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Author: diat Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75829  
Subject: International Fund Date: 4/24/2006 8:30 PM
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DH and I need to add international exposure to both of our Roth IRAs. Neither of us will buy Vanguard Total International Market Index Fund (VGTSX) for different reasons. I am with Scottrade and choose to now buy ETFs because Scottrade has a charge when buying mutual funds. DH is with Firstrade and VGTSX is not available to him. So our choice is now ETFs. However, there is no single comparable Vanguard ETF. I read a Morningstar article that stated that VGTSX can be simulated with ETFs by using the following:

60% Vanguard European Stock VIPERs (VGK) - expense ratio 0.18%
25% Vanguard Pacific VIPERs (VPLs) - expense ratio 0.18%
15% Vanguard Emerging Markets VIPERs (VWO) - expense ratio 0.30%

I am trying to decide between the above method and simply buying iShares MSCI-EAFE (EFA) which is large blend international with an expense ratio of 0.35%.

Which is the better deal? With method #1, we will have to buy three different ETFs, but the expense ratio is lower. With method #2, we will only buy one ETF, but the expense ratio is more. These two methods seem to be on opposite sides of the spectrum.

** Also posted on the Index Funds Board. **

diat
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Author: joelxwil Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 51376 of 75829
Subject: Re: International Fund Date: 4/24/2006 9:10 PM
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Put up a chart and see which have done better. Don't worry much about the expenses.

Here are some excellent foreign funds:

MEMEX
UMEMX
PSPFX
USCOX

Again, look at the charts.


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Author: DeltaOne81 Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 51378 of 75829
Subject: Re: International Fund Date: 4/24/2006 9:19 PM
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Is this a one time investment? If so, lower expense ratio is probably better.

If its a regular investment, you probably want to avoid repeated commissions.

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Author: diat Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 51382 of 75829
Subject: Re: International Fund Date: 4/24/2006 9:34 PM
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We both have lump sums that we want to invest. We usually wait until Roth's pile up a good amount of money and then buy what we need next. This time around, we need international since we don't have any representation there.

diat

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Author: buzman Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 51402 of 75829
Subject: Re: International Fund Date: 4/25/2006 5:22 PM
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Rick Ferri recommends splitting the International exposure to half VGK and half VPL.



buzman

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