NY 10036. We also reference original research from other reputable publishers where appropriate. It holds only tax free bonds as far as I know. Another consideration is how much you'll spend on your funds. Here are seven top options. More impressive is the long-term track record, with VFIAX's 10-year return besting 68% of category peers. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. Investors should do their due diligence research and/or use an investment professional. . This site is protected by reCAPTCHA and the Google This capital is invested in different securities, giving investors exposure to different assets. The expense ratio for VTMFX is 0.09%. The best types of investment for retirees are those that provide a form of income and provide a low level of risk. That puts its allocation in line with Vanguard's Target Retirement Series, which dedicates 40% of its equity exposure and 20% of its fixed-income exposure to international securities throughout the glide path. Here are the top holdings: 3. Setting Expectations Going Forward How long can the good times last? "Stock Fund: Characteristics. Vanguard index funds are among the cheapest, easiest solutions for investors looking for diversified core holdings. Note: This fund also is available as an ETF the Vanguard FTSE Emerging Markets (VWO (opens in new tab)), which charges 0.10% annually. It has the same asset weighting as its counterpart. And in Wall Street, much like in fables, the tortoise tends to win. VBIAX vs VBINX Many of the funds are low cost indexed equity growth funds which benefit from capital gains taxes. The results showed that the portfolio's 10-year annualized returns of 10.79% over the period ended April 30, 2019, were the third-best out of the 198 rolling 10-year periods we looked at (the best was the 11.69% annualized return for the period ended Feb. 28, 2019, so apologies to readers for being two months late on catching this phenomenon). Analysts Disclosure: I/we have a beneficial long position in the shares of ARBIX, COTZX, CRAAX, FSRRX, TMSRX, VGWAX, VSCGX, VTWNX, VTINX either through stock ownership, options, or other derivatives. How we use your information depends on the product and service that you use and your relationship with us. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. Read our, 10 Best Vanguard Funds To Hold for Long-Term Investing, Why Vanguard Total Stock Market Index Is the Biggest Fund in the World, 5 Best Vanguard Funds to Buy From 5 Different Categories, Top 9 Things to Know About Mutual Fund Taxation, How Tax-Managed Funds Help Lower Your Tax Bill, Best Vanguard Funds for International Stocks, Build a Portfolio With the Best Vanguard Funds, Vanguard Total Stock Market Index (VTSAX), Vanguard Tax-Managed Capital Appreciation Fund (VTCLX), Vanguard Tax-Managed Balanced Fund (VTMFX), Vanguard Intermediate-Term Tax-Exempt Fund (VWITX), Questions and Answers on the Net Investment Income Tax, Mutual Funds (Costs, Distributions, Etc. And it is only your more tax-efficient assets that you hold in a taxable account to the extent possible, anyway.) 1. Vanguard Index Funds - Vanguard Total Stock Market ETF is an exchange traded fund launched and managed by The Vanguard Group, Inc. The model's base case for a globally diversified 60/40 fund over the next decade is 4.9% returns with roughly similar volatility as a U.S.-only 60/40 portfolio. 2021 is likely to be no exception to this wisdom. If you have an ad-blocker enabled you may be blocked from proceeding. If I harvest a loss in Account #1 at, say Vanguard, can I use that loss to offset a harvested gain in Account #2 at, say, Schwab? Future US, Inc. Full 7th Floor, 130 West 42nd Street, You'll have a gain for which you'll owe tax when you sell a fund at a price (NAV) higher than what you paid for it. ", Vanguard. See Vanguard Balanced Index Fund (VBIAX) mutual fund ratings from all the top fund analysts in one place. That translates into lower returns and higher risk. By taking the passive management route from any fund provider, investors can remove manager risk, diversify by tracking a broad market index, and potentially outperform the category averages. resulting in the Finny Score of 40. When will consumer activity return to 2019 levels? Active managers want your money - our advice: keep it! Source: Created by the Author using Mutual Fund Observer. Do my fellow Bogleheads think this is a good move? The best way to win in the long run is often to avoid losing in the short term. Email: ssmtoffice@gmail.com / ssmtpmu@gmail.com / ssmtjobs@gmail.com As an example of tax asset location strategy, a couple filing jointly with household income of $200,000 per year will fall in the 24% marginal tax rate as shown in Table #2. Returns and data are as of Jan. 24, unless otherwise noted, and are gathered for the share class with the lowest required minimum initial investment typically the investor share class or A share class. I provide a list of some of the changes from Details and Analysis of President Biden's FY 2022 Budget Proposals below. Index investing is a passive strategythat attempts to track the performance of a broadmarket index such as the S&P 500. Investors looking for a little more "oomph" in their portfolio might want to consider Vanguard Extended Market Index Admiral (VEXAX (opens in new tab), $133.85), which invests primarily in mid-cap stocks, as well as some small caps. Of course, these are just educated estimates and no one, not even Vanguard, expects to hit their 10-year estimates on the nose. VBIAX weaknesses I'll probably contribute $100-$200 a month. Warren Buffett Stocks Ranked: The Berkshire Hathaway Portfolio. comparison details. Maintaining independence and editorial freedom is essential to our mission of empowering investor success. Go back 15 years, which includes two of the worst bear markets in history, and the case for VBINX is compelling. Scott Stratton, CFP and president of Good Life Wealth Management, likes the Vanguard Equity Income Fund Investor Shares (VEIPX). Jack founded Vanguard and pioneered indexed mutual funds. Wall Street analysts believe these five stocks should be near the front of your sell list. You can buy municipal bond funds if you're looking for income-generating funds. (6.79% vs 11%). Check Vanguard's dividend schedule for a full breakdown of dividend dates. Top holdings include the likes of Zoom Video Communications (ZM (opens in new tab)), Square (SQ (opens in new tab)) and Uber Technologies (UBER (opens in new tab)). For example, battered commercial real estate companies should be able to borrow at low rates and collect rents more reliably this year compared to last year. Vanguard Value Index Admiral (VVIAX (opens in new tab), $47.51) is a low-cost fund that plays on what's expected to be one of the big themes of 2021: value stocks. ", VEMAX holds more than 5,000 emerging markets stocks from dozens of countries primarily China (43%), but also Taiwan (17%), India (11%), Brazil (6%) and others. The Vanguard Wellington Fund Investor Shares, 6. By James K. Glassman If you want 50/50 allocation, the easy solution is to sell what you have (except the Wellesley), might be some nice tax loss harvesting opportunities, and then purchase more Wellesley and Wellington funds so you end up with 50% in each after. 0. VBTLX is a nearly 10,000-holding portfolio of U.S. investment-grade debt. Capital gains are generated when a fund manager sells shares of securities within the fund. Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Besides, balanced funds are too boring. And when you invest in Vanguard specifically, chances are you're getting that passive exposure at a dirt-cheap rate. It uses 60% of its assets to track the same index that underlies Gold-rated Vanguard Total Stock Market Index(VTSAX) and 40% of its assets to track the same index underlying Silver-rated Vanguard Total Bond Market Index(VBTLX). The Next Best Alternative? The minimum initial investment is $3,000. You'll still need to invest and make changes to your portfolio. That same principle applies whether you're just starting out in the workforce or if you've already retired. Boring is suddenly more exciting, isnt it? comparison details. "Vanguard Total Stock Market Index Fund Admiral Shares(VTSAX). Minimum investment is just $3,000. from our perspective: 9. (opens in new tab), The 21 Best ETFs to Buy for a Prosperous 2021. For further information, check out VBIAX vs FBALX comparison details. New comments cannot be posted and votes cannot be cast. Consider VTMFX to meet your needs if you're looking for a one-fund solution for your taxable account. Published 30 April 23. "Vanguard Wellesley Income Fund Admiral Shares (VWIAX): Price & Performance. You'll probably want to consider funds that provide you with a form of current income in order to supplement any benefits or investment income you're already receiving. "Vanguard Wellington Fund Investor Shares (VWELX): Portfolio & Management. 0. Copyright Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Your search can begin from there when you know which funds are right for your goals. The focus of the discussions is on topics related to early retirement and financial independence. This early retirement and financial independence community is a member of the Social Knowledge network, a group of high quality forum communities. At the moment, it's heavily weighted in information technology stocks (28%) such as Apple (AAPL (opens in new tab)) and Microsoft (MSFT (opens in new tab)), with large weightings in healthcare (14%) and consumer discretionary (13%) that latter sector is bolstered by large slugs of Amazon.com (AMZN (opens in new tab)) and Tesla (TSLA (opens in new tab)). Buy, hold, rebalance, and stay the course! The quickest way to lose when you're investing in taxable accounts is by doing so in the types of mutual funds that incur the most in taxes. The portfolio for VBINX invests in a moderate allocation of approximately 60% stocks and 40% bonds by tracking two indices that represent broad exposure to the U.S. equity and U.S. taxable bond. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 1125 N. Charles St, Baltimore, MD 21201. Since VBIAX is a moderate allocation fund, typically investing in a roughly 60/40 split of stocks and bonds, investors won't likely log in top performance for any one-year period. Taxable accounts and tax-deferred investment accounts each have unique advantages . As of March 31, 2022, the fund's one-year and 10-year returns were 3.60% and 6.95%, respectively. This article is for information purposes only, thus under no circumstances does this information represent a specific recommendation to buy or sell securities. For example, according to "The Number of People With IRAs Worth $5 Million or More Has Tripled, Congress Says" there are 28,000 people with IRAs larger than $5 million. Read our editorial policy to learn more about our process. Should I switch VBIAX to VTIAX or VTWAX? If the correlation of U.S. stocks and bonds stays near zero, which it was over the previous 10 years, that would translate to annualized volatility of about 9.69% over the next decade for this fund, which is basically equal to the average over all the rolling 10-year periods since the fund launched. Heres how it works. Each month, I download metrics from the Lipper Database using the Mutual Fund Observer Multi-Search Screens. Thats exciting. The Muse de Grenoble, right in the heart of the city, has an astonishing collection of 900 works of fine . That is a bit more along the lines of what I am thinking, but more than three funds -- perhaps 5-8 funds. The expense ratio for VTMFX is 0.09%. You can learn more about the standards we follow in producing accurate, unbiased content in our. Vanguard Index Funds - Vanguard S&P 500 ETF was formed on August 31, 1976 and is domiciled in the United States. The Vanguard PRIMECAP Fund Investor Shares, Growth and Income Fund: Definition, Investment Mix, Examples, Benchmark: What It Is, Types, and How to Use Them in Investing, Investing in an index: overview, examples, and FAQ, Balanced Fund: Definition, Investment Mix, Examples, Morningstar Finds Falling Fees Saved Investors $6.2 Billion in 2020, Vanguard Wellesley Income Fund Admiral Shares (VWIAX): Overview, Vanguard Wellesley Income Fund Admiral Shares (VWIAX): Portfolio & Management, Vanguard Wellesley Income Fund Admiral Shares (VWIAX): Price & Performance, Vanguard Wellesley Income Fund Investor Shares(VWINX): Overview, Vanguard Wellesley Income Fund Investor Shares(VWINX): Portfolio & Management, Vanguard Wellesley Income Fund Investor Shares(VWINX): Price & Performance, Vanguard Equity Income Fund Investor Shares(VEIPX): Overview, Vanguard Equity Income Fund Investor Shares(VEIPX): Portfolio & Management, Vanguard Equity Income Fund Investor Shares(VEIPX): Price & Performance, Vanguard Wellington Fund Investor Shares (VWELX): Overview, Vanguard Wellington Fund Investor Shares (VWELX): Portfolio & Management, Vanguard Wellington Fund Investor Shares (VWELX): Price & Performance, Vanguard PRIMECAP Fund Investor Shares (VPMCX): Overview, Vanguard PRIMECAP Fund Investor Shares (VPMCX): Portfolio & Management. Finally, this is a dumb question: how do I go about switching funds? VBIAX has a lower 5-year return than VOO "Stock Fund: Overview. Unlike a mutual fund account, a Vanguard brokerage account gives you more flexibility to buy stocks and ETFs. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. Or something else? No recommendation or advice is being given as to whether any investment is suitable for a particular investor. These are some of the best Vanguard funds for taxable accounts, in no order. "Tax-Efficient Equity Investing: Solutions for Maximizing After-Tax Returns," Page 3. IRS. * SEC yields reflect the interest earned after deducting fund expenses for the most recent 30-day period and are a standard measure for bond and preferred-stock funds. Vanguard Real Estate Index Admiral (VGSLX (opens in new tab), $121.58) had a rough 2020 that saw it lose 5% while the broader market ramped up by 18%. The Old-Age [social security] and Survivors Insurance (OASI) Trust Fund, which pays retirement and survivors benefits, will be able to pay scheduled benefits on a timely basis until 2033, one year earlier than reported last year. quotes delayed at least 15 minutes, all others at least 20 minutes. comparison details. "Vanguard Wellesley Income Fund Admiral Shares (VWIAX): Overview. VBIAX has a lower expense ratio than VTSAX ratio (%). The roles of some funds in my portfolio are to manage risk or inflation including Fidelity Strategic Real Return (FSRRX), Columbia Thermostat (COTZX), Columbia Adaptive Risk Allocation (CRAZX), T Rowe Price Multi-Strategy Total Return (TMSRX), and Absolute Strategies Conv Arbitrage (ARBIX). The best mid-cap stocks are the market's so-called "sweet spot," offering up an ideal combination of financial stability and growth potential. Remember that you shouldnt go out and buy these funds because of our recommendation. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. The median market cap of stocks in the portfolio was $147.9 billion. Free shipping for many products! Over time, putting tax efficient equities with higher returns in a taxable account or Roth IRA and taxable bonds in a traditional IRA can add up to significant savings in taxes. To give you an idea, top holdings include the likes of telecommunication infrastructure REIT American Tower (AMT (opens in new tab)), logistics specialist Prologis (PLD (opens in new tab)) and data center play Equinix (EQIX (opens in new tab)). My taxable accounts (51% of my total portfolio) have the unruly and disheveled composition shown below. In an uncertain market, the best consumer staples stocks provide consistency and stability to portfolios. You can look up a mutual fund's turnover ratio. Another aspect of the real estate sector that may look good to some investors is that the yields on real estate investment trusts (REITs), at 3% to 4%, are generally good and especially attractive compared to the low yields on the S&P 500 index, at around 1.6%. The average expense ratio for actively-managed funds compared to passively-managed ones in 2020. In the Lyon and Grenoble metropolitan areas, and the Haute-Savoie department, INRAE units contribute to research activities at the Lyon-Saint-Etienne, Grenoble-Alpes, and Savoie Mont Blanc . between VBIAX and VWINX. Below is the comparison Is there a downside to also having my taxable account 100% VTSAX? It produces 11.4% of national wealth, and its GDP is equivalent to that of Finland. Scan this QR code to download the app now. It has a one-year yield of 21.8% and a 10-year yield of 9.01%. Vanguard LifeStrategy Moderate Growth invests in the total U.S. stock and bond markets, too, but it distinguishes itself from its sibling through a significant allocation to international stocks and bonds. editorial policies. Wed like to share more about how we work and what drives our day-to-day business. What are the cons of investing in Vanguard Tax-Exempt Bond Index Fund Admiral Shares (VTEAX)., Vanguard. Vanguard Tax-Managed Capital Appreciation Fund (VTCLX) Vanguard offers many tax-managed funds, and VTCLX is one that provides the broadest exposure to stocks. A Taxable Account Isn't Actually That Bad. The low turnover with index funds means that lesser capital gains are produced. These funds are largely tax-inefficient and are in tax advantaged accounts. The Lipper Tax Efficiency Rating is high (5) for almost all funds and the tax cost is low. Category: Allocation 30-50% Equity. This is an income-oriented balanced fund that provides investors with exposure to both investment-grade bonds and equities. Tax-efficient strategies, such as tax-loss harvesting and the "bucket system approach," can be implemented if you need to generate income from mutual funds in taxable accounts. Last year taught investors that it's never wise to make broad predictions about capital markets and the broader economy at least not without a backup plan. As of this writing, Kent Thune did not hold a position in any of the aforementioned securities, although his firm holds VWINX in client accounts. "Vanguard Tax-Managed Capital Appreciation Fund Admiral Shares(VTCLX). perhaps you're looking for VBIAX fact sheet, and learn about its To be fair, seven of the 153 funds in the allocation--50% to 70% equity Morningstar Category had as good or slightly better risk-adjusted returns over the decade, so there was some room for improvement, but it has still been a fantastic time for simplicity. VBIAX is a mutual fund, whereas VTI is an ETF. Investors have to calculate the trade off between selling to reduce risk when the market is high and incurring more taxes. . Investments held in a regular brokerage account are taxed on capital gains, as well as on interest and dividends. In a volatile year like 2020, when the S&P 500 ended 18.4% higher for the year, VBIAX was up 16.4%. historical returns? It also earns a Gold rating and has a similar risk profile to Vanguard Balanced Index. Second, an all-in-one fund (even a tax-managed one) gets in the way of an asset location strategy. Learn more about VBIAX at the Vanguard provider site. 3.) Learn more about VVIAX at the Vanguard provider site. You can't get much more diversified than VBIAX. VBIAX has a higher 5-year return than VBINX ETFs vs. Mutual Funds: Tax Efficiency.. Expenses: 0.23%. Put all that money in VG Tax-Managed Bal Fund Adm since it is 50/50 I don't you dollar amounts but it looks like that is a way to get 7 things into one. Vanguard 500 Index Admiral (VFIAX (opens in new tab), $354.73) should be one of the best Vanguard index funds for 2021, 2022 and every year after for the plainest of reasons: It's cheap. (opens in new tab). from our perspective: 10. It provides exposure to Treasuries, investment-grade corporates, government mortgage-backed securities and more. The minimum investment is $10,000 to start out. Retire Secure! Most of these funds received Morningstars five-star rating. Note: This fund also is available as an ETF the Vanguard S&P 500 ETF (VOO (opens in new tab)), which charges 0.03% annually. comparison details. While investors should at least be prepared for higher volatility from the fund going forward, return expectations should also be moderated. Top holdings at the moment include Berkshire Hathaway (BRK.B (opens in new tab)), Johnson & Johnson (JNJ (opens in new tab)) and JPMorgan Chase (JPM (opens in new tab)). VTSAX profile: Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Provide specific products and services to you, such as portfolio management or data aggregation. If it feels like diversifying beyond a simple moderate portfolio that owns one U.S. stock index fund and one U.S. bond index fund has been a fool's errand over the past decade, there's good reason for that. I may be incorrect but once you withdraw contribution for a particular year you can't put it back in but I could be wrong with . (opens in new tab), The Best T. Rowe Price Funds for 401(k) Retirement Savers. and It uses SEC Performance and After-Tax Performance as underlying data. U.S. One should be mindful of how income levels impact Medicare premiums when determining how much to convert. The information is being presented withoutconsideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. I hope I can get some advice. (opens in new tab), The Best American Funds for 401(k) Retirement Savers. (The total of more than 28,000 people holding IRAs of that size includes both traditional and Roth IRAs.) The article describes the advantages of a taxable account as: Bogleheads provides the following chart of tax efficiency. The worst types of funds to hold in a taxable account include actively managed funds with high turnover ratios, funds that pay above-average dividends, and most types of bond funds. A couple of years ago I rolled over a lump sum pension payout into VBIAX at Vanguard. But Vanguard Wellesley has produced these returns with one arm tied behind its back (or behind its tortoise shell, as it were). The following are The expense ratio for VTSAX is 0.04%. If you only hold Vanguard mutual funds, then you won't notice a difference, but it may be worth transitioning, especially if you ever want to buy individual stocks. Taxable accounts are an option for diversification or when contributions have been maximized. Learn more about VBTLX at the Vanguard provider site. But what percentage of the population will embrace them? 3,359 stock holdings I am an engineer with an MBA nearing retirement and not an economist nor an investment professional. The final section lists twenty two tax efficient funds suitable for many taxable accounts selected using tax and risk Metrics from the Mutual Fund Observer Multi-Search Tool. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.. For additional financial information on Vanguard Marketing Corporation, see its Statement of Financial Condition: Audited and Unaudited VG Balanced Idx Fund Adm Shares is a very good fund and simple. Investing involves risk, including the possible loss of principal. Asset location strategies are described for taxable, tax-exempt (Roth 401k/IRA) and tax deferred (Traditional 401k/IRA) accounts. Putting those risk and return characteristics together, not only has it been one of the most profitable times for this two-fund portfolio, it's also been the smoothest ride to get there. These include white papers, government data, original reporting, and interviews with industry experts. They often have very low expense ratios as well, sometimes less than 0.20%, especially the ETFs offered by Vanguard. ", Investor.gov. Then sell as much VUG as you can to eliminate the losses as you are selling it will tell you what your estimated gain is and park those proceeds in VMMXX. ", Vanguard. The fund's standard deviation for the 12-months ended April 30, was 10.31%, about one-third higher than it was over the trailing 10-year period. Taxes are applied at the highest applicable rate. Is this happening to you frequently? All rights reserved. (6.79% vs 10.16%). A robo-advisor is a type of automated financial advisor that provides algorithm-driven wealth management services with little to no human intervention. The idea is to crystalize all the losses and then sell off any gainers that are not things you want to keep long run and let the losses offset the gains. Just how much of a shot in the arm to the economy will these vaccines bring? We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. The first section of this article describes tax efficient asset location strategies. In Vanguard's 2019 economic and market outlook, it forecasts future a median volatility of 16.3% for U.S. equities and 5.3% for U.S. bonds. They passively track a benchmark index, which translates to very low turnover, which occurs when securities like stocks and/or bonds are bought and sold within a portfolio. In the long run, the highest yielding funds often underperform and frequently have larger losses in bear markets because they tend to be concentrated in just a few sectors.. "Vanguard Tax-Managed Balanced Fund (VTMFX). In September 2019, I began contributing to the Mutual Fund Observer monthly newsletter. If youre looking for the best of conservative Vanguard funds for your taxable brokerage account, Vanguard Tax-Managed (MUTF:VTMFX) is your fund. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more! The Star fund just looks like a better balanced fund to me, but is it more volatile too? Scan this QR code to download the app now. Since you are mixing 60/40 and 40/60 nominal allocation funds, the result will give you 50/50 allocation. Mutual funds are investments that are managed by portfolio managers. Investors concerned about lower returns and higher volatility coming from U.S. allocation funds do have a solid alternative in Vanguard LifeStrategy Moderate Growth(VSMGX). quickly find it out by visiting Finny and ", Vanguard. Grenoble is rich in museums and historic landmarks with its Place Notre-Dame, a 13th-century cathedral, the Muse de l'Ancien vch and Fontaine des Trois Ordres, which commemorates the 1788 events leading to the French Revolution. Value investing beats growth in the long run, and the best way to participate in value is through funds. Rather than invest in a low-cost mutual fund consisting of a simple allocation of stocks, bonds and cash, many investors would rather try beat the S&P 500 which, of course, most investors dont do. Any sources of income (Social Security, other investments, any part-time or freelance work), What you want to achieve, whether that's long-term growth or current income. Despite continued macro headwinds, pockets of opportunity remain among the best communication services stocks. For further information, check out A benchmark is a standard against which the performance of a security, mutual fund or investment manager can be measured. Learn more about VBTLX at the Vanguard provider site. Vanguard Balanced Index is a moderate-allocation fund that earns a Morningstar Analyst Rating of Gold. The changes described in this section will impact after-tax returns of most investors, but I expect the changes for how the average middle class investor manages taxes to be small. 2.) My overall target asset allocation is serendipitously 50/50. As such, it may not be well-suited for most retirees, but it may work in a balanced portfolio. In summary, corporate taxes are likely to rise, as well as taxes on high income individuals. Jack founded Vanguard and pioneered indexed mutual funds. Top holdings such as Taiwan Semiconductor (TSM (opens in new tab)), Alibaba (BABA (opens in new tab)) and Tencent Holdings (TCEHY (opens in new tab)) aren't necessarily household American consumer names, but they're still well-known to many investors at this point.