ETF Your choice for International exposure

Hi All,

I am currently investing in VGS for international exposure. Not sure if this is the best choice or should I be investing in others like IVV, VTS etc.

 

Did you really mean that?

I have IVV, IJR, NDQ, IOO in my superannuation.

Not necessarily a good time to buy (although not following them closely).

 

Fixed the typo .

 

VGS is a top choice op. It replaces vts/veu without emerging markets. If you really want emerging markets then 5-10% of vae (0.40 mer) or vge (0.56 mer)

 

NDQ, has given about double the returns of VGS in the past with 15%+ returns p/a. VGS has not been great.

 

NDQ just tracks the Nasdaq, so it’s overweight on US tech companies. VGS is far more diversified covering the whole US market and also includes other developed economies such as UK and Japan.

Also, NDQ’s fees are 0.48%, compared with VGS’ 0.18%. That’s a massive difference.

 

VGS has returned 12% p.a. since inception. (a useless time frame of only 4 years)

 

past performance is not an indicator of future outcome

 

Always interesting to look at fees, dividends, total returns though over times past

NDQ - Betashares NASDAQ 100

VGS - Vanguard MSCI Index International Series

IVV - IShares Core S&P 500

IJR - IShares Core S&P SmallCap 600

IOO - IShares Global 100 ETF

VAE - Vanguard FTSE Asia Ex Japan Shares Index ETF

VGE - Vanguard FTSE Emerging Markets Shares

 

I have IOO and VGS...in my portfolio.

 

If the purpose is diversification though, IOO seems too concentrated compared to VGS.

 

EFT Watch performance never looks right to me.

IVV/IJR around 10-year p.a. performance around 30%?

Investment Management, Risk & Advisory Services | BlackRock
Investment Management, Risk & Advisory Services | BlackRock

 

+1 for VGS
It is far more diversified than just the US market.
It might not have as high recent returns but as others have said, past performance is not a predictor of future performance. If anything, a high past performance is likely to be followed by periods of underperformance.

VGS is the core of my portfolio. Along with VAS VAE

 

Are there any 100% China funds.
I remember years back there were some but haven't heard about any last few years.

 

I have the wholesale fund version of VGS and VISM, although I must admit VISM makes me a tad nervous.

Going all US would make me even more nervous, however. I'm a bit of a believer in the 'Asset Quilt' (which I just made up) method of allocation. In other words new money goes into asset classes which have done poorly in the previous year.

 

IZZ, CETF, CNEW

All 100% china.

Plenty of Asian offering's and emerging (which tend to have a high % exposure to China)

 

Actually it is a little bit less so as I said not great, I wouldn't call NDQ great either I set a minimimum target of 15% . Since NDQ inception in June 2015 @ $10 the CG is 92%, in the same time VGS has gone from about $57.00 to $$77.00 only 40%, this poor performance makes the 4 or 5 % yield whatever it is look good. While it makes the 2.5% yield on NDQ look bad, but it is 4.5% on original investment probably the same as VGS. BUT YOU HAVE HAD A 126% more CG with NDQ, compound that with increasing divergence as NDQ is much more concentrated in what I considered stronger companies and the end result could be massive. Giving up a fortune 100% profit, to save a piddling .05 % in fees, and a lower but perceived higher income doesnt make sense to me. The 8% p/a CG VGS has had is poor given the great bull run in that time.

 

@sfdoddsy

The Asset Quilt warmth and happiness

 

You're talking about past performance, but how do you know NDQ will continue to return +15% p.a. going forward?

The fees compound over the long term, the ~0.3% difference in fees would hurt if NDQ did not outperform in perpetuity.

Either way comparing NDQ and VGS isn't fair. The international exposure of VGS will always be the differentiator here (for better or worse).