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You would have a higher effective fee, 0.14% vs 0.10% if you had an equal split between VOO and VWO. That said, I think there is healthy skepticism with the wo
by emcq 10y ago
You would have a higher effective fee, 0.14% vs 0.10% if you had an equal split between VOO and VWO.
That said, I think there is healthy skepticism with the world funds in terms of their ability to reduce risk considering so much correlation to us stock and dollar value, relatively high fees, and relatively weak long term performance relative to US markets.
Some of this is due to China not making available some of their investment opportunities to foreigners. I'd love to get an index fund that has exposure to growing companies like DJI or Didi.
- twblalock 10y agoIf you want to invest in Didi, which hasn't had an IPO yet, you can invest in Apple and Alibaba, which have invested a lot of money in Didi. Given that Apple is the largest holding in most S&P 500 and total stock market index funds, anyone who has invested in those funds will benefit somewhat from the success of Didi. Jack Bogle, the founder of Vanguard, goes so far as to argue that a broad US-market index fund is all you need for international exposure, because many US companies will benefit from the success of the international companies they have invested in and do business with. I don't quite buy that argument, but it's something to keep in mind when you construct a portfolio: index funds that appear to be distinct often overlap.