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Vanguard Lifestrategy - Global or home bias

Does anyone have a viewpoint on which of these VLS option they prefer, and why?

Comments

  • dunstonh
    dunstonh Posts: 121,772 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker

    From around 2012 to 2024, global was better. 2025 onwards, home bias has been better.

    If you believe the historical cycle between the US and global (ex-US) markets has shifted again, you should use home bias. If you feel the last year of US underperformance is just a short-term bli[ and will revert, then you go global.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • El_Torro
    El_Torro Posts: 2,331 Forumite
    Part of the Furniture 1,000 Posts Name Dropper

    My view is that a certain amount of home bias is fine. My pension is about 10% UK. I achieve this by having various multi asset funds, including VLS.

  • aroominyork
    aroominyork Posts: 4,099 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 7 February at 7:19PM

    I've been underweight US for years; finally it might be starting to pay off. I'm about 15% UK, mostly in an index income fund. If I wasn't chasing yield I would be a bit less UK. I'm not far away from 40% US, 30% UK/Europe, 30% Japan/AP/EM. (Apols Mr Carney - a couple % of Canada is in there somewhere.)

  • I am seriously underweight US at about 26%. UK/EU are 34%, Asia/EM are 30% and Japan is 10%

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