The results below show what happens when you pick the best performing country funds instead of owning
a broader international index fund.
Not exact matches
Each
fund invests in Vanguard's
broadest index funds, giving you access to thousands of U.S. and
international stocks and bonds, including exposure to the major market sectors and segments.
To get the mix you need, Prior recommends a total U.S. stock - market
index fund, a total
international stock market
index fund, and an
index fund that buys a
broad sampling of U-S and
international bonds.
The
fund tracks an
index of
international large - and midcap stocks that's a subset of our
broad - based benchmark.
Similarly, the
fund's
international allocations posted gains but didn't keep pace with the
broader stock
indices due to our focus on market segments that we see as having lower risk.
The
fund is up an average of 9 % a year over five years, better than 99 % of its foreign large - value peers... The goal is to offer investors
broad exposure to
international markets, but in a portfolio that doesn't simply mimic its benchmark, the MSCI EAFE
Index.
While I have no problem with going all -
index — a total U.S. stock market
fund for
broad domestic stock exposure, a total U.S. bond market
fund for your bond stake and a total
international fund if you want to include foreign shares in your asset mix — I don't contend you would be totally undermining your investing efforts if you throw in the occasional actively managed
fund, provided it has low expenses.
I don't think you should overlook a
broad index fund such the total U. S. market
index, total
international index, S & P
index just to name a few.
AADR can serve as an alpha - seeking complement to a
broad - based market cap weighted position, such as a
fund that tracks the MSCI EAFE
Index, as well as a standalone investment solution for
international equity exposure.
You can get pretty much cover all the sectors of the stock and bond markets with just two or three
broad index funds or ETFs: a total U.S. stock market
index fund, a total bond market
index fund and a total
international stock market
index fund.
Many FI authors fail to understand the
international exposure baked into a
broad - based total US stock market
index fund like VTSAX.
Each
fund invests in Vanguard's
broadest index funds, giving you access to thousands of U.S. and
international stocks and bonds, including exposure to the major market sectors and segments.
Modern portfolio research favors a diversified asset allocation with
international stock
index funds, USA stock
index fund, and
broad based bond allocation (although probably wouldn't put new money in bonds now with interest rates so low).
Over the past 10 years the
fund has posted an average annual return of 12.01 %, which towered over the 1.94 % of the
broad international stock benchmark, the MSCI EAFE
index.
What this means is that unlike some of the
broadest international funds like the Vanguard Total International Stock index, the I Fund excludes equities from all emerging markets and
international funds like the Vanguard Total
International Stock index, the I Fund excludes equities from all emerging markets and
International Stock
index, the I
Fund excludes equities from all emerging markets and from Canada.
In fact, the right balance of four of our
broadest index funds could give you a complete portfolio, with full exposure to U.S. and
international stock and bond markets.
A
broad index fund is one way to get
international exposure in your portfolio, but
index funds aren't perfect.
Notes: U.S. stocks represented by Dow Jones U.S. Total Stock Market
Index through April 2005, MSCI US Broad Market Index through June 2013 and CRSP US Total Market Index thereafter; emerging markets stocks are represented by MSCI Emerging Markets Index; REITs by FTSE NAREIT Equity REIT Index; dividend stocks by Dow Jones U.S. Select Dividend Index; commodities by S&P GSCI Commodity Index; high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index through April 2005, MSCI US
Broad Market
Index through June 2013 and CRSP US Total Market Index thereafter; emerging markets stocks are represented by MSCI Emerging Markets Index; REITs by FTSE NAREIT Equity REIT Index; dividend stocks by Dow Jones U.S. Select Dividend Index; commodities by S&P GSCI Commodity Index; high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index through June 2013 and CRSP US Total Market
Index thereafter; emerging markets stocks are represented by MSCI Emerging Markets Index; REITs by FTSE NAREIT Equity REIT Index; dividend stocks by Dow Jones U.S. Select Dividend Index; commodities by S&P GSCI Commodity Index; high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index thereafter; emerging markets stocks are represented by MSCI Emerging Markets
Index; REITs by FTSE NAREIT Equity REIT Index; dividend stocks by Dow Jones U.S. Select Dividend Index; commodities by S&P GSCI Commodity Index; high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index; REITs by FTSE NAREIT Equity REIT
Index; dividend stocks by Dow Jones U.S. Select Dividend Index; commodities by S&P GSCI Commodity Index; high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index; dividend stocks by Dow Jones U.S. Select Dividend
Index; commodities by S&P GSCI Commodity Index; high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index; commodities by S&P GSCI Commodity
Index; high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index; high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond
Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate
Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate
Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond
Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index; Hedge
fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
index by HFRI
fund - weighted total return
Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index and
international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond
IndexIndex.