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Vanguard’s New International Small-cap Index Introduced Covering Developed and Emerging Markets
#2
Posted 20 March 2009 - 11:13 AM
Steve
A good offering in a niche that is often ignored (small cap internationals). But be aware this is one heck of a risky fund category. It should only compromise a small part of your portfolio. Kudos to vanguard for offering an index fund in this area. Even at the 60 basis points its still one heck of a good buy.
Its a good time to buy it too with the inetrnatinal markey having lost a significant amount of its value.
#3
Posted 20 March 2009 - 04:30 PM
QUOTE(tony @ Mar 20 2009, 11:13 AM) 
Steve
A good offering in a niche that is often ignored (small cap internationals). But be aware this is one heck of a risky fund category. It should only compromise a small part of your portfolio. Kudos to vanguard for offering an index fund in this area. Even at the 60 basis points its still one heck of a good buy.
Its a good time to buy it too with the inetrnatinal markey having lost a significant amount of its value.
Agreed, and because small cap indexes have a lot more turnover, its not very efficient in taxable accounts.
#4
Posted 21 March 2009 - 09:14 PM
Steve,
Vanguard offers a fund I highly recommend and which I personally own. Its Vanguard Tax Managed Small Cap Fund. It throws out very little dividend or capital gains. It has a good blend of value and growth stocks in the small cap realm. I believe it also has some micro-caps. It is not without risk but its so far down as are pretty much all fund categories that its an excellent buy at this moment for a long term investor.
The downside is you need to have $25,000 to get in and you can not trade it for a year without a 1% penalty. All this restriction helps keep trading to a minimum which keeps the fund very very tax efficient.
If you are looking to add small caps to a non retirement, non IRA holding-taxable account , this one is
the way to go. It is a managed fund but the expense ratio is as low as index funds-I think.
Tony
This would be a great supplement to the small cap international fund you mentioned. And I repeat -as a small part of your balanced and diversified portfolio.
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