Vilma buys SCHE 20.77: Despite putting the core in a large domestic holding, it is also important to get some bond exposure within the portfolio unless the investor intends to be extremely aggressive.

SCHB and SCHX would work very well for it, or there are numerous options from Vanguard that would also be very viable. If the recent fall in equity markets punishes emerging markets harder than the rest of them, it will make me look much more favorably on incorporating SCHE into the mix. I view SCHF and SCHC as being the more desirable options from my risk tolerance perspective, but I will continue to contemplate a position in SCHE. Since SCHE qualifies for free trading in Schwab accounts, the rebalancing plan wouldn't be too bad. The only way I'm interested in doing emerging markets after those experiences is using low cost indexes and going in with a rebalancing plan in place.


Kellee:
On the other hand, regular rebalancing can be used to mitigate some of the effects of the volatility.

Vernetta:
On one hand, I want to reduce volatility as much as possible.

Sandra:
However, it has also shown materially more volatility than SCHF and SCHC.

Leatha:
Emerging markets are volatile enough on their own without being required to hold more smaller companies.

Arlene:
I love that battle because it is giving me options for very low cost ETF investing.

Harriett:
I see the very low expense ratios on some Schwab funds as reflecting an intense battle with Vanguard to be the low cost leader in the industry.

Deann:
The best way to handle the volatility is to use a limited exposure and to make a plan for rebalancing before buying the first share.

Angela:
This is because, of the three major U.S. indices (the Dow, the S & P 500 and the NASDAQ), the NASDAQ outperforms the others over time.

Eden:
And you should buy either the Powershares QQQ (a.k.a. the Q's) that tracks the tech-laden NASDAQ, or a stock that is a decent proxy for the NASDAQ, such as a stable, dividend-paying, but still growth-oriented stock like Apple.

Katherine:
So, you would want to put a fair amount into the Russell 2000 Small Cap Index (IWM) because small caps tend to have a higher risk profile, and, as a result, higher rates of return over the long term.

Schwab Emrg Mkts Equity ETF (AMEX:SCHE)
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