Author Topic: Non-Vanguard Foreign Stock and Foreign Bond Funds for 401K?  (Read 2372 times)

WFUDEAC

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Am I crazy to consider investing in Non-Vanguard Foreign Stock and Foreign Bond Funds for my 401K?
Considering these options:
                                                                                                                          ERs
DFCEX   DFA Emerging Markets Core Equity Portfolio Institutional Class    0.68%   
DFIEX   DFA International Core Equity Portfolio Institutional Class            0.40%
MEDIX      MFS Emerging Markets Debt I                                                           0.86%
PFUIX       PIMCO Foreign Bond (Unhedged) I                                                   0.50%

The alternative is an aggressive index model which is 4 vanguard indexes (low ERs) of which only the Vanguard Index Trust 500 is available as an individual option.

VANGUARD DEVELOPING MARKETS FUND    (Allocation 10.00%)
MID CAP INDEX FUND INVESTOR SHARES    (Allocation 20.00%)
VANGUARD INDEX TRUST 500               (Allocation 60.00%)
VANGUARD SMALL/CAP INDEX FUND       (Allocation 10.00%)

I like the idea of some different international holdings; especially the bonds. But maybe I am just stupid and should stick with Vanguard Funds.

My current specific international holdings are
     VEIEX    Vanguard Emerging Markets Stock Index Fund Investor Shares     0.33%
     FEZ    SPDR EURO STOXX 50 ETF                                                             0.29%   
My other holdings which obviously have international exposure from multinational US companies
     VFIFX    Vanguard Target Retirement 2050 Fund                                       0.18%
     VLACX    Vanguard Large-Cap Index Fund Investor Shares                             0.24%
     VTSAX    Vanguard Total Stock Market Index Fund Admiral Shares             0.05%
     VDEQX    Vanguard Diversified Equity Fund                                                     0.40%
     VWINX    Vanguard Wellesley Income Fund Investor Shares                         0.25%


Thoughts?

     

Left Bank

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Re: Non-Vanguard Foreign Stock and Foreign Bond Funds for 401K?
« Reply #1 on: July 10, 2013, 11:40:52 AM »
FWIW, I was talking yesterday with a financial guy I know and while chatting about funds/stocks/direction of the economy and market he mentioned to me that he would not invest in emerging markets because they are doing too poorly now.  He sees the US as in recovery mode and the best place to invest.  The dollar is strengthening and in fact the rupee keeps falling to new lows vs the dollar.

grantmeaname

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Re: Non-Vanguard Foreign Stock and Foreign Bond Funds for 401K?
« Reply #2 on: July 10, 2013, 01:16:54 PM »
a financial guy ... mentioned to me that he would not invest in emerging markets because they are doing too poorly now.
Isn't the whole point to buy things when they're cheap and hold them until they're not?

Left Bank

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Re: Non-Vanguard Foreign Stock and Foreign Bond Funds for 401K?
« Reply #3 on: July 11, 2013, 04:51:01 AM »
That is the basic premise but I think there is more to it than that.  Can you time the bottom of investments and how long do you want to wait?  Did you buy gold at $1700 months ago and think that it is down now so it must be a good investment?

grantmeaname

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Re: Non-Vanguard Foreign Stock and Foreign Bond Funds for 401K?
« Reply #4 on: July 11, 2013, 02:29:44 PM »
Can you time the bottom of investments and how long do you want to wait?
No, but neither can your financial guy. I don't avoid buying investments because they went down recently, if that's what you're getting at.