No bonds exposure but I believe I am prepared to ignore a 2008 level recession or correction. I was planning on re-balancing to include VTIAX in a few years on my current trajectory. VTWAX has a higher 5-year return than VTIAX (8.3% vs 6.66%). There are so many other, easy to understand ways to make money. It really doesn't have to be too laborious either. My 401k is overweight in US markets while my taxable & Roth IRA are overweight in international. The Fund employs an indexing investment approach to track the performance of the CRSP US Total Market Index. As someone in my mid 20s, I currently try to target Personal Capital’s aggressive portfolio of 60% US stocks, 26% international, 10% alternatives. Adding bonds in down the road. I do not have the option of traditional 401k in my line of work, so index funds is likely my best bet. You're right that VTSAX has a good mix of international exposure built into that. Why are you summing the expense ratios? It was a great read and helped me a lot. Thank you. And yes, at your age, go 100% VTWAX. The cost is about 0.07% if allocated with the same weighting as VTWAX of domestic to international. I also like having some VTIAX as well. However, it is my understanding that the sum of VTSAX and VTIAX expense ratios (.15) is slightly higher than the VTWAX (.11), though the amount invested in international stocks is much higher than is generally recommended within VTWAX. You may also want to check out the following VTWAX comparisons that investors often look for on Finny. I was holding mainly VTSAX with some VTIAX, and agonizing on what split I should keep between the two. However I'd say that you have you have to calculate the ER not by adding but by calculating the weight of the ER across the portfolio. Given that it is currently 54% US Stock (Large Cap to Mid Cap) and 44% Int'l Stock, I'd be more inclined to go with VTSAX and VTIAX. VTWAX is 58% North America, 42% international (roughly 58% US ignoring Canada & Mexico contributions to North America). The Fund seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in developed and emerging markets, excluding the United States. Go ad free! Yea but they would if they lived here though and could, or it wasn’t so costly for them to do so.. What is the difference between ETF & what I have? The Fund seeks to track the performance of a benchmark index that measures the investment return of stocks of companies located in developed and emerging markets around the world. Thank you in advance. 27 years old, USA, 50k income/year. Feel free to the browse the list and view the comparisons that are of an interest to you. Is this difference enough of a reason to not start using VTWAX? Seriously, if you don't understand it, don't put money in it. Cookies help us deliver our Services. Press question mark to learn the rest of the keyboard shortcuts. I have purchased 'A Random Walk Down Wallstreet', 'Simple Path to Wealth - JL Collins' and 'Common Sense Investing - Bogle' to assist in my understanding of this endeavor. Total world, VTWAX, combines them 60% domestic and 40% international. This makes sense to me as a strategy, as does the 3 fund approach. Is this difference enough of a reason to not start using VTWAX? Press J to jump to the feed. Personally, I prefer to have non-overlapping securities, so I'd do it with VTIAX against your FXAIX in your 401k, since you're pretty much stuck with that. I'm super late to the party here but if anyone sees this, are there any funds that do both us and international for Schwab? Are you planning to change that, or are you keeping all cash because you have current qualified expenses? I myself hold 100% VT (VTWAX ETF equivalent). (The math error here is that you need to weight them. The Fund seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in developed and emerging markets, excluding the United States. VTSNX description. This is just an example of the weighted averages. Handlebar Stache; Posts: 1621; Re: VTSAX - Why don't just put all $$ in this Index fund? I think all roads lead to Rome. VTIAX vs VTWAX; VTIAX vs VFWAX; VTIAX vs VTI; VTIAX vs VXUS; VTIAX vs DODFX; Or use Finny Compare Wizard to create a comparison you’d like to see. I’m not sure what the arguments for alternatives are besides more stable lower returns. What factors to consider? VTWAX is the perfect compromise. Reading Simple Path to Wealth now. For example, if you were to go 50% VTSAX and 50% VTIAX, you'd multiply 0.5 by the VTSAX expense ratio and 0.5 by the VTIAX expense ratio and then sum those numbers to find out your overall expense ratio.).