pb4uski
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I was curious as to how the changed recommendation compares to the global equity allocation and did the following analysis comparing 70/30 and 60/40 mixes of Total Stock/Total International Stock to the Total World fund.
A 51.7/48.3 mix gets one to Total World, so it seems that Vanguard is simply looking to move its target date portfolios closer to the global market composition and is bridging half of the current difference.
As for me, I'll probably transition slowly to a higher international allocation.
A 51.7/48.3 mix gets one to Total World, so it seems that Vanguard is simply looking to move its target date portfolios closer to the global market composition and is bridging half of the current difference.
As for me, I'll probably transition slowly to a higher international allocation.
Total World | Total Stock | Total Int'l | Current 70/30 | Diff from Total World | New 60/40 | Diff from Total World | ||||
United States | 51.7% | 100.0% | 70.0% | 18.3% | 60.0% | 8.3% | ||||
Japan | 8.1% | 16.8% | 5.0% | -3.1% | 6.7% | -1.4% | ||||
United Kingdom | 6.9% | 14.3% | 4.3% | -2.6% | 5.7% | -1.2% | ||||
Canada | 3.2% | 6.7% | 2.0% | -1.2% | 2.7% | -0.5% | ||||
France | 3.0% | 6.1% | 1.8% | -1.2% | 2.4% | -0.6% | ||||
Germany | 3.1% | 6.3% | 1.9% | -1.2% | 2.5% | -0.6% | ||||
Switzerland | 3.0% | 6.1% | 1.8% | -1.2% | 2.4% | -0.6% | ||||
Australia | 2.5% | 5.1% | 1.5% | -1.0% | 2.0% | -0.5% | ||||
China | 2.2% | 4.7% | 1.4% | -0.8% | 1.9% | -0.3% | ||||
Korea | 1.5% | 3.2% | 1.0% | -0.5% | 1.3% | -0.2% | ||||
Taiwan | 1.5% | 3.1% | 0.9% | -0.6% | 1.2% | -0.3% | ||||
Hong Kong | 1.3% | 2.6% | 0.8% | -0.5% | 1.0% | -0.3% | ||||
India | 1.1% | 2.3% | 0.7% | -0.4% | 0.9% | -0.2% | ||||
Spain | 1.1% | 2.3% | 0.7% | -0.4% | 0.9% | -0.2% | ||||
Sweden | 1.1% | 2.2% | 0.7% | -0.4% | 0.9% | -0.2% | ||||
Netherlands | 0.9% | 2.0% | 0.6% | -0.3% | 0.8% | -0.1% | ||||
Italy | 0.9% | 1.8% | 0.5% | -0.4% | 0.7% | -0.2% | ||||
South Africa | 0.8% | 1.7% | 0.5% | -0.3% | 0.7% | -0.1% | ||||
Brazil | 0.7% | 1.5% | 0.5% | -0.3% | 0.6% | -0.1% | ||||
Denmark | 0.6% | 1.2% | 0.4% | -0.2% | 0.5% | -0.1% | ||||
Belgium | 0.5% | 1.0% | 0.3% | -0.2% | 0.4% | -0.1% | ||||
Mexico | 0.5% | 0.9% | 0.3% | -0.2% | 0.4% | -0.1% | ||||
Singapore | 0.5% | 1.1% | 0.3% | -0.2% | 0.4% | -0.1% | ||||
Finland | 0.3% | 0.7% | 0.2% | -0.1% | 0.3% | 0.0% | ||||
Malaysia | 0.4% | 0.9% | 0.3% | -0.1% | 0.4% | 0.0% | ||||
Indonesia | 0.3% | 0.6% | 0.2% | -0.1% | 0.2% | -0.1% | ||||
Norway | 0.3% | 0.5% | 0.2% | -0.2% | 0.2% | -0.1% | ||||
Russia | 0.3% | 0.7% | 0.2% | -0.1% | 0.3% | 0.0% | ||||
Thailand | 0.3% | 0.6% | 0.2% | -0.1% | 0.2% | -0.1% | ||||
Israel | 0.2% | 0.5% | 0.2% | -0.1% | 0.2% | 0.0% | ||||
Philippines | 0.2% | 0.4% | 0.1% | -0.1% | 0.2% | 0.0% | ||||
Poland | 0.2% | 0.3% | 0.1% | -0.1% | 0.1% | -0.1% | ||||
Turkey | 0.1% | 0.3% | 0.1% | 0.0% | 0.1% | 0.0% | ||||
Austria | 0.1% | 0.2% | 0.1% | 0.0% | 0.1% | 0.0% | ||||
Chile | 0.1% | 0.3% | 0.1% | 0.0% | 0.1% | 0.0% | ||||
Colombia | 0.1% | 0.1% | 0.0% | -0.1% | 0.0% | -0.1% | ||||
Egypt | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | ||||
Ireland | 0.1% | 0.2% | 0.1% | 0.0% | 0.1% | 0.0% | ||||
New Zealand | 0.1% | 0.2% | 0.1% | 0.0% | 0.1% | 0.0% | ||||
Portugal | 0.1% | 0.1% | 0.0% | -0.1% | 0.0% | -0.1% | ||||
United Arab Emirates | 0.1% | 0.2% | 0.1% | 0.0% | 0.1% | 0.0% | ||||
Czech Republic | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | ||||
Greece | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | ||||
Hungary | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | ||||
Morocco | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | ||||
Other | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | ||||
Peru | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | ||||
Virgin Islands British | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | ||||
100.0% | 100.0% | 100.0% | 100.0% | 0.0% | 100.0% | 0.0% | ||||