You could do some deep dive research and work this out manually if you had the time or the energy, but I personally wouldn't bother with that – unless you're a real stats nerd that is. The LifeStrategy 100 is a ‘fund of funds.’ In other words, it places its assets into a variety of Vanguard passive funds, each of which will track a different index. A home bias is simply when an investor overweights their portfolio with investments into the country in which they live that significantly deviates from global market cap. on LifeStrategy 100 vs FTSE Global All Cap – FIGHT! The past performance rates of return of the fund and benchmark appear to track quiet closely on their bar chart. The Fund gains exposure to shares by investing more than 90% of its assets in Vanguard passive funds that track an index (“Associated Schemes”). So, a long by-product should be a better quality of life for you (though, you could say that globalisation has reduced this somewhat. Thanks. Of course this is a valid investing strategy, but what is your reason for this? Over the many years you are invested you therefore hope to see a reversion to the mean, so that your overall return averages out to a postive figure. You’ll have to vaguely pay attention, to make sure the asset allocation doesn’t stray too far off course. When I say bonds, I specifically have this in mind, from Vanguard – https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F000003VEC. How much do you plan to invest? In other words, Vanguard think it is better to hold a hold a diversified portfolio that accurately reflects the global market cap. If you’d like to discuss any of this in more detail and perhaps share some personal numbers (and do not want the rest of the world reading them!) When deciding which of the two to invest in a few years ago, I did some research and made some notes to weigh up my decision. Thank you very much for your well detailed reply. The exact composition of the fund is available on Vanguard’s website. For this reason I believe we are comparing apples to kangaroos and it makes the fund hard to analyse using this metric outside of Vanguard's bubble. I have to confess, I did contribute to both the LS100 and the FTSE GAC for a short time, before deciding to contribute solely to the GAC. By going for a mix of LS60 and GAC, you’re taking away that advantage of simplicity. Find basic information about the Vanguard Lifestrategy 100% Equity Fund A Acc mutual fund such as total assets, risk rating, Min. Personally, if you’re tempted to do that, I’d just go with the GAC and a global bond fund, in the ratio that suits your risk appetite. As always, do your own research. Digging slightly deeper on this, I believe this may be due to Vanguard's own take on turnover rate providing some "funny accounting" here. Of course, I wouldn’t want to bet against the US in the short term either. VSCGX possesses a Zacks Mutual Fund Rank of … Thanks! Heed Lars Kroijer in this: https://www.kroijer.com/ If you read my ISA article you will see I am a strong advocate of the efficient market hypothesis and I personally believe that doing anything that the market is not is a bad call. Many thanks… – Mr Fox. If you have a different goal for each pot of money, then that would make sense, for example. I hope it was useful to you in some way. Glad you found it useful. The fund seeks to track the performance of the FTSE Global All Cap Index. Contrast this to the actual market cap weight of the UK at around 5.5% of the global economy and we can see there is a home bias here. ( Log Out /  You may have seen I have an article detailing what I hold in my personal S&S ISA and the reasons for holding this. star-filled star-filled star-filled. Change ), You are commenting using your Google account. You probably hope to see a long term return of 4-9%, or something around that. Be it found, given or reimbursed for, if we didn’t pay for it in the end up, it will feature here. Great points and plenty of food for thought. Rather paradoxically this falls under a similarity and a difference at the same time. I suspect, however, that in the long run both funds would perform fairly equally. As well as taking advantage of the bond diversification (10% into my total portfolio) I was also offsetting the FTSE All Cap with the LS80 extreme weighting towards the UK equity sector. I just replied to your comment on Reddit, but I’ll copy and paste here for completeness: Personally, I think the strength of the LifeStrategy series of funds is their simplicity. Hello Mr Fox The FTSE 100 make their money globally not solely in the UK. I agree, and as I said in the post, if you want to include bonds then the LifStrategy80 or LS60 are excellent choices due to how easy and stress free they are. £10 per £100k is such a tiny amount, even over multiple compounded years. Link here for you, it is also pinned to the side bar: https://thefifox.wordpress.com/2019/03/28/our-stocks-and-shares-isa-portfolio-explained-what-do-we-invest-in-and-why/. 3. John. It does what it says in the tin and is one of the cheapest global funds out there with small cap exposure and a very acceptable tracking error. One of the most common questions I find myself addressing for people is the one we will focus on today. Stoicism: Lessons for Financial Independence, The Full English Accompaniment – How are we all managing? The Vanguard LifeStrategy® 100 (LS100) and the FTSE Global All Cap Index Fund (FTSE All Cap) appear to be very similar on first glance but fundamental differences exist between the two. For example, about 25% of LS100 is invested in the UK (mainly in the FTSE 100, but some FTSE 250 is sprinkled in too). As a rule of thumb you should expect turnover rates to be between 0% and 100% and an index fund should usually fall below 30%. For this reason, hedging against currency for long term investments (be this a hedge through a home bias or a hedge by trading foreign assets) is pretty moot! Some of it may seem rather obvious, but I do like to be methodical in my analysis. Now without getting far too technical for a comment, here are a few thoughts. I do think you are correct in saying you’re over thinking it. You do however accept that this will not be consistent year on year – some years will be +25% and others -32% (to pluck some random figures!). Currently, LS100 has an OCF of 0.22% and FTSE All Cap has an OCF of 0.23%, meaning it costs 0.01% more in fees to own FTSE All Cap over LS100. A version with no bonds is not offered to US investors, perhaps suggesting that those who want that are better off not using the LS series at all… – Mr Fox. As you note, the fund is fairly new so we do not have much historical data to work with, but we have enough to generate some potentially useful data. VMOM is a momentum tracking ETF and currently boats a turnover rate of 192%! Unless you step in every few months, your asset allocation could become increasingly out of line with your original intentions as prices fluctuate. Don’t forget, I’m not a financial adviser or a professional. If the alpha generated is high enough, the juice is worth the squeeze so to speak. Global Large-Cap Blend Equity: IMA sector: Global: Launch date: 23 Jun 2011: Price currency: GBP: Domicile: United Kingdom: ISIN: GB00B545NX97: Manager & start date: Not Disclosed. Essentially, most investors will feel an affinity for their home market and will want to invest in what they know. I opened up a Lifestrategy 100%, putting in £250/month from April (had been researching investing for a while) Was just wondering what percentage of investment I should be putting into both. Definitely below your <2% threshold by a country mile. 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