A Good Way to Invest Internationally
A Prudent, Well-diversified, International Investment Portfolio
Here's a diversified portfolio for international (outside the U.S.) investments for your consideration:
1. Sector Diversification (% of equity exposure)
9.0 % consumer discretionary
7.6 consumer staples
6.4 information technology
6.4 telecommunications services
2. MARKET DIVERSIFICATION (% equity exposure)
3.6 Other European Markets
55.6% Subtotal Europe
1.7 Hong Kong
1.0 Other Pacific Markets
23.7% Subtotal Pacific
3.2 % China
2.8 South Korea
1.4 South Africa
3.2 Other emerging markets
20.7% Subtotal Emerging Markets
Now some may be wondering how could I possibly achieve the above sector and market diversification? And at what cost? The answer is very simple:
Invest in Vanguard's Total International Index Fund.
And what is the cost of buying shares in the fund?
Answer: Zero. This is a no-load (no sales commission) fund.
And what is the expense ratio of the fund (i.e., the operating cost charged each year against my investment in the fund)?
Answer: .54 % per year
What kind of results can I expect?
Answer: Nobody can predict the future. Here are some recent past results:
2008 -10.1 (6 months ending 4-30)
One year +1.34%
Five years + 23.18
Ten Years + 7.04
Source: Vanguard Semi-Annual Report April 30, 2008
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