All-in-One Asset Allocation ETFs by Vanguard (CANADA)

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Topic Author
gtaguy
Posts: 4
Joined: Thu Jan 10, 2019 3:17 pm

All-in-One Asset Allocation ETFs by Vanguard (CANADA)

Post by gtaguy » Thu Jan 10, 2019 3:37 pm

Hello All

I have about 25-30 years investment time on hand and save regularly. I recently listened to Taylor Larimore's audiobook on Three-Fund Portfolio and was wondering if something like VGRO will work similarly for me

The ticker is VGRO, the details of the fund is there on the website
https://www.vanguardcanada.ca/individua ... /?overview

I plan to switch to these 2 portfolios over time as I get older, i.e VBAL and VCNS

Please advise what you think about these funds
Last edited by gtaguy on Fri Jan 11, 2019 10:16 am, edited 1 time in total.

andrew99999
Posts: 188
Joined: Fri Jul 13, 2018 8:14 pm

Re: All-in-One ETF by Vanguard

Post by andrew99999 » Fri Jan 11, 2019 12:09 am

Welcome to the forum.
Please use a link that shows what VGRO/VBAL/VCNS actually are. I don't even see them in those links.
Or better to put something like this in:
These funds are "Vanguard diversified funds", a fund-of-funds similar to a target retirement fund but where the AA does not change.

VGRO = 80/20
VBAL = 60/40
VCNS = 40/60

Within the equities allocation, around 40% home country (canada in this case), and 60% global.
I think for someone with 20+ years, VGRO is an excellent fund, and really an ideal solution.

Once you have more substantial assets (which tends to happen as you get older), you will probably want some more bonds.
You can do this by switching to instead accumulating VCNS at some point before retirement so that you are acquiring more bonds than stocks during those last maybe 10 (or however many) years, but it's simpler to instead have a second fund just of bonds which will be important once you actually retire so that in bear markets you can just leave the equities fund alone. I suppose the downside of this vs VCNS is that you may not rebalance from bonds into VGRO in a bear market as many panic at that time. I can't really comment on which way is better. In any case, for the mean time, yes VGRO is excellent IMO.

mcraepat9
Posts: 1062
Joined: Thu Jul 16, 2015 11:46 am

Re: All-in-One ETF by Vanguard

Post by mcraepat9 » Fri Jan 11, 2019 12:47 am

Are you a Canadian investor? You should edit the title of your post to say that. Will ensure you get Canada-specific advice
Amateur investors are not cool-headed logicians.

Topic Author
gtaguy
Posts: 4
Joined: Thu Jan 10, 2019 3:17 pm

Re: All-in-One ETF by Vanguard

Post by gtaguy » Fri Jan 11, 2019 10:26 am

andrew99999 wrote:
Fri Jan 11, 2019 12:09 am
Welcome to the forum.
Please use a link that shows what VGRO/VBAL/VCNS actually are. I don't even see them in those links.
Or better to put something like this in:
These funds are "Vanguard diversified funds", a fund-of-funds similar to a target retirement fund but where the AA does not change.

VGRO = 80/20
VBAL = 60/40
VCNS = 40/60

Within the equities allocation, around 40% home country (canada in this case), and 60% global.
I think for someone with 20+ years, VGRO is an excellent fund, and really an ideal solution.

Once you have more substantial assets (which tends to happen as you get older), you will probably want some more bonds.
You can do this by switching to instead accumulating VCNS at some point before retirement so that you are acquiring more bonds than stocks during those last maybe 10 (or however many) years, but it's simpler to instead have a second fund just of bonds which will be important once you actually retire so that in bear markets you can just leave the equities fund alone. I suppose the downside of this vs VCNS is that you may not rebalance from bonds into VGRO in a bear market as many panic at that time. I can't really comment on which way is better. In any case, for the mean time, yes VGRO is excellent IMO.
Sorry for the lack of details in my post, I have fixed the links now reflecting the fund details on Vanguard's website.

I really appreciate your help in explaining the asset allocation and strategy for the future

Topic Author
gtaguy
Posts: 4
Joined: Thu Jan 10, 2019 3:17 pm

Re: All-in-One ETF by Vanguard

Post by gtaguy » Fri Jan 11, 2019 10:26 am

mcraepat9 wrote:
Fri Jan 11, 2019 12:47 am
Are you a Canadian investor? You should edit the title of your post to say that. Will ensure you get Canada-specific advice
I have fixed it now, cheers :)

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