Is Vanguard Portfolio tool accurate?

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ImmigrantSaver
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Is Vanguard Portfolio tool accurate?

Post by ImmigrantSaver » Thu Mar 30, 2017 10:08 pm

Hi,

I am trying to analyze my portfolio allocation using both Vanguard Portfolio tool and the Personal Capital and I am getting inconsistent results. For example Vanguard shows a much smaller mid-cap allocation than PC. I was just wondering which is producing more accurate results. Anyone here used both programs?

I.S.

livesoft
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Re: Is Vanguard Portfolio tool accurate?

Post by livesoft » Fri Mar 31, 2017 2:26 am

Neither is accurate for everything.

See this discussion: viewtopic.php?t=150267
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Rainmaker41
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Re: Is Vanguard Portfolio tool accurate?

Post by Rainmaker41 » Fri Mar 31, 2017 6:57 am

I noticed this as well. When aggregating my Vanguard and Principal 403b accounts, different portfolio assessment tools give different breakdowns of what asset classes I apparently hold. Oh well.

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ImmigrantSaver
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Re: Is Vanguard Portfolio tool accurate?

Post by ImmigrantSaver » Fri Mar 31, 2017 11:20 am

livesoft wrote:Neither is accurate for everything.

See this discussion: viewtopic.php?t=150267
Thank you! Will check out the thread.

Specifically in my case, I noticed VG shows that all my midcap holdings are coming from a (very small) VTSAX position. My main allocation is VG S&P500 (VIIIX) and SCV (VSIAX) (87/13%) - both of which I understand contain a decent amount of midcap. Hense was my confusion..

Bob Alou
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Re: Is Vanguard Portfolio tool accurate?

Post by Bob Alou » Fri Mar 31, 2017 12:24 pm

You may wish to take another look at the fund data for both VIIIX and VSIAX.

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ImmigrantSaver
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Re: Is Vanguard Portfolio tool accurate?

Post by ImmigrantSaver » Fri Mar 31, 2017 1:41 pm

Bob Alou wrote:You may wish to take another look at the fund data for both VIIIX and VSIAX.
I am not saying those are mid cap funds. But my undestanding thay vsiax does contain midcap since many people on this forum pointed out that it's not as "small".. However VG tool shows that none of my midcap allocation comes from it, while PC shows some midcap coming from both VSIAX and VIIIX. Just trying to understand which program to use? Are there any other ways to screen your portfolio for asset allocation rather than funds allocation?

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SpringMan
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Re: Is Vanguard Portfolio tool accurate?

Post by SpringMan » Fri Mar 31, 2017 1:48 pm

One should also consider that Vanguard and Morningstar have different definitions of small, mid, and large caps.
Best Wishes, SpringMan

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ImmigrantSaver
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Re: Is Vanguard Portfolio tool accurate?

Post by ImmigrantSaver » Fri Mar 31, 2017 2:25 pm

SpringMan wrote:One should also consider that Vanguard and Morningstar have different definitions of small, mid, and large caps.
I didn't know that :oops:

So what is everyone using? Is there a concensus on the best portfolio tool?

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ruralavalon
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Re: Is Vanguard Portfolio tool accurate?

Post by ruralavalon » Fri Mar 31, 2017 4:35 pm

ImmigrantSaver wrote:
livesoft wrote:Neither is accurate for everything.

See this discussion: viewtopic.php?t=150267
Thank you! Will check out the thread.

Specifically in my case, I noticed VG shows that all my midcap holdings are coming from a (very small) VTSAX position. My main allocation is VG S&P500 (VIIIX) and SCV (VSIAX) (87/13%) - both of which I understand contain a decent amount of midcap. Hense was my confusion..
Both funds, S&P500 (VIIIX) and SCV (VSIAX), do contain some mid-cap stocks.

Try using Morningstar's free "instant x-ray" tool to see what you have.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

livesoft
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Re: Is Vanguard Portfolio tool accurate?

Post by livesoft » Fri Mar 31, 2017 4:37 pm

ImmigrantSaver wrote:So what is everyone using? Is there a concensus on the best portfolio tool?
From being around this forum for awhile, I think I am correct when I say that most people don't use anything.
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Taylor Larimore
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Post by Taylor Larimore » Fri Mar 31, 2017 4:43 pm

ImmigrantSaver wrote:Hi,

I am trying to analyze my portfolio allocation using both Vanguard Portfolio tool and the Personal Capital and I am getting inconsistent results. For example Vanguard shows a much smaller mid-cap allocation than PC. I was just wondering which is producing more accurate results. Anyone here used both programs?
I.S.

If you own the market it doesn't matter.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

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goingup
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Re: Is Vanguard Portfolio tool accurate?

Post by goingup » Fri Mar 31, 2017 4:48 pm

Vanguard's Portfolio tool is close enough for me. I've used Morningstar Instant X-Ray and it was interesting and more detailed. TRowePrice used to allow access to the Morningstar tools through their web-site but that changed and so I no longer use them. :|

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David Jay
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Re: Is Vanguard Portfolio tool accurate?

Post by David Jay » Fri Mar 31, 2017 7:16 pm

livesoft wrote:
ImmigrantSaver wrote:So what is everyone using? Is there a concensus on the best portfolio tool?
From being around this forum for awhile, I think I am correct when I say that most people don't use anything.
+1
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Sandtrap
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Re: Is Vanguard Portfolio tool accurate?

Post by Sandtrap » Fri Mar 31, 2017 7:25 pm

IMHO read everything on the book list, "Bogleheads Wiki" including Swedroe, Bernstein, etc.
Read the WIKI on "portfolio styles", from "3 fund" etc, etc.
Then post your financials per forum format and get recommendations from the Boglehead Senior Experts.
Feedback back and forth until you find what is comfortable and best for your needs.
No online tool is going to take into consideration your personal and unique situation and needs. Similar to what's on the drive thru window menu vs otherwise. The lst is adequate but when it comes to personal finance, perhaps you want better than "adequate".
Perhaps the "tools" you seek would also be useful to validate a well diversified conservative portfolio arrived at through this process.
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ImmigrantSaver
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Re: Is Vanguard Portfolio tool accurate?

Post by ImmigrantSaver » Fri Mar 31, 2017 9:11 pm

Thank you everyone for your responses. I did do the portfolio overview thread when I started posting on this forum. viewtopic.php?f=1&t=203827&p=3124685#p3124685

A little bit changed since then. I got rid of Reits and High Yield. Increased International to almost 30% (which is a target), and am focusing on approximating total stock from S&P500 (VIIIX) by adding small cap value (80/20% target at 87/13% now) and eventually tilting to SMV (not sure yet how much - researching that part now). So I thought I was on the right track, until I looked at my portfolio with VG tool and it says I am heavily under-allocated in midcap. But I am not sure it's correct and I should probably use Morningstar x-ray before I start adding any midcap funds.

Another option would be to start adding extended market index (VEXMX) and use the existing SMV positions as a tilt.

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ImmigrantSaver
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Re: Is Vanguard Portfolio tool accurate?

Post by ImmigrantSaver » Fri Mar 31, 2017 9:42 pm

livesoft wrote:Neither is accurate for everything.

See this discussion: viewtopic.php?t=150267
Going through this thread now - I should have started with that! Very helpful. Thanks!

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digarei
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Re: Is Vanguard Portfolio tool accurate?

Post by digarei » Fri Mar 31, 2017 9:49 pm

ImmigrantSaver wrote:Thank you everyone for your responses. I did do the portfolio overview thread when I started posting on this forum. viewtopic.php?f=1&t=203827&p=3124685#p3124685

A little bit changed since then. I got rid of Reits and High Yield. Increased International to almost 30% (which is a target), and am focusing on approximating total stock from S&P500 (VIIIX) by adding small cap value (80/20% target at 87/13% now) and eventually tilting to SMV (not sure yet how much - researching that part now). So I thought I was on the right track, until I looked at my portfolio with VG tool and it says I am heavily under-allocated in midcap. But I am not sure it's correct and I should probably use Morningstar x-ray before I start adding any midcap funds.

Another option would be to start adding extended market index (VEXMX) and use the existing SMV positions as a tilt.
At some point, after reviewing the portfolio tools and working through which tilts, if any, you wish to incorporate into your asset allocation, I recommend pouring a little concrete around your allocation decisions and sticking with them.

I took too long to decide, squandering a number of years of potentially high returns, before I arrived at a set and forget portfolio. In recent years, I just rebalance to my objectives and pay no mind to Vanguard's (and anyone else's) opinion regarding my asset allocation.
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