Author Topic: Help with Vanguard international funds  (Read 2272 times)

BarkyardBQ

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Help with Vanguard international funds
« on: May 01, 2015, 02:09:05 PM »
Looking for some advice and expertise from some of our extremely knowledgable people.

VTIAX   Total International Stock Index Fund Admiral Shares
VEMAX   Emerging Markets Stock Index Fund Admiral Shares
VTMGX   Developed Markets Index Fund/Tax Managed


I have the listed funds invested in some form (Admiral, Institutional, ETF) in any 1 of 4 retirement accounts (457x2,403x2). We're about to drop a 10k brick into our taxable account and I want to prevent redundancy and a need to sell in the future for better diversification. VXUS obviously holds the whole candy store; VEA holds less, however was merged with the tax-managed fund, and from what I can see still has that label on Vanguard's website. Reading the prospectus of VEA/VTMGX aside from the normal aftertax/pretax returns etc, I don't see any explanation of how this is tax managed. VTGMX has a 4.4% turn over while VTIAX has a 2.7% turnover. Does that mean that VTIAX should have lower tax implications? VTIAX also has larger distributions but it has more holdings. I want to buy and hold either VTIAX or VTMGX essentially forever, and be able to shovel any extra savings into that and other taxable holdings... but I can't determine which is better. VTMGX is also cheaper. I could not find a fruitful answer on Boglehead's.

Secondly, and I think the answer is obvious... VTIAX has 18% allocation of emerging markets and I'm not sure if I should even bother trying to tilt our portfolio with extra EM. I currently do 5%, but this seems to actually add extra work. At 18%, that actually means my 5% tilt puts 10% of the portfolio in emerging markets. Would I make life a lot easier and have the same allocation if I just held VTIAX or should I forget that fund and control my own mix VTMGX and VEMAX?

Is Vanguard FTSE All-World ex-US Index Fund Admiral (VFWAX), just a combination of VEMAX and VTMGX?
« Last Edit: May 01, 2015, 02:39:27 PM by zdravé »

forummm

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Re: Help with Vanguard international funds
« Reply #1 on: May 01, 2015, 08:03:36 PM »
Your questions are hard to decipher.

VTIAX is a good fund to hold the total cap-weighted international market. You can add extra of any component if you want to. But no need to. All these Vanguard funds are very tax efficient and won't give you capital gains distributions.