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
Put up a chart and see which have done better. Don't worry much about the expenses.Here are some excellent foreign funds:MEMEXUMEMXPSPFXUSCOXAgain, look at the charts.
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.
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
Rick Ferri recommends splitting the International exposure to half VGK and half VPL.buzman
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |