Busy Day

Today we added Vanguard Europe Pacific ETF (VEA) at $38.04, iShares MSCI Australia Index (EWA) at $26.02, and Vanguard Materials ETF (VAW) at $84.15 to the portfolio.  I have a penchant for Vanguard, all three are trending up, and Benny won't allow me to break even in cash.  Other rationale--

VEA:  I needed a core non US Developed Equity holding.   By core I mean that I will not sell ALL the shares due to a price decline.  Vanguard says it's a tax efficient fund which is important as this one is held in a taxable account.  Consisting of 946 stocks, yielding 2.37%, and sporting a PE of 12, this is a big neanderthal.  Just what I was looking for.

EWA:  The story is Australia has what the emerging markets need and I buy the story.  Still, there are  other realities.  The government has proposed a new 40% tax on mining profits from 2012.  The miners are pushing back hard so maybe compromise will win the day.  I'm also not enamored with the large number of financial holdings.  This one's on a short ($24.07) leash-- a bump up and get out may be all we can expect.

VAW:  Holds stocks of companies that extract or process raw materials which is a great Fiat Fantasy fit.  This one has been going up pretty much non-stop since last summer and may be over extended here.  Let's hope the next down turn will be manageable as I'd like to hang on to VAW.