Should We Invest in Emerging Markets?

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A total international fund will include some exposure to emerging markets. The question we cover in this video is whether we should seek additional exposure through an emerging market ETF or mutual fund.
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While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
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Опубликовано:

20 сен 2024

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Комментарии : 56

@NouraEl-k1l Год назад

Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.

@graywilliams_77. Год назад

I'm pleased to have come across this conversation. Could you kindly provide me with the contact information of your investment advisor? I am in urgent need of one.

@graywilliams_77. Год назад

Thank you for providing this helpful pointer. I managed to find the contact information for ROCH DUNGCA-SCHREIBER , and she appears to be highly skilled and adaptable. I have scheduled a call session with her.

@mikephilpot9857 Год назад

For me, I’m definitely keeping emerging markets in my portfolio. I want to own the entire world market and I don’t want to miss out on the countries that are included in my emerging market funds. I just made sure to find the emerging market funds that complemented the rest of my portfolio. e.g. If I already had the South Korean market in an international fund, then I wanted to find emerging market funds that didn’t include South Korea. Definitely a crazy ride, but worth it, imho. Down this year, but it’ll be back up other years. I’m a firm believer in more diversity and without emerging markets, I’m gonna miss out on about 11% of the world’s equities by market cap. Plus, emerging markets make up 45% of the world’s GDP. I definitely want to participate in that. 👍

@evanwheeler7687 Год назад

3:36 Specific small cap value funds outperform because of their exposure to risk factors that carry empirically provable premiums, such as Size (small vs. big), Price (low vs. high), Profitability (more vs. less), Investment (less vs. more), and lastly, Market risk, which everyone gets if they broadly diversify their holdings. Anyone interested in better risk adjusted returns should read about factor investing and Eugene Fama and Ken French's groundbreaking research on the topic. Dimensional Fund Advisors and Avantis both have factor mutual funds and ETFs tailored to these investing strategies. RU-vidr and wealth manager Ben Felix also has multiple podcast episodes and a community forum (Rational Reminder podcast and RR Community) focusing on these topics.

@Mosesusorer Год назад

Yesss!! Ben Felix is my favorite

@evanwheeler7687 Год назад

@@Mosesusorer Mine, too! His videos and podcasts got me into the topic and then i did additional research on the funds. The RR Community is great, btw. Highly recommend the forum.

@todd5982 Год назад

you are correct

@Azgharvideos 9 месяцев назад

Do you know the best proportions to allocate to such tailored funds (and i think to Avantis AVUV) . Or maybe link to some research on the subject ? Thanks !

@evanwheeler7687 9 месяцев назад

@@AzgharvideosHi there! I invest in both AVUV and DFSV to sort of split institutional risk between the two firms. My portfolio is basically 75% VTI for total US market exposure and then 25% split between AVUV and DFSV. I've got some other funds, as well, but that breakdown represents the vast majority of my holdings. There is a ton of discussion on the RR forum about portfolio allocation. Admittedly, mine is pretty aggressively weighted towards the factors and you can slide the percentages up or down depending on how much risk you can handle.

@okrajoe Год назад

Personally, my roller-coaster ride on Emerging Markets was no fun...

@royprovins7037 Год назад

When the US goes down they all go down. Jack Bogle

@Random-yq1wu Год назад

Exactly,

@FatherGapon-gw6yo 4 месяца назад

Not anymore.

@IndexInvestingWithCole Год назад

I liked this video because he confirmed my biases by liking the stocks I like!!

@マリーゴ 2 месяца назад

Investing is unstable, but it's a good learning experience I think

@kona6451 Год назад

All I know is my VEMAX has cratered.

@greggarner9515 Год назад

Hi, I think most Middle East/Africa and Latin America are considered Emerging Markets, so that adds another ~7% to the 16% you discuss in the video, right?

@seetheforestthroughthetrees Год назад

Yes, the MENA area is definitely considered emerging markets.

@politicscommentator Год назад

Me, personally, I like to have emerging markets within a total international fund. Less micromanaging. That is why I think 15%-20% in total international fund works fine with the percentage goal you are looking for in emerging markets.

@InspireMe819 5 дней назад

Dividend is only carrying my fpadx

@stevenblackthorne4790 Год назад

VTAIX has returned 3.31% per year, on average, over the last ten years. VOO, over the same ten year timespan, has returned an average of 11.66% per year. Sure, that might change tomorrow, but lord, with returns that divergent, I simply cannot get myself to buy VTIAX for the sake of diversification.

@ItsGamein Год назад

a decade isnt long enough for comparison, if you look back 40+ years it flips back and forth on whether the us or foreign stocks are better performing

@Starstreak170 Год назад

Submerging markets.

@joaopaulotavaresdasilva7528 Год назад

Brazil had 7 currencies since 1822. Our currency was only created in 1994 after many unsuccessful attempts to fight hyperinflation. We had dictatorships. Two presidents impeached in the last 20 years. There was a savings confiscation in 1990. And there are still many companies that manage to survive all that. And it's still profitable long term and a good idea to buy stocks here lol.

@FatherGapon-gw6yo 4 месяца назад

My India/Turkey/Japan mix is a serious performer with great dividends that make nutty US volatility look like an amateur circus.

@anonyfamous42 24 дня назад

Japan is not emerging

@FatherGapon-gw6yo 23 дня назад

Only India is still doing well and that went nutso around modi election.

@hanwagu9967 Год назад

vanguard shows 26.80% emerging markets Regions.

@Kushagra.j Год назад

We welcome you guys to Invest in India 🇮🇳

@GloriaReed-h1d 7 месяцев назад

Eh, as globalization slowly ends, I recommend sticking with the USA. Even during the peak years of globalization Jack Bogle recommended US-only funds.

@FatherGapon-gw6yo 4 месяца назад

Uncorrelated returns are the only free lunch in investing.

@george6977 9 месяцев назад

Ben Felix covered the evidence on emerging markets. They diversify a portfolio. Russian stocks lost 100% by invading Ukraine. How much will China stocks fall when they invade Taiwan?

@coderider3022 8 месяцев назад

World would be screwed, not just EM and pacific.

@jeffsim4191 Год назад

Yes. Emerging markets = exposure to commodities at low prices

@hanwagu9967 Год назад

not necessarily, if you wind down into what the funds are actually investing in.

@krdxz Год назад

Ben Felix had pretty good video on that, and the answer was pretty much 'no'.

@davidruiz9332 Год назад

Thats funny cuz his own portfolio has a lot of developed int. markets and 10% in Emerging markets!

@krdxz Год назад

@@davidruiz9332 I was referring to the strong evidence he presented that growing economies of emerging markets do not translate into proportional stock gains. Given the additional risk level that one takes investing in EM it begs the question if it's worth it. Why does he still recommend ~10% investment in emerging markets then? My guess is for diversification.

@emrahgedik1727 Год назад

what is the difference between "İshares core MSCİ emerging" and "Vanguard FTSE Emerging"? inner is almost the same. OOk with country distribution. which one will be better? Have noticed that with "Vanguard emerging" no "samsung" is in the top 10-20.. Maybe that's a small difference. Thank you..

@coderider3022 8 месяцев назад

South Korea is developed in ftse but emerging for Msci. Few others but Tiny.

@richardhead2318 Год назад

No.

@alex182618 Год назад

There is no country on the world map called “emerging markets.” These countries are called 🇨🇳 China, 🇮🇳 India, 🇧🇷 Brazil, 🇲🇽 Mexico and others. I prefer to choose. I don’t want my money to be where there is no democracy. I am just a foreign investor there with no rights.

@hanwagu9967 Год назад

well, considering almost all international corporations have high exposure to those countries, I would say your money is already there.

@robertalexandro2162 Год назад

I've been considering buying ETFs/SCHD stocks for retirement, I have set asides $100k but somewhere along the line, I get cold feet maybe because I'm a rookie and have no idea what I'm doing, please I could really use some guideline

@robertalexandro2162 Год назад

@@lorihomer1721 A coach sounds like a good idea, but how can I get a reliable one considering the nature of the market today?

@SpartanOfFinance Год назад

Emerging markets are where investor dollars go to die. Too much in China!

@miri9600 Год назад

dollars will go home to US soon and then they die because EM and China do not want them anymore

@jan2000nl 7 месяцев назад

No. They are a basket case with strongmen at the helm doing whatever they want. Kind of hard for Capitalism to work under those circumstances.

@Random-yq1wu Год назад

No point in owning emerging anything or foreign anything.

@coderider3022 8 месяцев назад

Us is in decline, that’s why you need to spread it.

@User4231-k5s Год назад

Eh, as globalization slowly ends, I recommend sticking with the USA. Even during the peak years of globalization Jack Bogle recommended US-only funds.

@shun2240 Год назад

You know nothing, Jack also know nothing, globalisation is even more of a reason to own global funds, the correlation between different countries will be lower and this can potentially smooth out returns

@coderider3022 8 месяцев назад

True in past but not for future.

@FatherGapon-gw6yo 4 месяца назад

The end of globalization means uncorrelated stocks just waiting to make your portfolio more perfect.