The deposit for my Tax Year 2006 Roth IRA just went through. So now I have $4000 sitting an account waiting to be invested. I’m looking for an ETF to invest in. I have $8000 in Vanguard Small Cap ETF (VB). I have another $8000 in Vanguard Total Market Index (VTI) and another $4000 in Amex Technology Spiders (XLK).
I’ve been thinking about iShares MSCI EAFE Index Fund (EFA). I feel the economy getting more and more global every day. If people overseas can do the same job as Americans for 1/10th the money, then business will follow. The American economy will either suffer or those countries will have great wage inflation. Perhaps I’m wrong about this, but I can’t see how the wage difference can go on forever. I’m also thinking about Vanguard Health Care (VHT). America has more aging people than ever – and they are living longer. Everyone will need more medications, more health care. That means more dollars going to the companies that provide solutions. Lastly, I wouldn’t be opposed to expanding the small company or total market portions of my portfolio either.
I like to be diversified in ETFs. They generally have low expenses and allow for easy diversification. What would you suggest?