AssetBuilder Inc. Registered Investment Advisor - Simple Investing. Smart Future.

What do you think about an international small-cap value fund (like http://www.wisdomtree.com/library/pdf/fundfacts/WisdomTree-FactSheet-DLS-118.pdf) as an addition ot the 10-Speeds?  I know 10-speed already has an international value fund.

The primary concern is the asset class. After that you can have long arguments about the best way to capture the return of that asset class. For do-it-yourself investors Vanguard delivers traditional capitalization-weighted index funds at very low cost, significantly lower than Wisdom Tree ETFs.

Wisdom Tree and the Research Affiliates fundamental index funds are a different indexing approach that may, over time, prove to be as good or better than the more traditional Vanguard approach.

Scott

FL-Man,

I noticed your post to Scott.  And, while I think the various couch potato portfolios all have “cute” names, they aren’t all that efficient.  They do as Scott promised.  They keep you out of the wire houses which improves your chances of doing better.

You had asked about the Wisdom Tree ETF (DLS).  As for international small value, it is an excellent choice especially if you’re looking for current income from your portfolio.  While it has only been around a short period (24 months), its existence (Wisdom Tree) predates Asset Builder.  The index data used for the construction of the ETF is simulated back to 1998, much like the results Asset Builder displays.

During the period in which the ETF has been “live” it has beaten both the MSCI EAFE Small TR (Index), and interestingly enough, DISVX (DFA International Small Value), the international small cap value component held in Asset Builders portfolios.  And, while Scott is correct it has a higher expense ratio than the Vanguard International Value (not uncommon for small capitalization funds), it has a lower expense ratio than DISVX which Asset Builder includes in its own portfolios.

A. Dunlap