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VGTSX OR VFWIX for international fund? |
I have an existing account with Vanguard and am choosing between these two funds. I have the min. $3,000 to start. The FTSE All-World ex-US Index Fund includes Canada, but this is only ~5% of the distribution, so it is a minor consideration. The 0.25% purchase fee on this fund is a definite minus. However, the FTSE All-World ex-US Index Fund may be more tax efficient, and allow you to deduct a foreign tax credit on your income tax. I don't think the Total International Stock Index Fund allows you to use the foreign tax credit, although I am not clear on this. Not much difference, except that VFWIX includes Canada. There is a fair argument to me made to hold a little of both as your "international exposure", but if you must choose between the two, it seems like the logical choice would be the Vanguard Total Intl Stock Index (VGTSX). If you're going global...you don't really have to stick with an " index"...let the good managers at V make you some money with something like VHGEX... buy VEU the etf instead |
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| Venture Investment Venture Capitalist Venture Capital VC Fund Vanguard Fund Value Investment Trust Investment Stock Investment |
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