MHh
2022-04-01

Previously shared on $Vanguard Total Stock Market ETF(VTI)$and mentioned that it is a little under for emerging markets. If you like to specifically have exposure to emerging markets such as China, Brazil etc or simply want to boost/ complement $Vanguard Total Stock Market ETF(VTI)$, can consider $Vanguard FTSE Emerging Markets ETF(VWO)$.


It has expense ratio of only 0.08% so this is a really cost efficient way to gain exposure. However, for Singapore investors, there will be 30% withholding tax for dividends.


The upside for emerging markets is high, but the converse is also true. So consider this only if you intend to have medium term exposure of at least 3 to 5 years. 


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Comments

  • PandoraHaggai
    2022-04-01
    PandoraHaggai
    I also think investing in emerging markets is the right thing to do.
    • MHh
      [ShakeHands]
  • BellaFaraday
    2022-04-01
    BellaFaraday
    Does the Vanguard FTSE Emerging Markets ETF include stocks in the Brazilian market?
    • BellaFaradayReplyMHh
      Thank you very much for your recommendation. It's very helpful to me.
    • BellaFaradayReplyMHh
      Ok, I'll go to look up vwo.
    • MHhReplyBellaFaraday
      Probably need to look around if there are other ETFs for emerging markets
    • BellaFaradayReplyMHh
      I think Brazil and India are both potential countries. The low cost of labor will attract large companies to invest here.
    • MHhReplyBellaFaraday
      I see. You will be glad that it contains India too! Not sure if there are specific India or brazil ETFs.
  • ElvisMarner
    2022-04-01
    ElvisMarner
    The tax withholding on this dividend is a bit too much.
    • ElvisMarnerReplyMHh
      You're right. It's more important to focus on the company itself.
    • MHh
      As long as foreigners, it will be this percentage. But the main aim is for growth. Dividend is just a bonus. That’s how i see it
  • Momochoding
    2022-04-03
    Momochoding
    thanks for sharing
  • Tiger 88
    2022-04-02
    Tiger 88
    Thank you for sharing [smile]
    • MHh
      Thank you[Happy]
  • SNOOKER76
    2022-04-04
    SNOOKER76

    Good article

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