I am big on international diversification. My Roth IRA is 100% VT. But my 401k’s international offerings have crappy expense ratios. The international stock fund ER is .5%, and the emerging markets ER is .74%.
As a result I have had 100% of my 401k holdings in an S&P 500 fund with an ER of .05% since I started contributing.
But as the years of max contributions pile up, my 401k has grown a lot larger than my Roth IRA, and I feel like I am overweight in US. I’ve been toying with moving the 401k to a 70/30 SP500 / international allocation but don’t want to fiddle.
Any opinions on whether the international diversification is worth the increased expense ratio?
Thanks.