VEMAX vs other Emerging Markets vs International

[bearkeley]

Trying to move closer to my target allocation and need more international and since we don’t really have anything in emerging markets, thinking of Vanguards VEMAX. I like the low fees but to be honest, other than knowing I need to diversify further, don’t really know if this is the right move. Buying US has been a good strategy, so maybe something a little different? This would just be a small portion of our portfolio...will keep it in an IRA so although Foreign Tax May be incurred, it’s minimal. Any thoughts? Other alternatives?

 

[NYEXPAT]

EEM ? I am looking at it due the current divergence with US markets, but have not pulled the trigger.

 

[flintnational]

We are 70% stock. 49% US, 14% VTIAX and 7% VEMAX. I like sticking with Vanguard so I have not compared VEMAX to other EM funds. EM is volatile but still one of the cheapest stock classes around. Maybe cheap for good reasons.

 

[lust4adventure]

International large caps seems to be more and more correlated with the U.S. market nowadays. I still invest in VEMAX and VTIAX (20% of my portfolio combined) because (1) there are lots of businesses outside the U.S. churning out huge profits and I want a piece, and (2) I want international exposure just in case things go way south here (unlikely, but possible). I wonder, though, whether that'd help if the U.S. completely tanks (again, highly unlikely) because exchange rates would probably worsen, too.

 

[copyright1997reloaded]

EEM ? I am looking at it due the current divergence with US markets, but have not pulled the trigger.

VMO is the ETF equivalent to VEMAX and has lower expense ratios than EEM. Note that China is a major component, specifically stocks like Ten Cent Holding (TECHY) and Taiwan Semi (TSM). This may or may not be what you want (they are certainly not small cap nor would I consider China 'emerging' at this point).

[Note: I am not dissing this as investment, in fact I've been looking at increasing my holdings in VWO and/or EEM as a potential play on China's market fall so far in 2018 and as a way to pick up Chinese internet and social media and gaming stocks, e.g. TECHY is a huge gaming company). ]

 

[Midpack]

I’ve owned a big chunk of VEMAX for many years and it fits our needs well. But you can look at the price/performance history and decide if it’s right for you. I wouldn’t buy it because someone else says it’s a good idea.