Vanguard Pacific Stock Index Fund

[Craig]

We've been accumulating some cash at Vanguard, and beginning to DCA into some international / global index funds ... historically, we've had too little international in our mix. Three base funds seem to make up their offerings, with those wrapped by a couple other funds ... Emerging Markets Stock Index (VEIEX), European Stock Index Fund(VEURX), and the Pacific Stock Index Fund (VPACX). While I have concerns we're a little late to the party, I also tend to think foreign investments will continue to be attractive for the future.

The first two funds have decent track records, but the Pacific fund is anemic ... not surprising considering the tough sledding the Japanese have had for some time.

I'm tempted to simply put 33% into each fund, and rebalance at the end of each year. Would be interested in your POV on these funds, your own international perspective, the Pacific fund, etc. Thanks.

 

[cute fuzzy bunny]

Those are my 3, a third to each. I figure Japan will "get it" someday and that could be the biggest plus. As they sing: the waiting is the hardest part. I think emerging market has had its day recently and may be a bit slow for the next couple of years.

There is also a foreign 'value' fund which I keep meaning to look at and some kind of total foreign market fund. I've looked at the latter but their weightings, which sensible, may not be good for the slicer and dicer...mostly europe, a chunk of japan, and a smidge of emerging market.

If you're doing this in a taxable fund, there is also a tax managed foreign bucket fund, but its a dog.

 

[lazyday]

My favorite of the three indexes today is the Pacific one!

A third into each and rebalancing sounds sensible to me, although that means overweighting EM compared to world weights. (I'm not a slice&dicer; not talking from experience.)

If you like active funds at all, DODFX Dodge&Cox Foreign is an option, ER about .7-.8. Would give a value tilt. Could use it instead of the Europe Index, though will then change the allocation. If you wanted about 1/3 Eurpoe, could do the math for what % in each fund each time you rebalance.

 

[uncledrz]

good way to get a broad based international exposure.

 

[WilliamG]

We converted Total International Index to these 3, equally weighted, about a year ago. If you like Coffee House approach, ie. don't discriminate between asset classes, I think (hope now that we have!) this is the way to go. Probably makes more sense not to market weight intenational than US; eg. witness the Japananese meltdown of past decade.... bill

 

[wildcat]

The laggard (Pac Index) could become the leader over the next few years. I also have Dodge & Cox Intl and they are one of the few actively managed shops that I like out there. Value approach, low turnover (very low) and attractive expenses. The fund is relatively new but their flagship Dodge & Cox has been around a long time and has a good record.

 

[azanon]

Sounds great Charles. I have a nice healthy international stock exposure myself, though i'm not in emerging markets atm. I'd like to be someday though when the prices hopefully discount some.

 

[Craig]

Super ... thanks for all the feedback, and tips. Will check them out. Have a great week.