ETF Vanguard MSCI Index International Shares ETF (VGS)

Discussion in 'Shares & Funds' started by Snowball, 11th Dec, 2018.

Join Australia's most dynamic and respected property investment community
  1. Snowball

    Snowball Well-Known Member

    Joined:
    28th Dec, 2016
    Posts:
    843
    Location:
    Perth
    Anyone know how Vanguard has been able to generate returns more than 30 bps higher than the international index for VGS since 2014 and for the managed fund version since 1997?

    I thought they were only just about to start securities lending to earn extra income so I don’t think it’s that?

    Pretty impressive, essentially means we already have access to fee-free indexing in Australia :D

    Calling on the market mastermind group here @The Falcon @Nodrog @dunno etc

    https://api.vanguard.com/rs/gre/gls/stable/documents/7707/au
    https://api.vanguard.com/rs/gre/gls/stable/documents/8261/au
     
  2. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,376
    Location:
    Buderim
    I recall an article ages ago providing insight into this but can’t remember the detail and can’t locate the article. Best to email them. They’re usually pretty good at getting back to you.

    I must admit I don’t pay much attention to this level of detail anymore.
     
    Snowball likes this.
  3. Invest_noob

    Invest_noob Well-Known Member

    Joined:
    21st Mar, 2017
    Posts:
    299
    Location:
    Sydney
    VGS selling at a discount? Anyone buying?

    Also, question to the veterans who suggest not worrying about prices, would you regret it if you had bought on the 5th of October?

    Screen Shot 2018-12-20 at 11.18.50 am.png
     
  4. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,376
    Location:
    Buderim
    No discount, just the ETF tracking the index.

    Topped up VGS again yesterday @ $64.41. It’s obvious I need to improve my timing skill as I missed the low of $64.40? from memory:). Maybe I need to attend a trading course:confused:? A lot of cash awaiting a home but at this stage of our journey I have the luxury of being able to be patient.

    There’s no room for regret with investing. If you’re a long term investor in 20 years time you won’t give a rats what you paid. If you’re buying regularly it averages out over time. Buy then don’t look back, it’s done, you must learn to put it out of your head. Otherwise investing in stocks will become a source of stress when there’s no need for it given it’s a long term endeavour.
     
    Absent, Ynot, truong and 7 others like this.
  5. Zenith Chaos

    Zenith Chaos Well-Known Member

    Joined:
    10th Jul, 2015
    Posts:
    1,673
    Location:
    Sydney
    If you regret that then your investing life will be full of regrets. If you buy at equal frequency you will get some good buys and some bad buys. Do you unregret the good buys?

    As @truong once said. Accumulate shares in number not price.
     
    Observer, truong, sharon and 5 others like this.
  6. Speede

    Speede Well-Known Member

    Joined:
    26th Sep, 2015
    Posts:
    786
    Location:
    A wannabe Mexican
    Good buying in a few months...down down down prices are down....
     
    pippen likes this.
  7. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,376
    Location:
    Buderim
    Just wish VGS would be more cooperative as I want more global equity exposure. Bloody Aussie Dollar being a risk currency has a tendency to offset some of the global equity falls:(.

    Need China to embark on a massive stimulus program which might kick off a boom in the mining sector. Well I can always dream:rolleyes:.

    If one believes in reversion to the mean maybe the next decade will be ASX’s turn to party whilst US in particular has a crappy run. Then I might get better buying opportunity in the global equity index ETF.
     
    sharon and Snowball like this.
  8. Zenith Chaos

    Zenith Chaos Well-Known Member

    Joined:
    10th Jul, 2015
    Posts:
    1,673
    Location:
    Sydney
    Doesn't VGAD solve this problem?
     
  9. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,376
    Location:
    Buderim
    No, I don’t want VGAD given I’m holding global equities mostly for protection against home Country risk, a critical piece of insurance in my view. Hedging removes that protection. Hedging also messes terribly with reliability / consistency of distributions. I’ve seen no distribution for nearly two years in the past with Vanguard’s Hedged Fund.

    Of course one could try to switch between hedged and unhedged but trying to time currencies is even harder than trying to time sharemarkets.
     
    Ynot, Anne11, Redwing and 1 other person like this.
  10. oddshapes

    oddshapes Well-Known Member

    Joined:
    15th Oct, 2018
    Posts:
    101
    Location:
    Australia
    Interesting point and something for us learners to keep in mind. I'm just doing a bit of research into different ETF's and noticed VGAD didn't pay a distribution in Jan '19 due to the decline in the aussie dollar.
     
  11. Redwing

    Redwing Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    7,431
    Location:
    WA
    Just looking back to this date in hindsight upload_2024-2-4_19-1-38.png
     
    number 5, Waterboy and Gockie like this.
  12. Waterboy

    Waterboy Well-Known Member

    Joined:
    29th Aug, 2015
    Posts:
    2,802
    Location:
    Denial is Not a River in Egypt
    that's why I just invest whenever I have extra funds, without timing the market.

    I have a No Dilly-Dallying Policy.