An ideal VAS and VGS combination portfolio

Join me on other social channels:

Timestamps:
0:00 - Intro
1:03 - What is VAS and VGS?
1:30 - What does the internet say?
2:02 - Plotting risk and return
2:42 - The graph
4:50 - Minimum risk combination
5:27 - Efficient combos
6:17 - What does this mean for you?
6:57 - Portfolio rebalancing
8:43 - Questions and requests

My setup (Australian Amazon Affiliate links):

Link to Efficient Frontier modelling:

Useful links:

Disclaimer:
The information provided in this video is general in nature only and does not constitute personal financial advice. You should also consider seeking the advice of an investment advisor who holds an Australian financial services (AFS) licence or is a representative of an AFS licensee. Be sure to work with someone who understands your investment objectives and tolerance for risk. Your investment advisor should understand these products, be able to explain whether or how they fit with your objectives, and be willing to monitor your investment alongside you. There are some Amazon Affiliate links above - if you purchase from there, at no additional cost to you, I will earn a small commission for each sale.

[dwaynlucas]

60% International + 40% Domestic (ASX) is very similar to most EFT provider/ super fund High growth model portfolios minus the cash/bond/Reit/gold (10 to 15% allocated to International).

Most of the investment articles I've read suggest being invested for the long term sticking to a standard portfolio allocation beats investors always tweaking their portfolio to find the perfect allocations.

[youtuber]

love your videos mate. For me personally, the calm delivery makes a huge difference over others who, although still helpful, present themselves as more of a loud tv personality. By contrast that can be a bit jarring when us newbies are trying to pay attention to the content. Anyways, keep it up!

[Jamie-jukk]

love this! thanks Sanjee. Would love another video on how other ETFs could fit in like VAE, etc etc

[eggs-benny]

VTS / VAS combination would be useful. Thanks for making these videos

[petejames]

since VAS is only aussie stocks and the aussie market is like 2% of the global wealth, i would put 70% of my money in VGS and 30% VAS at most, but if i was looking at dividend income the most, i would put 70% VAS and 30% VGS, if you want more INCOME buy more VAS is you want more GROWTH and global exposure buy more VGS.

[jasonzhang]

Hey Sanjee, love your videos man they're really helpful. Could you consider doing a video exploring what to compliment VDHG as a core? Perhaps entertaining options for people that want to diversify into the Asian market or perhaps wanting to overweight US equities. Cheers bro

[markwilson]

VDHG would be interesting to analyse, would love to hear your thoughts.

[Ferrat]

Interesting, I had planned to do an initial 40-40-20 split with VAS, VGS and VAP, or at least 33-33-33 hadn't quite decided, we are only starting, and was going to have 50% in ETF's and then long term do 50% into single shares that I have faith in.

[todd]

this was massively helpful. thank you for the video Sanjee

[jing]

What about a video on a combo of VDHG, VAS and VGS?

[ggbogo]

Outside of super: 70/30 - VGS/VAS

Inside of super: 58/28/7/7 - Index (15% International is hedged)

I own $640k worth of property

[Johnno]

Thanks for a great video. Just getting into ETF's for super and general savings and these really help.

[davidg]

According to Passive Investing Australia website having more than 30% allocation to Australian shares creates concentration risk. She gives an example that in 73/74 the UK sharemarket fell 73% ( while US market, by comparison, fell 45% in same period.) The UK sharemarket recovered in 10 years but it would be a big problem for a retired person if they had too much in one country and it lost 73%. This story also illustrates the importance of rebalancing.

[mandar]

I understand that the vas is pegged lower than vgs purely on total returns but can we do an analysis based off franking credits? Vas (bring aus) comes with franking credits while vgs doesn’t. This considerably reduces the tax (even dividend income is taxed if in drp). I think this adds another 2% to return. I am suggesting not to have 100% Vas but the video ignores this so thought I’ll highlight it

[heaketh]

If you compare VDHG to your graph timestamp [4:50 - 5.25] it works out very similar with approx. 36% VAS | 66% other Vanguard products incl VGS/VGAD aprox. 43% / 13% Bond/VAE.

[Burntowerx]

Great graph to highlight the return/stnd dev.

[jettgrrlaust]

Hi Sanjee, thanks for explaining everything in such an easy to understand way and making that jump into the world of investing less overwhelming! Just set up a joint investor fund with my partner who is American (now living in Australia) We want to invest in both VGS and VAS but are reluctant as we aren't sure what to do about the W-8BEN form? What usually happens if one person is a US citizen and we have a joint account? Hoping you might be able to help with an answer!

[michaelpapp]

Pairing up VAS with VSO and VGS with VISM/VGE for a larger coverage of the world

[paulsteven]

Was wondering, something that never seems to be mentioned is your overall exposure of your income and assets.
Should be looking at your total assets, not just your investment portfolio. For the "average" person -
Wages & property - 100% AUS
Super & managed fund likely 60-70% AUS
Shares (likely) 100% AUS
So 100% VGS would reduce your overall risk to the Aus market.

[Carnezu]

I have just started my investing journey with VAS and VGS as my foundation ETF investments, so I guess you could say this video is definitely for me :)