Vanguard Emerging Markets Index?

[ua1176]

hi everyone,

im 23 years old and have ~$30k spread across a few bank accounts. i'm looking to get off my lazy ass and start investing.

i'm ok with high risk investments. my goal is to maximize my return. i run my own business and it's growing decently so im not worried about bankruptcy should my investments lose $$$.

however, i don't know very much about investing.

i've been looking at some of the Vanguard #'s and it seems like the Emerging Markets index has a pretty good return.

if i stick $10k there now, is there a significant chance that i will have lost money 5 years from now?

are there any better options? what other funds/investments should i be looking at to diversify?

thanks for your help,

jon

[gull]

Emerging markets has been on fire for the last five years. Historically it's been a high return, high volatility asset class. Vanguard's Emerging Markets fund and ETF (VEIEX and VWO) are the best emerging markets funds, in my opinion.

There is a significant chance that they will be down 5 years from now. I would recommend diversifying with some US and developed foreign holdings, along with possibly REITs, commodity futures funds, bonds, and TIPS.

[spider]

Historically, emerging markets have been much more volatile than developed country stocks. Also, they have generally traded at a discount (in terms of PE), at least for the last 10 years or so, not sure beyond that but probably for longer than that. But now the PE is roughly the same, so the discount for volatility is gone.

Anyway, up or down from here is anyone's guess, but I think the vast majority of investors would tell you that 33% in emerging markets is pretty high or pretty high risk, however you want to put it. But if you are young and want to take some risks, maybe it's an acceptable one.

FWIW, I'm at about 20% emerging markets but I'm in the process of reducing to around 10% or 15%. But I'm also overweight developed international markets, so the combined internat'l exposure is part of why I'm feeling a little dizzy at 20%.

[captZEEbo]

[ QUOTE ]
Emerging markets has been on fire for the last five years. Historically it's been a high return, high volatility asset class. Vanguard's Emerging Markets fund and ETF (VEIEX and VWO) are the best emerging markets funds, in my opinion.

There is a significant chance that they will be down 5 years from now. I would recommend diversifying with some US and developed foreign holdings, along with possibly REITs, commodity futures funds, bonds, and TIPS.

[/ QUOTE ]What % approximately would you recommended in these? Also, any specific place to invest especially with regards to commodities futures and TIPS?