VTIAX vs VTMGX

[perinova]

I have owned VTIAX for long time and recently compared with VTMGX. VTMGX is the developped market only option based on the FTSE index. I noticed that VTIAX always have lagged.

I am thinking that I should switch to VTMGX, I dont think the non-developped world will suddenly be a better investment and catch up to the VTIAX index.

Any thought to the contrary?

 

[EvrClrx311]

From my understanding with VTMGX you don't get emerging markets exposure, which explains the slightly higher expense ratio (they both are incredibly low at 0.07% and 0.11%) because of that added work for the fun working those markets. For that reason, I view VTIAX as a better play. But they are both very good, overall.

 

[Out-to-Lunch]

My opinion is that it is totally time-dependent and unknowable. VTIAX only goes back to 2011. Thus, your comparison does not include the early 2000's. Do you recall the period where emerging markets was a top-performing asset class? It was in the top three in 8 of the 10 years between 2003 and 2012. Your comparison did not capture that.

But my crystal ball regarding future performance is cloudy...

 

[MarieIG]

Any tax implications involved with the sale of VTIAX?

I also have no crystal ball - but I don't hate it. (The two are actually quite similar, i.e. there is some overlap with their biggest holdings, and it still gives you the international exposure.) Personally, I'm not an all or nothing person, and I would probably partially exchange into it (barring unfavorable tax consequences), keeping a some VTIAX for developing market exposure.

 

[perinova]

My opinion is that it is totally time-dependent and unknowable. VTIAX only goes back to 2011. Thus, your comparison does not include the early 2000's. Do you recall the period where emerging markets was a top-performing asset class? It was in the top three in 8 of the 10 years between 2003 and 2012. Your comparison did not capture that.

But my crystal ball regarding future performance is cloudy...

Ok. Thanks. I am curious if you recall which were the top Two?

 

[perinova]

Any tax implications involved with the sale of VTIAX?

I also have no crystal ball - but I don't hate it. (The two are actually quite similar, i.e. there is some overlap with their biggest holdings, and it still gives you the international exposure.) Personally, I'm not an all or nothing person, and I would probably partially exchange into it (barring unfavorable tax consequences), keeping a some VTIAX for developing market exposure.

No tax implications. I was looking at the Fidelity fund equivalent (FSPSX) and figured it was performing better than VTIAX. The reason is that it is following the same indes as VTMGX

 

[Out-to-Lunch]

Ok. Thanks. I am curious if you recall which were the top Two?

I think you misinterpreted what I wrote. I said that, in 8 of the ten years between 2003 and 2012, Emerging Markets were one of the top three asset classes (in that year). So sometimes it was #1, sometimes #2, etc.

Note that this was like the girl with the curl in the middle of her forehead. When it was NOT doing well, it was horrid.

Take a look here:

 

[MarieIG]

No tax implications. I was looking at the Fidelity fund equivalent (FSPSX) and figured it was performing better than VTIAX. The reason is that it is following the same indes as VTMGX

Glad to hear that there are no tax implications.

Very interesting. I put VTMGX (and the ETF equivalent) on my "watch list." I have a small account over at Fidelity so I will take a look at that one as well.