![]() ![]() VTSAX’s max drawdown was -50.89% from 2007-2009 with recovery by March 2012.VTIAX = 4.11% annualized return and 17.16 volatilityīecause the investor shares are merely a different share class of the same fund I refer to them as their more commonly recognized admiral funds, which are what I would recommend you invest in (or the ETF) if you were to begin today, just FYI.Īnother awesome insight from PortfolioVisualizer is the “Max.VTSAX = 8.52% annualized return and 15.74 volatility.Going back to PortfolioVisualizer with just VTSMX (VTSAX’s investor shares) and VGTSX (VTIAX’s investor shares) we can go back to May 1996 for a 25-year comparison. But is there a more long-term perspective out there? Over the past 25 years… So, not like we’re going back to the Roman empire, but not chump change either. That’s likely over 50% of most people’s accumulation phase (when you’re saving and investing) for retirement. Not the longest of timeframes, but decent. VGSLX offered a better risk-adjusted return than VEMAX over this time period. This gives you a sense visually for risk-adjusted returns. Nearly the same volatilities but significantly different returns. But how about that volatility?! Compare VEMAX’s returns and volatilities to those of VGSLX, the REIT. Fortunately, a couple of awesome years with returns of 57.65% and 75.98% helped out a lot. And some of those down years were big, meaning high volatility. The only problem? Eight down years out of the past 20 years. VEMAX, the emerging markets index fund, looks decent at a 6.50% annualized return. I would like to blame VTIAX for the same shortcomings as VTSAX that I covered in Part 1 of this series, but unfortunately, there really weren’t any great international index funds over the last 20 years. Immediately, VTIAX sticks out like a sore thumb! To say the least, international stocks have had a rough couple of decades. ![]() Table 1 shows the annualized returns (CAGRs) and volatilities for each fund from January 2000 – December 2019. Remember, the past 20 years is not the full barometer for determining if international stocks belong in your portfolio. The purpose of these portfolios today is to show the impact of international stock inclusion in the KI$S diversified portfolio from 2000-2019. International was looking pretty good for a while… ![]() But I hope everyone can still remember from Part 7 what the U.S. So it’s kind of easy to pick on international stocks. stock market went on the run of a lifetime from 2010-19. Suffice it to say that the past 20 years haven’t been good for international stock markets outside of a handful of years. Whether to invest in international stocks and if so how much, is for another post. So today we’ll look at what happens when we add Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) and Vanguard’s Emerging market fund (VEMAX) to the portfolio from Part 4. But many investors also want international exposure, believing it will further diversify them and enhance returns. I’ve simply presented the case for doing better than that. Why? Because many investors holding VTSAX hold either a 100% VTSAX portfolio OR VTSAX comprises their entire domestic (USA) stock allocation.Įverything I’ve done so far in this Beating VTSAX series has focused on domestic funds because VTSAX is a domestic fund. To this point, I’ve solely focused on domestic stocks. ![]()
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