Managed Funds Vanguard

Discussion in 'Shares & Funds' started by Redwing, 23rd Feb, 2017.

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  1. therealAusting

    therealAusting Well-Known Member

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    VDHG share price went almost vertical on the Google chart last few days .
    Anyone know why?
     
  2. pippen

    pippen Well-Known Member

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    Very relevant issues it seems! wondering if any posters have received any feedback from vanguard call centre staff on these matters or any other matters?!

    Cheers
     
  3. Nodrog

    Nodrog Well-Known Member

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    Give them a call and let us know:).
     
  4. Nodrog

    Nodrog Well-Known Member

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  5. Redwing

    Redwing Well-Known Member

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  6. Redwing

    Redwing Well-Known Member

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    Just chanced upon this on the Vanguard Sites TOOLS & CALCULATORS

    Compare products and costs

    Select and compare investment funds from Vanguard and other providers.
     
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  7. Tink

    Tink Well-Known Member

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    Can anyone explain why VAN0107AU (hedged international fund) has such high distributions relative to VAN0011AU (unhedged international shares fund).

    The 1 year distribution difference 19.78% vs 6.33%.

    The 3 year difference is 9.44% vs 2.99%. Fund total returns are relatively parallel with differences obviously being based on currency, but I don't understand why this distribution difference occurs.
     
  8. Nodrog

    Nodrog Well-Known Member

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    Welcome to the world of hedging. Erratic distributions as a result is why in part I dislike hedged Funds. See my previous post:
    Vanguard

    Tax inefficiency is another problem.

    You’ll get the currency adjusted total return but the split between capital and income will vary wildly.

    Hedging is an inexact science and difficult to explain especially by me with a sore head this time of night.

    The following article relate to bonds but it’ll give you some background. Light bedtime reading:).

    https://static.vgcontent.info/crp/i...standing-the-hedge-return.pdf?20170809|142945
     
  9. Nodrog

    Nodrog Well-Known Member

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    LISTED PROPERTY - Separate Allocation, yes or no?

    @Il Falco rather than get off track on the other thread I’ve been thinking more about VAP and whether it deserves to be a separate allocation in one’s portfolio. You mentioned low correlation with the main index etc. You do tend to overwork my geriatric brain at times truth be told:confused::).

    I remembered something about this in a Vanguard report and why they removed property from their diversified funds.

    This is an extract from the Report. There’s accompanying charts on page 16:
    https://static.vgcontent.info/crp/i...ersified-funds-whitepaper.pdf?20170510|101235

    Thoughts?
     
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  10. The Falcon

    The Falcon Well-Known Member

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    - not a prop investor so not overweight
    - yes it’s concentrated, as is the ownership of commercial property
    - drop gfc and correlation is much lover and that’s a very weird Index they have constructed on page 17 (half areit and half hedged Int’l reit)

    This is a new position for Vanguard, having previously held A-reit and Int’l reit in their diversified funds. I wouldn’t be surprised to have them add back at next asset allocation review....let’s see
     
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  11. Nodrog

    Nodrog Well-Known Member

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    Re Vanguard. Keep changing their mind. Yep don’t trust them. Never had, never will:). LICs, now they can be trusted:D.
     
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  12. The Falcon

    The Falcon Well-Known Member

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    It’s about whether or not you want to outsource your asset allocation decisions I guess. Me, no.

    Another note on VAP ; only raised this in other thread as was an all listed portfolio. In this sector you could make a strong case for unlisted single asset funds or direct investment imo.
     
  13. Nodrog

    Nodrog Well-Known Member

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    I must admit I don’t like the diversified product as discussed earlier in this thread especially given tax issues from rebalancing and changing asset allocation etc. Fine if for behavioural reasons that’s the only way an investor can cope with the market. But I agree that direct investment into separate funds is much preferred.

    I think I’m suffering from recency bias given what happened to AReits during the GFC. I owned SLF (along with STW) quite early on and when the GFC struck I started piling into SLF when it was down over 40%. Big mistake. From memory I think it got near 90% down at its worst? I should’ve listened to @SatayKing back then. He had always disliked them.

    72353CD9-0375-4071-BC0C-6B4159478E2F.jpeg

    That said it’s not a sector I trust. When badtimes are forgotten AReits have a bad habit of overleveraging when good times return. Then again they’re not alone there. Hence whatever the reason whether psychological and / or analytical it’s not a sector I would invest in ever again.
     
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  14. The Falcon

    The Falcon Well-Known Member

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    US investors had the same experience. Lots walked away from the asset class. Many coming back around now... Long term trend line looks good :p
     
  15. Nodrog

    Nodrog Well-Known Member

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    Never walked away from Shares which also copped a decent hiding during the GFC just AReits which I really didn’t do most of our buying till over 40% plus down:p:).

    To be honest the other main reason is they just ain’t as good for income as normal shares given their nature. For the same reasons that Thornhill and @SatayKing used to explain to me many years ago. Of course we’re different types of investors so in your case they’re likely to be a good fit. As a dividend investor less so for me.

    I do like your new portfolio suggestion introducing correlation factor on the other thread. Quite some thought has gone into it. For total return asset allocators it looks excellent.
     
  16. The Falcon

    The Falcon Well-Known Member

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    To be honest I know A-Reits aren’t ideal. As always there are many factors to consider ; tax, currency, cost, ease of management, volatility etc. It is what it is.

    The concept is striking a balance between the above mentioned factors. Somewhere between Taylor Larimore and Swedroe / Merriman, ha. One thing I’d also reconsider is to split out EM as a stand-alone rather than bundle into World ex US due to its different performance characteristics from the DM in that product. Question then rebalancing bands or time based? On it goes!
     
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  17. Nodrog

    Nodrog Well-Known Member

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    I like AU domicile but VGS would be much better split in two. But then Small Caps are missing. It’s really disappointing the product choice in Aus. You read the great stuff on Boglehead forum then try to apply it here taking into account our small concentrated market. Most solutions usually seem suboptimal. Frustrating at times.
     
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  18. therealAusting

    therealAusting Well-Known Member

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    Also an Australian domiciled ETF that tracks the US
    S and P 500 would be very nice. I would take one like that over VGS any day.
     
  19. Nodrog

    Nodrog Well-Known Member

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    The US part of VGS being mostly large Cap would be similar to S&P 500 or vice versa anyhow. So yes just a simple AU domiciled S&P 500 ETF would do the job.
     
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  20. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Use VGS and VGE in the right proportion to overweight emerging markets?

    Vanguard would definitely be better with an Australian domiciled version of VTS or S&P500.
     
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