Author Topic: Trying to learn more about how VTWAX/VT updates  (Read 885 times)

abstractartifact

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Trying to learn more about how VTWAX/VT updates
« on: August 16, 2020, 04:56:29 PM »
I want to be sure I'm correctly understanding how VT operates/updates. I know it's based on the FTSE Global All-Cap Index. If, for example, the US market entered a prolonged slump and African/Asian markets continued to grow, would VT reflect this reality? How often are these percentages updated?

My portfolio already tilts heavily international for a US based investor at ~40%. Getting there with target date fund in my IRA and VT/VTI/VXUS in taxable accounts.

I couldn't find any relevant info on the Vanguard or FTSE sites. Any help would be appreciated.

Thanks.
« Last Edit: August 16, 2020, 06:34:17 PM by abstractartifact »

MustacheAndaHalf

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Re: Trying to learn more about how VTWAX/VT updates
« Reply #1 on: August 16, 2020, 11:21:59 PM »
If you look on Vanguard Total World ETF (VT)'s portfolio page, you'll see each region listed as a percentage (last updated at the end of July).
https://investor.vanguard.com/etf/profile/portfolio/vt

You might want to learn about "market cap weight", which will clear up what happens when some stocks rise while others fall.  The short answer is VT does nothing - the new market values are the new weights.

It looks like the percentages are updated monthly, but VT itself certainly buys stocks more often.  They won't tell anyone when that happens - that information would let someone front run Vanguard, and wait for Vanguard's buying pressure to lift the price of a stock.  So you'll only see updates after the fact.

abstractartifact

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Re: Trying to learn more about how VTWAX/VT updates
« Reply #2 on: August 17, 2020, 11:50:33 AM »
Thanks for your reply. So if I'm understanding correctly, if a particular geography expanded its share of the publicly-traded global economy, it's share prices and index prices would rise, causing them to comprise a larger % of VT?