High cash percentage in Vanguard Total International Stock Index Fund?

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wwtas
Posts: 18
Joined: Fri Dec 04, 2015 2:47 am

High cash percentage in Vanguard Total International Stock Index Fund?

Post by wwtas » Sun Jul 15, 2018 6:14 pm

I was surprised when I recently looked at my personalcapital.com account and saw they reported a larger than expected cash allocation, due to VTIAX (Vanguard Total International Stock Index Fund Admiral Shares). So I checked Vanguard website, and indeed the fund seems to be holding 3.9% cash at this time (short-term reserve tab at https://investor.vanguard.com/mutual-fu ... o-holdings shows around 13.5 billion in cash equivalents, total fund assets are 343.3 billion).

Has anyone been looking at this and is this a usual situation?

For comparison, for VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares) it seems to be around 0.7% cash.

balbrec2
Posts: 94
Joined: Mon Nov 13, 2017 3:03 pm

Re: High cash percentage in Vanguard Total International Stock Index Fund?

Post by balbrec2 » Sun Jul 15, 2018 8:37 pm

That fund(index) is currently trending down so it wouldn't shock me to see a little bit
higher liquidity for anticipated redemptions (investor panic). Not everyone is a Boglehead.

MotoTrojan
Posts: 2249
Joined: Wed Feb 01, 2017 8:39 pm

Re: High cash percentage in Vanguard Total International Stock Index Fund?

Post by MotoTrojan » Sun Jul 15, 2018 8:45 pm

Usually these broad index funds will hold some cash but use derivative type products to maintain full exposure to the index, ideally resulting in only trailing the index by expenses (and sometimes less with security lending).

You shouldn’t expect cash drag from this.

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