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VGS and IVV Underlying Holdings

Discussion in 'General Investing Discussion' started by Jay, 7th Apr, 2019.

  1. Jay

    Jay Member

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    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
     

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  2. twisted strategies

    twisted strategies Well-Known Member

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    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
     
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  3. twisted strategies

    twisted strategies Well-Known Member

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    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
     
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  4. Jay

    Jay Member

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    Good points about the slightly different benchmark and/or when each ETF is rebalanced
     
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  5. twisted strategies

    twisted strategies Well-Known Member

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    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