Vanguard Life Strategy

grey_gym_sock

Linton wrote: »

The China allocation is notable by its continued omission in any reasonable % (Less than 2.3%).

this will be partly down to chinese 'A' shares being excluded because they are not fully accessible to foreign shareholders. their accessibility is gradually being increased, and i think index providers are moving towards including them in indexes, but presumably FTSE haven't got there yet.

perhaps also because chinese 'N' shares (quoted in the US, with returns supposedly linked to a separate operating company in china, and incorporated in some third country), have very contrived legal structures, and may fail to qualify for inclusion in indices for any 1 country, and hence also be omitted from global indices.

there are certainly interesting issues when index providers have to make decisions about what to include, and big changes may be required in the composition of an index.

A_T

MSCI say they will include China's mainland domestic shares in it's EM index from next year.

bigadaj

A_T wrote: »

MSCI say they will include China's mainland domestic shares in it's EM index from next year.

Is there something wrong with this thread?

Alexland

No it's that people keep voting and bumping it to the top.

frenchplonka

just a quick question I have recently put in a order to monthly drip 150 into a LVS80 im in my mid 30's which would be better the 80 or a better option

Alexland

Depends on your appetite for volatility in search of potentially greater rewards. I assume this is a long term investment 10 years+

If you are going to be spooked if you investment drops 45% and takes a few years to recover during which time you sell out at a loss (as you fear you might loose everything or regret you decision to buy the fund) then use a fund with less equity exposure as VLS80 would be a very bad choice for you.

If you are saving for retirement and have the perspective to understand that after a big drop things are highly likely to get better (and while things are low you remain happy as you are buying more fund units with your monthly contribution and maybe even try to add a lump sum while units are cheap) then VLS80 might be good for you.

Alex

bowlhead99

frenchplonka wrote: »

just a quick question I have recently put in a order to monthly drip 150 into a LVS80 im in my mid 30's which would be better the 80 or a better option

There were 1555 posts on this thread before yours. Did you read them?

If you did, you'd find there is no short answer to "what is the best VLS fund for my needs, note I'm not going to tell you what my needs actually are, or when I'll went to spend the proceeds, just know that I'm in mid 30s and have a guess thanks."

IMHO if you're not going to be spending the money for several decades and are not going to panic and sell it when it temporarily drops to 50% off its high - the VLS80 will be fine. For other circumstances you may prefer another solution.

You could search this thread for other comments I've made in the past, which you might find more useful - there are 60+ of my posts as the thread is several years old after all.

frenchplonka

Ignore my question i forgot to paste in the other fund mentioned

frenchplonka

My question SHOULD have been given a 20+ time frame with a lad who doesnt really worry about a fund tasnking which in people opinion should provide a better return over the long term VLS OR Vanguard FTSE Global All Cap Index Fund and what is the difference between the VLS and Vanguard FTSE Global All Cap Index Fund

bowlhead99

frenchplonka wrote: »

My question SHOULD have been given a 20+ time frame with a lad who doesnt really worry about a fund tasnking which in people opinion should provide a better return over the long term VLS OR Vanguard FTSE Global All Cap Index Fund and what is the difference between the VLS and Vanguard FTSE Global All Cap Index Fund

The VLS80 fund you mentioned a few posts ago is 80% equities and the Vanguard Global All Cap Index Fund is 100% equities (and also incorporates some equities in smaller companies).

Over a long enough timescale you would expect the All Cap Index Fund to have the potential to generate a greater total return, though it has a greater proportion of overseas equities, smaller companies and that combined with the fact that it is fully equity based with no bonds will mean it is likely to be more volatile - perhaps quite a bit more.