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Vanguard Emerging Markets Stock Index Fund (International) .... ???


Currently I have my money in Vanguard Total International Stock Index and Vanguard Total Stock Index-- the Total stock index has been performing rather badly and I am thinking of transferrign the money fromt here to Emerging markets.. but have no exp. in those types--- any opinions, expertise highly appreciated =)

Emerging markets have been out performing developed markets for a number of years. There are many who believe that these markets have gotten ahead of themselves, especially China and India but all in general and are due for a stiff correction. These markets are indeed very volitile.

There is an opposing school of thought that believes that the emerging markets are the place to invest because the growth rates there are about 3x greater than in the developed markets.

I do not know that I would move all of my assets from the one fund to the other, but for diversity sake it certainly would be appropriate to move a portion. Because of the greater risk you do not want to have a large portion of your assets there, but because of the greater return potential it would be a prudent move to have a portion there, perhaps 15%.

get a copy of Morningstar..................they rate mutual funds................only buy ones that have 4 or 5 stars.............
emirging markets is a tough market group..........big risk, big reward(maybe).........AT LEAST FIND OUT WHAT SECTOR OF THE MARKETS ARE COVERED...............WHICH COUNTRIES...WHICH SECTORS..ETC..IT IS YOUR HARD EARNED MONEY.DO SOME HOMEWORK

I think that where you have it is fine. The Total Stock fund is just reflecting the current markety volatility but its a good long-term index fund.
Before moving anything to the Emerging Market fund, take a look at the Total International fund allocation to see how much of it is already in the emerging market category. You don't want to overload in that area. Yes, its currently making high returns, buy high risk goes along with that.

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