CHOOSING INVESTMENTS
2 or 3 ETF's
My wife and I have half our investment portfolio in VAS Vanguard Australian Shares Index ETF and half in VGS Vanguard MSCI Index International Shares ETF. We are wondering if we should now look to add a third ETF to our portfolio being US shares such as the VOO S&P 500 Vanguard ETF. We are wondering if this is a solid path forward, or should we go in a different direction. Thanks in advance :-)
Ronald Petterson.
6 June 2023
3 Comments
11 months ago
Hey Ronald.
Fair question. While there’s obviously no ‘correct’ or incorrect portfolio, here’s something to consider…
As you know VOO is a US only fund. Since VGS consists of about 70% US shares, it might not make sense to add an additional US focused fund. It would be doubling up for no real benefit.
If the goal is to increase the amount of US/global shares in the portfolio, another option is to increase the allocation to VGS. That would achieve basically the same thing without having to add an additional holding.
It’s also worth remembering that VOO is domiciled in the US which comes with possible estate tax issues for Australian investors. Most people prefer to stick with the funds which are operated from Australia, such as VGS, IVV, and so on.
Having said all this, there may be no need to add anything to the current portfolio. VAS and VGS has a very diverse spread of companies from all around the world and it’s a very simple and popular combination to have for good reason.
Hope that helps.
Dave
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ReplyAnthony Ingeri
INVESTOR
10 months ago
Agree with @Dave Gow. VOO would have a decent amount of overlap with VGS already… I also have VAS and VGS and believe I have a great amount of diversification.
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ReplyPuneet
INVESTOR
10 months ago
I am in a similar boat. Would adding IVV give any benefit to VAS and VGS portfolio?
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