WHY DOES JtB USE VANGUARD INTERNATIONAL GROWTH RATHER THAN INTERNATIONAL STOCK INDEX?
Vanguard Total International Stock Index is a “fund of funds,” splitting its assets among three other international Vanguard index funds (European, Pacific, and Emerging Markets). Four of the five years this index fund has been open, it has trailed the returns of the International Growth fund. The explanation is the flexibility Int’l Growth enjoys to invest in the regions the manager finds most attractive, rather than being locked into a fixed regional mix. Until the index can demonstrate that its approach is preferable, we’ll continue to stick with Int’l Growth.
