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 😢😅
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.
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.
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.
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
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?
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.
omg Sanjeeeeeeeeeee its Rose here I can't believe you are now on RUclips!!! so happy to see you doing well!!!!
Thanks Rosie!
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.
Totally agree. After watching this video and reading your comment, I will stick with IVV and VAS.
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 😢😅
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.
Hay man I love your work
Thanks for help
Can you please make video on emerging markets etf
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.
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.
Great video mate! Thanks for the info!
Always some great content mate.
Thank you.
Amazing content as always! Thanks, Sanjee.
How about a VGS vs VTS comparison?
Hope Vanguard doesn't go down the ESG route with VAS/VGS.
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
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…
7 years 👍🏽
don't give up and keep investing. come back in another 10years
Please could you help me getting a answer if I invest in VGS as a non resident do I pay taxes on dividends
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?
Good to you again, you have been quiet lately 😊
Funny, when I read your thumbnail too quickly I thought the title was 'LAS VEGAS', heheh.. ;-)
@Whatapp-me- Why on earth would I do that?
Hi Sanjee what is your take on ivv
Video coming soon!
Which website or platform should we use to invest in ETFs?
Well the video is for Vanguard
VAS & VGS Both are king & queen of the ASX market 👍👍👍👍
How often you recommend to invest in these ETF?
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.
Just want to make money
Who care about how they do it
Goodluck to you