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Vanguard FTSE Developed All Cap ex North America Index ETF (VIU)
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Vanguard FTSE Emerging Markets All Cap Index ETF (VEE)
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Vanguard Total International Stock (VXUS)
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iShares MSCI Japan ETF (EWJ)
Q: Hi - as the US has been a stronger market for the last couple of years, a large portion of my portfolio is USD. With the recent economic turmoil in the US and the resultant effect on their dollar, would you consider holding some ETF's in currencies such as the British Pound, Euro and Canadian dollar? My portfolio is heavily weighted in cash, as I hope to be able to wait on the sidelines till we see a buyable bottom, vs get whipsawed based on the latest idea from the 'Village Idiot'. As always, I welcome you thoughts!
5i Research Answer:
Diversification is always a good plan. Europe, Japan etc. are clearly not perfect, but they are indeed (still) cheaper than US markets and have seen better near-term performance as the US goes from 4.9% GDP growth to negative in less than half a year. We would be fine with some diversity, certainly. VXUS is one of our favourite non-US global funds. VIU is non North America. VEE and VE can be suggested for emerging markets and Europe, respectively. EWJ for Japan.