Implementing an investment strategy is often presented as a choice based on whether a fund is labeled “active” or “index.” Those labels are important, as they convey pertinent information about funds. However, I believe it’s more important that investors consider the characteristics behind those labels. Doing so can strengthen investors’ conviction about why they might include active and index funds in their investment plan and can increase their chances of success.

Active management can outperform—given the right combination of talent, discipline, and incentives strictly aligned with those of clients. And Vanguard has that in spades.

More and more investors and financial advisors are building portfolios that align with individual goals by combining multiple index ETFs. While this approach offers many benefits, it may harbor a hidden risk: The varying rules for constructing indexes among different providers can lead to significant deviations from benchmark exposures. This can inadvertently increase portfolio volatility and affect returns, making it crucial to understand these differences before blending ETFs from different index families.

Vanguard CEO Salim Ramji recently appeared on Bloomberg TV’s Wall Street Week as Vanguard marked its 50th anniversary. Among other topics, Ramji discussed recent volatility in the markets and how Vanguard clients reacted, our ongoing commitment to lowering fees—something we did yet again in February—and maintaining a sense of consistency around our purpose while extending the "Vanguard effect" into areas like fixed income, cash management, and advice. You can watch the 10-minute segment below.

Investors have faced a wild ride in 2025—and the excitement, for better or worse, may not be over. Equity and fixed income markets took less than a month to recover after U.S. tariff announcements in early April sent them reeling, giving investors a valuable opportunity to reexamine their relationship with risk.

In an unlikely sequence of events, markets have just navigated a dramatic round-trip: a sharp spike in volatility and a market sell-off, followed by an equally swift return to relative calm.

Vanguard has updated its outlooks for the annualized 10- and 30-year performance (total returns and volatility levels) of broad asset classes based on an April 30, 2025, running of the Vanguard Capital Markets Model (VCMM). The probabilistic return assumptions depend on market conditions and can change with each running over time.

Global trade developments have made us more optimistic for modest economic growth in 2025. But policy uncertainty remains high.

Corporate earnings calls are a trove of information, but listening to all of them is a monumental task. Artificial intelligence presents an opportunity for Vanguard to analyze earnings calls at scale for signs that a company is poised to cut its dividend. This is one of many AI experiments we’re conducting to extract insights from every conceivable piece of information to help give investors the best chance for investment success.