How can i buy share in international markets?

I plan to buy vanguard emerging market ETF (VWO) currently trading at 43$. Is this the right time to do so. This yr the NYSE has been doing well and am not sure if I should currently go for emerging markets or US markets. What kind of correlation does SPY and VWO share?

• Answer:

  It really depends on what you hope to accomplish with the trade. By choosing a Vanguard fund I would assume that you're looking for a long-term investment. If that is the case I would not look at this as a questions of "Should I buy this one fund now instead of this other fund." Instead, I would suggest taking a broader picture of your long-term investment goals and creating a fully diversified choice. The great thing about Vanguard accounts (which I will assume you have as it eliminates transaction costs) is that due to the zero transaction cost you can buy as few of shares as you wish in as many funds as you wish (as long as you have over the minimum ~$5000). Therefore, answer questions such as to choose what you'd like to do: 1) How old am I 2) When will I need this money 3) How much risk am I willing to take with this money 4) Etc. The 6 month trends of a particular index should not be swaying your choice. Ideally you'll have this money in these funds for 20+ years. Emerging markets will be higher risk/reward and US markets will be more stable and return a steadier amount. Alternatively, if this is a short-term holding, I would questions whether you should choose a Vanguard fund at all since they have rules about how often you can buy in and out of a fund. Either way, if you only would like to invest for the short term you'd need to ask yourself whether you will "need" this money in the short term. If so, go for a safer option such as Vanguards large-cap fund. If you are investing hoping for a quick return and aren't concerned about losing the money, go for a small-cap fund or emerging markets. However, if you're just trying to get a quick return and are indifferent to the risk involved, you could just buy some options due to expire next week and hope for the best.