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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Mikaelus on May 25, 2015, 05:55:05 PM

Title: Any other Vanguard funds worth investing in?
Post by: Mikaelus on May 25, 2015, 05:55:05 PM

So following MMM's lead I've put pretty much all my 'stash in a Vangauard ETF. Since I live in Australia I've bought the Vanguard Australian Shares Index ETF, but I'm wondering if it's worth looking at any of the other ones.

Are any of the other Vanguard ETFs worth considering?

I like the sound of the Vanguard Australian Shares High Yield ETF cos I like the idea of getting ever increasing dividends...

https://www.vanguardinvestments.com.au/retail/ret/investments/etfs.jsp#performancetab

Or should I think about getting some American/English Vanguard ETFs just in case the Australian economy tanks or something?

Thoughts?

Title: Re: Any other Vanguard funds worth investing in?
Post by: thedayisbrave on May 25, 2015, 06:00:57 PM

What does your AA say?

Geographical diversification is never a bad idea.  While many well-known investment professionals recommend a home country bias (overweighting the country in whose currency you earn/spend), having all my eggs in one currency basket would make me a little nervous.

Title: Re: Any other Vanguard funds worth investing in?
Post by: seattlecyclone on May 25, 2015, 06:59:39 PM

Yes, international diversification is important. While the US economy is large enough that we Americans can kind of get away with investing only in our own country, I'm not so sure you have the same luxury. Buy some US/EU/Asian index funds in addition to your Australian investments.

Title: Re: Any other Vanguard funds worth investing in?
Post by: forummm on May 25, 2015, 07:58:20 PM

Yes, I recommend buying the global market. If you have 50% US and 50% non-US, that's about the global market cap. You may decide to overweight AUS compared to the rest of the world for currency reasons.

Title: Re: Any other Vanguard funds worth investing in?
Post by: vagon on May 25, 2015, 08:54:22 PM

How often do you DCA?
May be worth going the low cost index fund from Vanguard instead of ETFs.

Title: Re: Any other Vanguard funds worth investing in?
Post by: Gumbo1978 on May 26, 2015, 06:17:13 AM

I had a recent meeting with a Vanguard Advisor.  Turned me on to the tool on their website under "My Accounts - Portfolio Watch".  Basically compares your holdings to what they recommend.  Easy visuals.

I wanted a simple plan, so I have 4 funds.

Stock Allocation:
60% - Total Stock Market Fund
40% - Total International Stock Fund

Bond Allocation:
70% - US Total Bond Market
30% - International Total Bond Market