AOR or VSMGX 60/40 Is there a home country bias?

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invest2bfree
Posts: 1279
Joined: Sun Jan 12, 2020 8:44 am

AOR or VSMGX 60/40 Is there a home country bias?

Post by invest2bfree »

AOR- ISHARES CORE GROWTH ALLOCATION ETF
VSMGX- Vanguard LifeStrategy Moderate Growth Fund Investor Shares
VT VANGUARD TOTAL WORLD STOCK INDEX FUND

I would like to know US and xUS is fixed or floating for AOR or VSMGX.

VT -
United States (58.87%)

AOR
United States (62.30%)

VSMGX
United States 62.70%

The deviation from market weights is this by design?
36% (IRA) - Individual LT Corporate Bonds , 33%(taxable) - schy, 33%(taxable) - SCHD Dividend Growth
sycamore
Posts: 6309
Joined: Tue May 08, 2018 12:06 pm

Re: AOR or VSMGX 60/40 Is there a home country bias?

Post by sycamore »

invest2bfree wrote: Sun Dec 05, 2021 8:52 am AOR- ISHARES CORE GROWTH ALLOCATION ETF
VSMGX- Vanguard LifeStrategy Moderate Growth Fund Investor Shares
VT VANGUARD TOTAL WORLD STOCK INDEX FUND

I would like to know US and xUS is fixed or floating for AOR or VSMGX.

VT -
United States (58.87%)

AOR
United States (62.30%)

VSMGX
United States 62.70%

The deviation from market weights is this by design?
Double check your numbers, they don't match what I see on Vanguard as 10/31/2021:

For VSMGX , US is (37.1 / (37.1+24)) = 60.7%.
For VT, it shows US at 59.4%.

VT by design is floating. Both US and ex-US float every day.

VSMGX is a fixed allocation, 60% US / 40% ex-US. It's not going to be precisely 60.000% every day.

You can find more about LifeStrategy funds including their AA in the Bogleheads wiki article https://www.bogleheads.org/wiki/Vanguar ... tegy_Funds. When we say the AA is fixed, that doesn't mean fixed forever -- Vanguard has changed the AA a few times over the years as you can see in that wiki article.

AOR (one of the iShares Core Allocation ETFs) also uses a fixed allocation.
Topic Author
invest2bfree
Posts: 1279
Joined: Sun Jan 12, 2020 8:44 am

Re: AOR or VSMGX 60/40 Is there a home country bias?

Post by invest2bfree »

My numbers came from Fidelity.

Okay thanks so it is US - 60% and xUS - 40% fixed.

I wish it was floating, but heck it is what it is.
36% (IRA) - Individual LT Corporate Bonds , 33%(taxable) - schy, 33%(taxable) - SCHD Dividend Growth
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