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How to diversify beyond IVV and VAS — VEU vs IVE/VGE vs individual markets?
Investing Strategy
I'm planning to build a long-term ETF portfolio with: 60% IVV (US exposure) 20% VAS (Australian exposure) For the remaining 20%, I'm a bit stuck. I'm considering: VEU – Broad international (ex-US), including emerging markets. Seems promising but I'm concerned about US-domiciled tax implications (W-8BEN, estate tax etc). IVE (ASX) – Developed markets only (e.g. JP, EU), but excludes emerging markets. Higher management fee though. VGE – Emerging markets only (China, India, etc.) but again, high fee and excludes developed markets like Japan and Europe. Or... building my own mix with country-specific ETFs (e.g. Japan and India) — this was also suggested by my financial adviser. What would you do for global diversification in this case? Stick to one global ETF (like VEU)? Or go the custom route with IVE + VGE or individual country ETFs?
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Commsec lists VEU as domiciled in Australia, so where are you seeing these tax implications?
For emerging markets, I have IEM with management fee of 0.69% so not as cheap as many others.
I used to have CNEW (China New Economies), but got out when US and Australia were criticising China for covid and subsequent sabre rattling. CNEW has 0.95% management fee.
My fallback is NDIA, again 0.69% fee but hasn’t performed as well as IEM.
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