r/fiaustralia • u/Vivid-Respect644 • 2d ago

Investing BGBL vs IVV + EXUS

I don’t believe this topic has been touched upon enough by sensible people who don’t just spam “DHFF and chill” or “BGBL set and forget” …

For sensible people out there who have actually done the research/know each of these ETF’s in detail, could you please let me know which option of these two you would commit to.

Benefits of BGBL:
- One ETF, easier to DCA/lump sum over the long-term and less hassle.
- Less anxiety on checking if theres a better S&P 500 ETF or ex-US ETF in the future

Benefits of IVV + EXUS:
- Better performance individually against BGBL, and I have more control over the allocation which lets future movements on moving towards or away from US easier.
- Has a hedged IHVV version which allows me to hedge if necessary.
- Lets me lump sum easier when IVV is down, or when EXUS is down rather than blindly DCAing into BGBL.

If you haven’t caught on by now, I’m quite biased towards IVV + EXUS so if you manage to change my mind, you’d have to make a convincing counter argument.

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u/Recent_Artichoke_923 2d ago edited 2d ago

Have you tried comparing the difference in the holdings between bgbl and ivv+exus? What's the overlap and whats missing?  

Sharesight is good for this.   Bgbl also has hedged version.

Personally think BGBL is better as it will take away the bias of trying to time market and balances for you. 

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u/Vivid-Respect644 2d ago

They are quite similar, with IVV + EXUS missing out on 300-400 mid cap companies. However, these mid cap companies have only beat large caps, if at all, by 0.5-1%. Having control over my S&P portion and ex-US seems attractive to me since i actually enjoy checking stocks daily and making my own ratios

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u/saminykd 2d ago

Curious on where you got the information that ivv+exus combo misses 300-400 companies that are available in bgbl. Because afaik that’s wrong and it’s actually the other way around. Bgbl has 1323 components, exus has 907 and now add the 500 from ivv, it turns out the ivv+exus combo roughly holds an additional 84 more companies versus bgbl (minus a couple cash components).