VGS is 70% weighted to the US market and therefore they are closely correlated. So to outperform the US market tracking funds, the non-US components of VGS have to significantly outperform the S&P 500. And since 1980 there have only been 3 years where the MSCI World ex-Australia Net Total Return Index (the index tracked by VGS) has outperformed the S&P/ASX All Ordinaries Accumulation Index (essentially VAS) or the S&P 500 Total Return Index (IVV ). So over the last 40 years you would have been better off in VAS and IVV or VTS than in VAS and VGS.
IVV vs VGS, vgs is having higher management fee. Also using portfolio visualizier, vgs always underperformed over the decades in comparison to ivv. Also vgs has around 74%, US stocks. so risk profile is somewhat Similar to ivv, yet paying multiple times in management fee for an underperformance. diversification or foolishness, I dont understand 😢😅
Just a note that IVV has just had a 15:1 stock split, bringing the price down to $39. This makes it a very handy price for Aussies wanting in on the S&P 500 with a low expense ratio, and a very good alternative to VGS.
I have both VGS, IVV & IHVV (plus VAS). My main question is weather i push more for IVV or VGS? At the moment the US is the star but in 20+ years time other global businesses might lead the way and VGS covers this risk. Would you go VGS, IVV or both? I still plan on picking up IHVV when the AUD is low.
@@Johnno1979 I can't give you advice on that, sorry. But, I'll just point out that most of the companies in the S&P 500 are actually international companies... operating and manufacturing in many countries, and effectively invest in those countries. So that builds in a certain level of diversity. For my own *growth* portfolio, I wouldn't have both VGS and IVV, because of overlap. Instead, I have just VAS and IVV. Cheers.
VGS/VAS is a great combo. I also like to add a small amount of VGE at cap weight as a diversifier. I don't hedge as I own property and have a lot of assets tied up in AUD already. Allocation is 70/20/10 (roughly market cap weightings with a slight home bias tilt.) My focus is capital growth over dividends.
Hi Sanjee! Great video! The VAS + VGS combo is very complementary as it allows us to capture both Aussie + global stock market returns. I have a VAS + IVV portfolio but will add VGS soon.
I put a fair amount into VGS and VAS 16 months ago and I still haven't broken even. Very disappointing start. Decent dividends have made up for it but in the past 24 mo these shares have been my worst.
16mo ago was about the top of the market unfortunately. But if you’ve been DCAing throughout the bear market, you should see the benefit of that in time. I’m in exactly the same boat…
For some reason when I get emails from CMC via my Gmail account they are flagged as Spam.. Calls to CMC can't seem to resolve this issue. Do you have any suggestions?
can I ask with VAS shares being around $95 each, how many should you buy to start off? a single girl wage cant buy much LOL and is having say 6 shares worth doing? :( confused at starting out Ive got $1500 to start with and wanted to buy VAS and VGS
Weekly is good. Rather than a few times a year. As the value fluctuates, you tend to be average out, which is better than buying high or low in the grand scheme of things.
