Fedup
Thinks s/he gets paid by the post
Any thought on Japan? I just bought some for my HSA account. Erin Brown from CNBC alerted me to EWJ.
Any thought on Japan? I just bought some for my HSA account. Erin Brown from CNBC alerted me to EWJ.
Good thing I never did 10 years ago. I'm asking for now though.If you bought it 10 years ago, you would be back to even now (less fees). The same goes for 20 years ago.
https://www.ishares.com/us/products...g3l9BAWgMaAni98P8HAQ&gclsrc=aw.ds#chartDialog
It might go up. It might go down.Any thought on Japan? I just bought some for my HSA account. Erin Brown from CNBC alerted me to EWJ.
Opinions:So I bring back this thread to ask a question about ETFs, why so many? I can't understand the difference. I tried google them on Bogglehead but it's not helpful for my understanding.
So what's the difference between VGK vs VEA. Then we have VEU and VSS. Before anybody tell me just buy VXUS, I'm just trying to understand the difference.
So what's the difference between VGK vs VEA. Then we have VEU and VSS. Before anybody tell me just buy VXUS, I'm just trying to understand the difference.
Thank you. I must have done it all wrong then. I thought VEA is Europe until I noticed that VGK went up a lot more than VEA.VSS = Small-cap ex-US; VEU = All-cap ex-US (so also big cap).
VGK = Europe; VEA = Europe + Canada + Pacific
If you google "vanguard personal" + ticker, first hit usually is the relevant profile of said funds.
Opinions:
Why so many? Human greed. Now that the word "index" is hot, every fund company wants to have as many funds called "index" as they can. And since the concept of passive investing has become so horribly distorted (for example, claiming that sector "index" funds have been blessed by the priests of the church of Fama and French) there is plenty of opportunity for the hucksters to fleece the naive.
What's the difference? IMO ETFs were created to give the brokers a tool to keep customers from moving their money to the Vanguards and the Fidelities. Also as a tool to encourage people to generate trading commissions. There is no overwhelming reason to choose ETFs though there can be some very minor ones relating to fees and tax efficiency. There is one negative, though, that IMO may be significant at some point: Shares in ETFs are created and liquidated by third parties called "authorized participants." These parties apparently make a small amount by arbitraging during the process. A problem may arise, though, during major market downward moves: With the underlying shares moving quickly in value, the authorized participants may move to the sidelines rather than risk buying and liquidating EFT shares, thus destroying ETF liquidity. IF this happens, it might not be pretty -- but the "IF" is a big one. Conventional mutual funds will also have problems in a fast moving market but the friction introduced by once-a-day pricing and trading plus the absence of third-party players seems to me to make the situation less risky. Since I don't day trade my mutual fund positions, I can avoid this hypothetical risk by emphasizing conventional mutual funds in my portfolio.
Oh, and the idea that all ETFs are index funds is just flat wrong. Conflating the two is a mark of ignorance. There are actively managed ETFs.
IMO the lessons from Markowitz, Sharpe, Fama, and French are that investors should hold a broad, diversified portfolio such as an inexpensive single total market fund or a two-fund combination of a US total market fund and an international total market fund. So we really need only three funds, not ten thousand. Add broad market small cap and value funds for people who want to tilt their portfolios a little in recognition of the Fama/French three factor model, and we are up to five funds with our investing needs fully met. Add two more if you want to separate US and international specialty funds.
OK. Let the firebombs begin.
Thank you. I must have done it all wrong then. I thought VEA is Europe until I noticed that VGK went up a lot more than VEA.
So to be more specific, the Pacific in VEA includes which country in the Pacific? And while I'm at it, what countries are in VWO?
Thank you. I found out that VEA has 21% Japan. I didn't know that. I thought at one point I googled the equivalent ETF for VEURX mutual fund was VEA. Now I know better.The Vanguard website has all sorts of details about their funds, including answers to your questions.
My AA is 50/50. Of the stock AA, 25% is in Intl index fund VTIAX.
Haven't International stocks fallen out of favor with most due to poor performance? Seems to me that I recall recent comments from Buffett and others that US is the only place to be at this point in time. New report from Vanguard funds implies low growth in Intl sector in next few years.
My market knowledge is minimal and I've been a 'set and forget' investor... I'm just interested in thoughts of those more attuned to the financial sector. Any thoughts as to going all US?
True of all funds, not just international. The broader the fund holdings, the less important it is to find the "correct" one, other than by seeking minimum fees.... choosing the absolutely correct Intl ETF is like picking fly-poop out of the pepper shaker. ...
... and also dilute overall losses. This is the effect of diversification.... And that holding a broad-based Intl ETF would only dilute the overall gains.
Yup. Investing is easy. No fly poop involved. Just apply the Will Rogers rule: If it don't go up, don't buy it.Just YTD, VEA and VWO returns have doubled VTI. If that's fly poop, I'm happy to pick them up.