The Vanguard LifeStrategy® 60% Equity ETF builds a diversified portfolio by allocating approximately 60% to equity securities and 40% to fixed income instruments. It achieves this mix by investing mainly in passively managed exchange-traded funds (ETFs) and other collective investment schemes that track various market indices. This approach allows the fund to gain broad exposure to different sectors and regions through underlying UCITS-compliant funds, including those managed by Vanguard. The portfolio is actively adjusted by the investment manager to maintain the desired asset allocation and respond to market changes.