Overlap

Hello! It’s great to see you’re exploring different investment options on Pearler and thinking about how they fit into your portfolio.

Firstly, regarding the overlap between VGS (Vanguard MSCI Index International Shares ETF) and IVV (iShares S&P 500 ETF), it’s true that there is some overlap. VGS includes a broad range of international stocks from developed markets, including the U.S., which means it inherently includes many of the same top U.S. companies found in the S&P 500 that IVV tracks. However, VGS also includes companies from other developed countries, providing broader international exposure.

The overlap isn’t necessarily a bad thing; it can reinforce your exposure to certain sectors or regions, particularly the U.S., which is a significant part of the global market. However, it’s essential to be mindful of how much overlap exists and whether it aligns with your desired asset allocation and risk tolerance.

As for adding VAS (Vanguard Australian Shares Index ETF) to your portfolio, this could be a good move if you’re looking to increase your exposure to the Australian market. VAS tracks the ASX 300, covering a broad spectrum of Australian companies, which diversifies your investment away from the heavy U.S. focus in IVV and the international scope of VGS. This can provide a balance of exposure across different geographic regions and economic sectors.

When considering adding any ETF, think about how it fits with your overall investment strategy, your risk tolerance, and your investment horizon, especially considering this is an investment for your toddler’s future.

Pearler’s platform tools, like the «compare» feature, are designed to help you make informed decisions by providing insights into how different ETFs overlap or differ. This can be particularly useful in managing diversification and understanding the weight of each investment in your portfolio.

Remember, it’s always good to review your investments periodically to ensure they continue to

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