A Deeper Look Into My Vanguard Portfolio Holdings

(scroll to the bottom for this week’s resource of the week)

Hey!

Apologies for the radio silence as of late…

I’ve been busy working on something exciting, which I look forward to sharing with you all within the next few months 👀

But to pick up from where we left off, today I want to give you a deeper insight into the holdings of my Vanguard investment portfolio.

As of writing this post, my portfolio is currently sitting at £64,002.39

What you might find interesting is that this money is split across ONLY two index funds:

1. The U.S. Equity Index Fund

2. The FTSE Global All Cap Index Fund

Super simple right?!

Even Warren Buffett, one of the most successful investors of all time, frequently advocates for keeping investment strategies simple

In fact, numerous studies have shown that simple and passive investment strategies, like index fund investing, frequently outperform more complex, actively managed strategies over time

and by embracing a simple strategy, you also reduce the stress and time commitment involved in managing your portfolio, allowing you to focus on other important aspects of life

So with that being said, here’s a deeper look at the two funds I hold within my Vanguard investment portfolio…

1) The U.S. Equity Index Fund

First up we have the U.S. Equity Index fund - which currently makes up 72% of my Vanguard portfolio.

Why do I invest in this fund?

Put simply, the U.S. market is one of the strongest markets out there, making it a very wise choice for investors to pump their money into

The fund tracks the performance of the total U.S. stock market, providing exposure to large, medium and small cap-sized companies

I prefer this index over the famous S&P500 you may be familiar with since it is way more diverse than the S&P 500…

The S&P500 tracks just 500 of the largest companies within the U.S., whereas this fund tracks all publicly listed companies within the U.S., therefore I have indirect exposure to the S&P500 at the same time as capturing the smaller and medium-sized companies too

Key Stats of the U.S. Equity:
Location: U.S. 🇺🇸
Size: 3,596 stocks
Expense Ratio: 0.1%
Avg Performance (last 5 years): 14.6%

2) The FTSE Global All Cap Index Fund

Next up we have the FTSE Global All Cap Index Fund, making up 28% of my Vanguard portfolio.

Why do I invest in this fund?

As my portfolio is starting to mature in value I have decided to even further diverse my assets by increasing my holdings in global index funds and not being so fully fledged in the U.S.

As mentioned previously, the U.S. stock market has performed phenomenally as of late, but this may not always be the case. Who’s to say that the growth in the U.S. will continue for the next 5,10, 15, years…

The truth is I don’t know, nobody does really…

But diversifying globally so that my portfolio isn’t so concentrated in the U.S. will give me peace of mind

Key Stats of the FTSE Global All Cap:
Location: global 🌎
Size: 7,118 stocks
Expense Ratio: 0.23%
Avg Performance (last 5 years): 11.4%

Final Thoughts

To summarise, my simple portfolio strategy is designed to provide broad diversification with minimal management effort

It achieves a balanced mix of strong U.S. market exposure and global investments, effectively mitigating risk. By spreading my investments across a variety of geographical regions, the portfolio aims to capture growth opportunities while reducing the impact of market volatility

This approach ensures that I can benefit from the robust performance of the U.S. market while also taking advantage of the potential growth in international markets

I hope you enjoyed this read. If you have any questions, simply reply to this email.

I’ll catch you back here next Sunday

over and out ✌️

Monty L.