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Vanguard's New Broad International Index Fund VGTSX
Old 11-04-2010, 04:44 AM   #1
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Vanguard's New Broad International Index Fund VGTSX

I've been considering moving out of a higher cost int. value equity fund into a lower cost int. index and saw this. Any thoughts?


https://personal.vanguard.com/us/ins...ement-09272010
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Old 11-04-2010, 06:46 AM   #2
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My first thought is to look a bit closer at how the benchmark total international index weighs the Europe, Pacific and emerging markets components.

Generally, I'm inclined to keep my emerging markets allocation weighted higher than a pure market-value weight, so I would give some thought to comparing the proposed Ex-US index to a self-selected weighting between VDMIX (Int. Dev markets index, presently 2/3 Europe and 1/3 Pacific) and VEIEX (Emerging Market Index).

No strong feelings, however.
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Old 11-04-2010, 08:49 AM   #3
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I like the changes. They now include some small caps in there.

I may be selling a lot of my Emerging Markets, Pacific, and European shares and buying this (to tax loss harvest also). Keep it a little simpler.

We own this fund in DW's 401k (the institutional version).
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Old 11-04-2010, 05:24 PM   #4
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I like the consolidation. I remember owning the separate funds by region before there was a total international fund. Of course, when they created the total international index, I KISSed and went there
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Old 11-04-2010, 06:24 PM   #5
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It has a higher expense ratio than European, Emerging (admiral), and Pacific. You might be better off balancing it yourself.
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Old 11-05-2010, 01:02 PM   #6
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Originally Posted by RunningBum View Post
It has a higher expense ratio than European, Emerging (admiral), and Pacific. You might be better off balancing it yourself.
The expense ratio on the Total International is within 1 basis point of the weighted average expense ratio of the three regional funds (for investor class shares).

They have apparently filed with the SEC to offer ETF and Admiral class shares of Total International, which I assume will carry a similar weighted average expense ratio to the underlying regional Admiral class funds (0.19-0.2%). I believe they even said that was the target expense ratio for Admiral Total International.
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Old 11-05-2010, 02:19 PM   #7
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The expense ratio on the Total International is within 1 basis point of the weighted average expense ratio of the three regional funds (for investor class shares).

They have apparently filed with the SEC to offer ETF and Admiral class shares of Total International, which I assume will carry a similar weighted average expense ratio to the underlying regional Admiral class funds (0.19-0.2%). I believe they even said that was the target expense ratio for Admiral Total International.
Looks to be more like 2 basis points to me, which isn't that significant, but over 13 if you can take advantage of admiral shares, which aren't available for the Total International. If they come up with a low-cost ETF or admiral class that would bring it back into range, but today it's not very close. Maybe it's worth it to keep your internationals in balance, but I'm just pointing out the cost.
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Old 11-05-2010, 02:40 PM   #8
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Originally Posted by RunningBum View Post
Looks to be more like 2 basis points to me, which isn't that significant, but over 13 if you can take advantage of admiral shares, which aren't available for the Total International. If they come up with a low-cost ETF or admiral class that would bring it back into range, but today it's not very close. Maybe it's worth it to keep your internationals in balance, but I'm just pointing out the cost.
Well, 13 basis points on an annual basis, but once you automatically convert your investor shares into admiral in a month or two (when they become available), it will be virtually the same (well, within 1-2 bp ie rounding error).

Not quite worth selling appreciated shares of the regional index funds and paying CG taxes to move to the Total International Adm. shares though...
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