Dan Sotiroff (Morningstar, VXUS)


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Joining us now for stock talk is dance daughter off for Morningstar and Dan thank you very much for joining us. Or Oprah did we're talking many ETF here's the vanguard total international stock DT MF what do you like about it. Don't really yes it is it's kind of core portfolio holdings if you look at sort of long term investment portfolio of US stocks foreign stocks. This really kind of soldier reforms doc pocket and kind of a one stop fashion it's got. Not only develop market but also emerging markets and a and it had a couple other advantages. Really are skewed towards the investor the end of the day. Looking at this point one of the biggest attractions ETFs is typically low expenses where's this caught again. This is that eleven basis points turnout which is. Super cheap for the category it's that's probably one of its biggest advantages that it's not cost a lot on. And when we hear the words total international stock what does that mean they're actually buying. So it was pretty much everything like this that the sports not only develop markets but emerging markets but also expense not only to large cap stocks globally down water to small cap stocks at all spears super diversified with this on a secret ballot at about 6000 disk docs and and the portfolio. Are there any particular areas that are more heavily weighted either geographically or on a sector by say. So overall I think if you're gonna what it. The first words what is between development emerging so right now it's about 85% of bird bird QB 85% of all markets and 50% emerging market. But overall it really diversify his very well prospectors. And stocks. You mentioned that it does have some mid and small cap exposures is still predominantly a large cap holding. We still classified as a large cap holding and that's largely because its market cap weighted towards automatically going to skew towards a larger stocks India and the universe. It what do you get on something like this off from an income perspective does that produce anything meaningful or not a ton there. So it's not gonna produce at times and not focus on income but it doesn't have a higher fuel in the US. This on comes in and about it 2.5 percent you are now. Compared to the US which is all under 2%. Looking at who this fund could be a good fit for potentially is there anyone who you say hey this is something that you need to have in your portfolio. You know it's it is really. Could go for anyone who competed international exposure especially people Oregon and started out probably have a lot of higher allocation towards stocks are not enough. Very defense position right now you know. So yeah. Really it's anyone can perform exposure that are ordered orange docks particularly young people were relative to stocks heavily. Any downside or anything that someone needs to be aware of when their buying this. It's gonna be a little more restaurant in the US so you don't expect a little bit higher volatility and it just comes from foreign exchange risk but. That's system that. You know it is it is apparent to any foreign stock on. All right very good day and we appreciate the time and thank you very much. I Dan Soto were up for morning start talking about the vanguard total international stock ETF the ticker on that by the way. Is VX. You pass a part of the logic there would be utes less expensive than domestic and it is it's a lot of those indices what you're talking about you on the develop markets under some emerging markets right now. Are cheaper than what you see in the US the US has been. You know be in too heavily. Largely largely because it's the most stable place in the world still and there's a premium towards that stability it's a case where investors have said. Look if you know other parts of the world have questions of Brazil's economy is going through problems in Europe has shown slow growth. Hey maybe we don't wanna go into those areas and so we put our money in the US. But with Europe starting to turn around some emerging markets starting to rebound as well it's a case where investors may look to these airs and say. It these are get cheaper now and there might actually be a little growth companies let's let's assume you put a 100000 dollars US dollars into that investment yup. And the dollar then rallies 10% yet what app. So that is a concern of the dollar gets stronger and you're holding an international holding. You do take on some currency risk there you could see some of the stocks could do those foreign stocks you have might do very well but he gives them in the currency but conversely if you those stocks do well in the end the dollar goes down you make double. And that's kind of what's happened this year if you look at some of these international indices year to date this fund is up 21 point 55%. And if you compare that to most popular US ET coupled SP why the S&P 500. That's up fifteen point 52 public Twitter retired investor say or seven years old and in you've got maybe 7% your money invested in stocks how much. Of that 70%. Would be invested outside the US probably ten to twelve you know in that ballpark.