International allocation
Posted: Thu Sep 06, 2018 3:17 pm
This post is about US-based PP, so "international" means ex-US equities.
The question of adding foreign stocks into PP was discussed many times and I don't want to resurrect the beast again. Let's assume we decided that we want to add some international exposure. Now, given high correlations in the large cap area (and the fact that a heavy chunk of SP500 companies revenue is coming from abroad) I decided to limit my international exposure to small and/or small/medium caps. VSS seems like a good option covering both developed and emerging markets with the lowest ER. I also thought about using a 2-fund setup: SCZ (developed) and DGS (emerging).
I wonder what others are using in their PP for the international exposure. I'm not set on an ETF-only approach, but there's not that many decent low-cost mutual funds in the small cap area. Not talking about active funds since this is not a VP forum.
The question of adding foreign stocks into PP was discussed many times and I don't want to resurrect the beast again. Let's assume we decided that we want to add some international exposure. Now, given high correlations in the large cap area (and the fact that a heavy chunk of SP500 companies revenue is coming from abroad) I decided to limit my international exposure to small and/or small/medium caps. VSS seems like a good option covering both developed and emerging markets with the lowest ER. I also thought about using a 2-fund setup: SCZ (developed) and DGS (emerging).
I wonder what others are using in their PP for the international exposure. I'm not set on an ETF-only approach, but there's not that many decent low-cost mutual funds in the small cap area. Not talking about active funds since this is not a VP forum.