Number of holdings in VEU are also in VGS?

Discussion in 'Share Investing Strategies, Theories & Education' started by Jay__, 2nd Jan, 2018.

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  1. Jay__

    Jay__ Member

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    I know Nestle SA, HSBC Holdings plc, Novartis, Roche Holding AG, Toyota Motor Corp., British America Tobacco plc and at least 20 others are in both VEU and VGS.

    Does any know the total number of VEU holdings that are also in VGS?

    Or alternatively, what percentage of VGS is made up of holdings that are also in VEU?

    Thanks.
     
    Jay__, 2nd Jan, 2018
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  2. Hodor

    Hodor Well-Known Member

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    VGS is a world index by cap minus AUS of about 1500 companies
    VEU is a world index by cap minus US (with greater depth from memory) of about 2500 companies

    If you take the US companies out of VGS (about 60% by weight) then the remaining companies could be reasonably expected to appear in VEU.

    So to answer the above, about 40% of the companies in VGS would be expected to appear in VEU.

    The weighting of these similarities is going to be different.

    Why do you ask?
     
    Hodor, 2nd Jan, 2018
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  3. Jay__

    Jay__ Member

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    Thanks for that. Yes, I did not the similarities had different weightings.

    I've just started to index (about 3-4 months). I've got 50/50 VAS/VGS atm. Trying to work out if I should also get VGE (in time). Rationale being, the more of VGE holdings being inside VGS, the less likely I would need/want to.

    From my research, 3 of the top 10 VGE holdings isn't in VGS though, which i thought was strange (namely Tencent Holdings, Samsung Electronics and Taiwain Semiconductor Manufactring). I guess just different priority areas.
     
    Jay__, 2nd Jan, 2018
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  4. Hodor

    Hodor Well-Known Member

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    VGS targets developed and VGE emerging markets, I am surprised there is any overlap, FTSE and MSCI must have some differences in how they class markets.

    It is not an area I am familiar.
     
    Hodor, 2nd Jan, 2018
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  5. Jay__

    Jay__ Member

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    Yeah, I was surprised too. That's why I was wondering if anyone knew the actual amount of overlap.
     
    Jay__, 3rd Jan, 2018
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  6. twisted strategies

    twisted strategies Well-Known Member

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    twisted strategies, 3rd Jan, 2018
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  7. Hodor

    Hodor Well-Known Member

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    You were talking about VEU first and then VGE. Are you looking at one or both? Quite different markets and purposes
     
    Hodor, 6th Jan, 2018
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  8. Jay__

    Jay__ Member

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    Sorry, I did get mixed up a bit. I meant to ask about VGE all along.
     
    Jay__, 29th Jan, 2018
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