Our 10-year return outlooks for most stock and bond sub-asset classes are lower as of September 30, 2025, compared with the end of the second quarter. Relatively strong returns and increased valuations during the third quarter for U.S. bonds and U.S and international stocks contributed to the change.

Bonds continue to deliver this year, thanks to higher coupons, price appreciation, and spread compression.

Each month, you'll have access to the latest insights from our Portfolio Solutions experts to help you address evolving issues that may affect your clients' portfolios. In this edition:

Proprietary Vanguard data confirm recent trends observed in government data on the U.S. labor market: Hiring has slowed, but low layoff rates and solid income growth point to a labor market that remains strong for those currently employed. This resilience should support consumer spending and is likely to keep the Federal Reserve focused on inflation risks.

We dispel assertions tied to the growth of index fund investing and offer evidence that refutes key misperceptions.

Investors face persistent behavioral challenges—such as inertia, present bias, and limited attention—that can quietly erode long-term financial outcomes. At Vanguard, we see these cognitive biases not as investor failings, but as opportunities to design digital experiences that are intuitive and easy to use, while nudging investors toward better decisions and stronger financial outcomes.

Vanguard helps investors make smarter financial choices using behavioral science and digital design.

Imagine investing in an active equity fund that promises a focus on growth—only to discover that the fund has moved away from its stated style, and many of its holdings are instead value stocks. This phenomenon, known as style drift, can catch investors off guard and can sometimes lead to disappointment, as it causes the actual style exposure of portfolios to differ from expectations.