Hey all,
My 401k has limited international options – two Collective Investment Trusts that track the Intl Developed and Emerging Markets MSCI indexes along with RERGX. Looking at the history of each, while RERGX has a much higher expense ratio (0.46 vs approx. 0.03), RERGX has historically beaten the overall international index. I generally try to follow more of a Bogleheads philosophy of getting the low cost index, but international has been such a dog historically I'm tempted to go with this growth fund instead. Boglehead philosophy generally says to just grab the entire market (e.g., VXUS) in an IRA, but the historical returns just haven't been good comparatively.
I know I shouldn't be focusing on historical trends, but with international being so broad I'm almost thinking that having an actively managed fund that selects solid growth companies would be better than buying the entire haystack. I know an expense fund of 0.46 isn't ideal, however it also isn't horrendous if you look at past performance compared to international indexes. Thanks for any thoughts/input!
Leave a Reply