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
More by this Author
There is no accurate measure of hedge fund performance because of the absence of reporting requirements and because the performance of the unsuccessful ones that are dissolved and disappear are not included in the...
Gretchen Morgenson tells the sad tale of Melissa Calderone's recent nightmarish experience when she attempted to buy a home in Windemere, Florida from Pulte Homes, the nation's largest home builder.
Staph Infections Patients who have sores that will not heal or that are filled with pus should see a doctor and ask to be tested for staph infection. They should not squeeze the sore or try to drain it--that can spread...