Rain comments on Less Wrong Product & Service Recommendations - Less Wrong

24 Post author: lukeprog 02 July 2012 01:18PM

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Comment author: Athrelon 02 July 2012 05:37:47PM 5 points [-]

Any thoughts on getting globally diversified with index funds, and verifying said diversification? It's not trivial, since some index funds, especially international ones, are heavily biased towards one category of company. A "China fund" composed only of state-owned enterprises is not nearly as diversified as it could be.

Comment author: Rain 02 July 2012 09:56:31PM *  4 points [-]

Vanguard provides VGTSX (Total International), which attempts to invest in non-US markets in a balanced and diversified manner. I consider an international fund crucial to maintaining diversification, though many people feel it's too volatile. It was the only thing I found in all my reading where people had widely varying opinions with no true consensus, in which case you should go with your risk tolerance.