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Anyone invest overseas?

L

LuckyTaxi

Diamond Member
Bought some ETF shares in hong kong but looking elsewhere as well. Thinking of Europe but not sure which country in particular.
 
I have some real estate in India for investment purposes, but it's not exactly the most secure vehicle around 😀 There have been some outstanding returns on real estate in India for quite some time now though.
 
Vanguard stock index mutual funds, but nothing direct. Direct would be way too risky since I don't want to spend my time keeping track of the local conditions in other countries.
 
Topic Title: Anyone invest overseas?

Vanguard Emerging Markets Stock Index Fund Investor Shares (VEIEX)
Vanguard FTSE All-World ex-US Index Fund Investor Shares (VFWIX)
Vanguard Developed Markets Index Fund (VDMIX) - equiv of I Fund in TSP
 
Originally posted by: alrocky
Topic Title: Anyone invest overseas?

Vanguard Emerging Markets Stock Index Fund Investor Shares (VEIEX)
Vanguard FTSE All-World ex-US Index Fund Investor Shares (VFWIX)
Vanguard Developed Markets Index Fund (VDMIX) - equiv of I Fund in TSP
Click to expand...

i looked at VEIEX and VFWIX but didn't like those purchase and redemption fees.
 
If you buy and hold for years the purchase and redemption fees don't really matter. VEIEX has been a very good fund to own the last few years, and it's a good balance to US & development market holdings.

Yes, I'm a Vanguard fanboy 🙂
 
Yes, they are nuisance fees to discourage short term trading and to minimize fund costs. If you hold these funds for the long term, those folks who trade more often will pay more fees into the fund which helps you. Anyway it's a lot better than paying a ~5% load and hopefully the fee % will eventually decrease or disappear altogether.

VEIEX:
The fund assesses a 0.5% fee ($5 per $1,000 invested) on purchases and redemptions. The fee is paid directly to the fund and therefore is not a load.

VFWIX:
The fund assesses a 0.25% fee ($2.50 per $1,000 invested) on purchases. The fund charges a 2% fee ($20 per $1,000 invested) on shares redeemed within two months of purchase. The fee is paid directly to the fund and therefore is not a load.

Alternative is to purchase the EFT versions:
Vanguard Emerging Markets ETF (VWO)
Vanguard FTSE All-World ex-US ETF (VEU)
 
But if you look at the Vanguard Total International Stock Index Fund (VGTSX) and look at their allocation:

Vanguard European Stock Index Fund 56.1%
Vanguard Pacific Stock Index Fund 24.8%
Vanguard Emerging Markets Stock Index Fund 19.1%

Wouldn't that be a cheaper way to get into VEIEX? you don't have to pay the purchase and redemption fees?

I took a look at the ETFs VEU and VWO. They interested me more especially VEU. Just have to build up enough money to buy it at once to minimize commission fees.

 
Originally posted by: alrocky
Topic Title: Anyone invest overseas?

Vanguard Emerging Markets Stock Index Fund Investor Shares (VEIEX)
Vanguard FTSE All-World ex-US Index Fund Investor Shares (VFWIX)
Vanguard Developed Markets Index Fund (VDMIX) - equiv of I Fund in TSP
Click to expand...

Why would one choose those individual funds over the Vanguard Total International Market Index?
 
Originally posted by: maddogchen
But if you look at the Vanguard Total International Stock Index Fund (VGTSX) and look at their allocation:

Vanguard European Stock Index Fund 56.1%
Vanguard Pacific Stock Index Fund 24.8%
Vanguard Emerging Markets Stock Index Fund 19.1%

Wouldn't that be a cheaper way to get into VEIEX? you don't have to pay the purchase and redemption fees?
Click to expand...
VGTSX is a good choice if you want all 3 funds and want them in roughly those %s.
 
To clarify I am not suggesting that my choice is ideal, it's merely an answer to the OP's question of my international holdings. And its' designed around my federal Thrift Savings Plan. The International [~VDMIX] Fund in the TSP is my largest foreign holding. I selected VEIEX to complement it and VFWIX* in a taxable account.

Wouldn't (VGTSX) that be a cheaper way to get into VEIEX? you don't have to pay the purchase and redemption fees?
Click to expand...
Yes, that is correct. FYI, VGTSX is a fund of funds and doesn't qualify for a Foreign Tax Credit. If you purchased all 3 funds separately that are in VGSTX, you'd get the FTC, can assign your own allocation and can re-balance as you see fit. Would it be worth it? Maybe. VGSTX is a fine one mutual fund solution for one's foreign holdings.

*I'm maxing out the TSP and wanted a foreign fund in a taxable account.
 
I've had some VWO (Vanguard Emerging Markets ETF) for the past 7 months or so. I used Zecco so they didn't charge me for the trades.
 
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