Hey everyone!
I’m faced with a math problem.
I would like to achieve 80% US equity vs. 20% of world distribution ex-US, with two funds:
- VNRT that has: 95.3% of US funds, and 4,7% of Canadian
- VWRD that has: 55.3% of US funds and 44,7% of world funds
What percent of both do I need to hold to achieve the end ratio of 80:20?
Thanks for your help!!
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Just through trial and error, 62% VNRT and 38% VWRD should give you 80.1% US equity. Hope this helps.
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@CavanHaganInvesting thanks for your help! Yes, this helps most definitely!
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Chanou
4
The math answer would be:
x*0.953 + (1-x)*0.553 = 0.8, and solving for x gives
x = 0.6175, or 61.75% of VNRT.
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@Chanou thanks for the detailed calculation, I really appreciate your help!
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