International equities allocation

[LRAO]

I'm still building up and buying into my mutual funds so that I have the AA that I want, but I'm still a bit away from getting there. Once again, I'm 27 and my portfolio is 40% domestic equities, 40% foreign, 20% bonds.

Here's are my proposed set-ups:

Set-up 1
Vanguard Pacific Index
Vanguard Europe Index
Vanguard Emerging Index
Fidelity Latin America
Fidelity Canada
Fidelity Intl Small Caps

Set-up 2
Vanguard Total International Index
Dodge & Cox International

So, keep it simple or diversified?

[wildcat]

I know some people may bash me when I say this but I would take the simple route or maybe add one more fund if you so desire (intl' small cap). The first set-up is well diversified but there is, in my opinion, a point of saturation. I am sure some people will note that the additional funds will lower the std dev of your portfolio but to what expense and to what possible sacrafice of returns is my concern. FYI - I like the Dodge & Cox International fund and I own it. Excellent active mgt shop.

Also, b/c of your age, I would be prepared to change your allocation over time. The 20% bond allocation may not be so bad right now but if the equity markets get cheap I would drop back and go long in a heartbeat.