Hi, My understanding is that both VGS and IVV are market-capitalisation based in terms of weighting of underlying stocks. However, I noted that they don't necessarily have the same relative holdings. On 28-Feb-2019, VGS had Apple as #1 and Microsoft as #2. IVV had the reverse. If both are market-cap based, how can this be? Any insights will be appreciated. Jay
https://digital.feprecisionplus.com/documents/tpp/en-au/MQVY/FS Median market cap is the midpoint of market capitalisation (market price multiplied by the number of shares outstanding) of the shares in the fund. Half the shares in the fund will have higher market capitalisation, half will have lower. Benchmark (Bmk) MSCI World ex-Australia (with net dividends reinvested) in Australian dollars Index sorry but the IVV factsheet won't display for me currently but i will guess the benchmarks tracked are slightly different a second possibility is when each portfolio is rebalanced
IVV https://digital.feprecisionplus.com/documents/tpp/en-au/K49D/FS INVESTMENT OBJECTIVE The fund seeks to track the investment results of an index composed of large-capitalisation U.S. equities. The index, the S&P 500®, is designed to measure the performance of large capitalisation US equities and covers approximately 80%* of available market capitalisation. It is widely regarded as the best single gauge of large-cap US equities. VGS the whole world ( except Australia Market allocation (%) Fund Bmk Fund Bmk United States 63.5 63.6 Sweden 0.9 0.9 Japan 8.5 8.5 Italy 0.8 0.8 United Kingdom 6.0 6.0 Denmark 0.6 0.6 France 4.0 3.9 Singapore 0.5 0.5 Canada 3.6 3.6 Finland 0.4 0.4 Switzerland 3.1 3.1 Norway 0.3 0.3 Germany 3.1 3.1 Belgium 0.3 0.3 Hong Kong 1.4 1.4 Ireland 0.2 0.2 Netherlands 1.2 1.2 Israel 0.2 0.2 Spain 1.1 1.1 Other 0.3 0.3
rather typical of what i have found when comparing 'sound alike ETFs when i research sometimes the timing ( of buying ) is a key edge , sometimes the portfolio diversity ( or lack of ) is a winning edge the differences look tiny until you hold them for 10 ( or 20 or 30 ) years cheers