Many Happy Returns Vanguard Goes Global: Is Home Bias a Mistake?
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Jan 28, 2026 Discussion of Vanguard shifting its flagship funds toward global market-cap weighting and trimming the UK tilt. Debate over keeping UK government bonds for safety and inflation linkage. New pure market-cap Life Strategy Global option versus the simplicity of one-fund solutions. Consideration of product gaps Vanguard might fill and likely investor reactions.
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DIY Global Allocation Is Easy And Cheap
- Consider switching only if your fee savings or desired allocation justify the hassle of rebalancing.
- Use simple DIY mixes (US, Developed ex-US, EM) to tilt allocations cheaply and precisely.
Lower Fees And Rebalancing Tools Matter
- Value fee cuts: lower costs directly boost investor returns and save real money over time.
- Consider platform tools for one-click rebalancing before paying higher fund fees for convenience.
Vanguard Reduces UK Tilt In Life Strategy
- Vanguard cut the UK equity tilt from 25% to 20% and the bond tilt from 35% to 20% in Life Strategy funds.
- The change aligns equity and bond UK allocations and reduces relative home bias as UK market share shrank.