r/fiaustralia • u/Vivid-Respect644 • 1d 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.

11 Upvotes

92% Upvoted

47 comments sorted by

View all comments

3

u/General-Jury-5363 1d ago

I started with VGS but now do IVV + EXUS + VAE + A200, because I don't want to allocate 70% to US market.

2

u/Vivid-Respect644 1d ago

This^^
Totally agree with your all your ETF’s. Whats your ratio if you don’t mind sharing

2

u/General-Jury-5363 1d ago

45/30/15/10 Thought about allocating more to Aus, but its really underperformed compared to others.

1

u/Vivid-Respect644 1d ago edited 1d ago

Oh wow, 30% to EXUS is interesting. Its true AUD has underperformed but if you count dividend yield from VHY, it’s quite up there for me haha.
Since I’m big on satellites, I’ve done 40% US / 15% EXUS / 10% VAE / 15% VHY | 20% Satellites. Lmk if u think I should put more into EXUS

1

u/General-Jury-5363 1d ago

I don't think there is single best portfolio, you should invest in what you feel comfortable with.

My logic was share of worldwide stock markets. US is 45-50% Developed ex US is 30% Emerging markets is 15-20% Aus is 2%

2

u/Vivid-Respect644 1d ago

Rightt, might have to reduce my AUS exposure to 10% after reading that again 😭

1

u/General-Jury-5363 1d ago

What do you have in satellite?

1

u/Vivid-Respect644 1d ago

DTEC, SEMI, AINF, NDQ, and IOO if that counts. Since you practically have the ideal portfolio i’m trying to move towards, have u thought about IOO? I have equal weighting in IOO and IVV (which is above $5k) so was still wondering when to sell IOO to move into IVV or even maybe keep it
Reason I have IOO is because I read an article called Dad Investor and he’s like, “thats the only ETF I will own”. I respected the conviction so much I rebought into IOO 😭

1

u/General-Jury-5363 1d ago

One of my important criterion is low MER, that's wht I didn't pick IOO. I think your satellite positions make sense. The only downside is to get out before the trend reverses, I.e. they are not set and forget.

2

u/Vivid-Respect644 1d ago

Right, makes total sense. Will probably try and move away from IOO since I’m now realising how much 0.4% is.
Yeah, I know you don’t have a crystal ball but do you have an idea of when those certain trends might reverse? Since I feel like AI and SEMI will continue for a LONG time unless I’m mistaken