had nearly as good of returns as Historic returns in general don't mean much, many studies have shown that the best performing portfolios over the long term are total market portfolios\* >Plan offers for international: Obvious disclaimer to do your own research and don't blindly listen to internet people, but in general you want at least 30% international diversification. A cursory search of those international funds shows that VTMGX is probably fine for that purpose. So you'll want ~70% US of which 85% is VFIAX and 15% is VSMAX, and 30% international of which 100% is VTMGX \*there are complicated ways to beat a total market index fund portfolio such as through leverage of factor investing, but they are more risky and not fully acceptable as robust respectively
Hello, I'm looking for a good international index/mutual fund to balance out my domestic focused portfolio. The two I'm considering are VTIAX and VTMGX. I'm looking for it to be of similar quality/risk as VTI total stock fund. Also, what percentage of my portfolio would you recommend I allocate to international. For reference, I'm 23 with medium-high risk. I'm investing heavily as I'm currently doing FIRE. Thank you!
Value stocks in general seem like amazing "value". AVUV, AVDV, and AVES all with PE ratios below 10. I think value stocks will significantly outperform large cap growth and tech in the near to mid term. Personally, I am value tilting fairly hard, with a portfolio as follows: 1. 30% - NTSX 90/60 S&P 500/Treasuries; 2. 20% AVUV – Avantis US small cap value; 3. 10% VMVAX - Vanguard Mid-Cap Value Index Adm; 4. 14% VTMGX - Vanguard Developed Mkts Index Adm; 5. 14% AVDV – Avantis International small cap value; 6. 6% VEMAX – Vanguard Emerging Mkts Stock Idx Adm; 7. 6% DGS - WisdomTree Emerging Markets SmallCap Dividend Fund. Rebalanced quarterly.
I would agree with this if not for ‘08. That was a US economic crater. Caused by the US housing market bubble killing the US consumer’s financial well-being. In the 2008 crash the S&P 500 was down 57% from high to low (1562 to 666). VTMGX (Vanguard’s developed markets index fund) was down 59% from high to low (16.79 to 6.82). This seems like the exact situation that diversification is trying to prevent, but the world economy is so interconnected today that if the US as the largest economy takes a hit it’s dragging the rest of the world down with it. International worked as a diversifier for most of the 20th century, but really since 1990 if you overlay a chart of the US market over the a developed markets fund (I’m looking at JP Morgan research which compares MSCI EAFE (developed markets ex US) to MSCI USA (page 47 in this PowerPoint https://am.jpmorgan.com/content/dam/jpm-am-aem/global/en/insights/market-insights/guide-to-the-markets/mi-guide-to-the-markets-us.pdf). Over the past 35 years international outperformed US for a 1.5 year period around 1993-1994 and a roughly 4 year period between 2003-2007. In exchange for these 5 years of hedging where you outperformed US by 36% and 64% you missed out on 3 periods of US outperformance of 99% between ‘88 and ‘92, 220% between ‘95 and ‘01 and 235% between 2010 and today. Modern portfolio theory was developed in the 1950s and it worked when it was created, but over the past 35 years which is a pretty good sample size including international hasn’t been a hedge. A hedge would mean negative beta, when the US market goes down, international goes up and vice versa, but over this time period when the US market goes up, international has been going up but not by as much, and when the US market falls international falls by the same amount.
Your IRA is fine, although I am not a fan of you buying a target date fund at 25. Even a 2060 fund is 10% bonds, which really don't need that young. I would dump the target date and put it into VTSAX and some into Vanguards International Developed Fund VTMGX (VEA in ETF form). You don't have much international exposure and having as much as 20% of your stocks in international can help hedge your portfolio a bit. ​ For your 401K I really need to know the actual fund names and/or the fees to give advice. Some target date funds have 12bp fees and are find and some have 60bp fees are not. A few thoughts. Small Cap Blend is kind of worthless. The factor load you want is small cap value, not blend, and I bet you are paying higher fees for it. The Large Cap Active, and Mid Cap Growth also probably have higher fees, unless they are Fidelity or Vanguard. I would replace them all with Large Cap Blend. Sitting on some cash is good to have as an emergency fund. 15K is probably a bit large, but I don't know your costs. Since you already have a big cash pile, you might want to try to work towards maxing out your 401K.
65% VFIAX, 5% VSMAX, 10% VTMGX, 20% VBTLX here. My peeps don't offer VTSAX.
If it was my portfolio I would go with VTMGX because of the lower expense ratio. I would also look into adding small and mid cap index funds or sometime they have a completion index that has both small and mid cap index funds. The asset allocation strategy I currently follow is a three fund portfolio minus the bond fund, I will allocate to bonds when I am closer to retirement. [https://www.bogleheads.org/wiki/Three-fund\_portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio) ​ How to approximate a Total U.S. Stock Market Index Fund: https://www.bogleheads.org/wiki/Approximating\_total\_stock\_market Topic of international: https://www.reddit.com/r/Bogleheads/comments/r3jdhi/as\_a\_us\_based\_investor\_what\_percentage\_of\_your/ Topic of bonds: [https://www.bogleheads.org/forum/viewtopic.php?t=328019](https://www.bogleheads.org/forum/viewtopic.php?t=328019) [https://www.fidelity.com/viewpoints/retirement/how-much-money-should-I-save](https://www.fidelity.com/viewpoints/retirement/how-much-money-should-I-save)
My 401k is currently 100% invested in a Vanguard 500 fund and I want to diversify a bit. Which of these international funds look good to add? There's no total world fund unfortunately. RERGX - American Funds EuroPacific Growth Fund® Class R-6 (.46%) RGBDX - American Funds Global Balanced R6 (.48%) ODMAX - Invesco Developing Markets Fund Class A (1.2%) VTMGX - Vanguard Developed Markets Index Fund Admiral Shares (0.07%) 30m, don't plan on selling out anytime soon.
An international is good. I like VTMGX because I want to avoid emerging markets and China - this one works great for me.
I put in the same every month. VTSAX and VTMGX. Like clockwork. * When the market is up, my investments are growing! * When the market is down, I'm buying at a discount! Just kidding, I don't even look anymore. I'm long. My whole philosophy is savings rate x time.
The best way to do it is to not look at the market at all. Set up automatic investing and just let it do its thing. I do 70% VTSAX and 30% VTMGX, but you do whatever fits your investment strategy.
This is part of why my international is [VGMTX](https://investor.vanguard.com/mutual-funds/profile/VTMGX) and [EMXC](https://www.ishares.com/us/products/288504/ishares-msci-emerging-markets-ex-china-etf). The other part for me is moral. I'm just not going out of my way to put money into totalitarian governments right now.
Probably the easiest way to do that would be to just invest in developed markets. You could just use [VTMGX](https://investor.vanguard.com/mutual-funds/profile/VTMGX) as your international index fund. You'd still have broad international exposure in a low-fee passive index fund. Take a look at the [FTSE developed markets group list](https://en.wikipedia.org/wiki/Developed_market#FTSE_Group_list) and see if they meet your criteria.
Oh, that makes more sense! Yeah, I've kind of shied away from emerging markets. I just eel like developed markets are more stable, I still feel pretty diversified with 26 countries, ect. But that's been something I've gone back and forth on, whether if I should have VTMGX or VTIAX. I know VTIAX only has 10% EM anyway, it's probably not a big deal to switch to total world. I don't know. Is your feeling to just go total world? Have exposure to everything?
Thanks. VTMGX is international though. It includes: Australia Austria Belgium Canada Denmark Finland France Germany Hong Kong Ireland Israel Italy Japan Luxembourg Netherlands New Zealand Norway Poland Portugal Singapore South Korea Spain Sweden Switzerland United Kingdom
I’m getting more and more boring. I’m just about: * VXUS (total US stock market) * VTMGX (FTSE developed markets Ex-US) I’ve been selling all of my other ETFs and reinvesting the money in those two.
One of my work 401k's has this as a below portfolio: VTSAX - 48% VTMGX - 21% VEMAX - 11% VBTLX - 11% VGSLX - 5% VTABX - 4% Is this a solid 401k for someone in their early 30's? I'm wondering if more mirroring the target date fund for 2055 would make more sense, which would have me consolidate into a 3 fund portfolio of 55/35/10 VTSAX/VTIAX/VBTLX.
Update: I'm thinking putting 50% into VFIAX, 25% into VTSAX, and 25% into VTMGX. These all have lower expense rations than VIVLX have performed better, and have no bonds. Thoughts?