With the popularity of ETFs on the rise, trading volumes continue to beat records year over year. As a result, those of us on the Capital Markets desk are having numerous conversations about ETF structure and trading dynamics, with our goal being to help as many clients as possible achieve trading success through the best possible execution.
As inflation rises, so do the correlations of stock and bond returns. How much inflation would create an environment for positive correlations and diminished diversification in balanced portfolios? More than we expect to see.
For most investors, fixed income should be the part of their portfolio they can rely on – the solid bedrock that delivers stability, in good times and bad. The importance of consistency applies as much to active fixed income as it does to bond index exposures, but how can active bond fund managers generate alpha from asset classes like global credit or emerging market bonds that investors can rely on?
A fresh concern over persistent inflation across the developed and emerging world, together with a more hawkish signal from the Fed soured sentiment and prompted a sell-off in EM HY has made the past month one of the more challenging periods for Emerging Markets in some time..
U.S. pension plan sponsors have been using plan design changes, asset allocation changes, and liability transfers to offset the impact of pension volatility on their financial statements. Vanguard takes an in-depth look at how pension risk can affect corporate financials, and at the new trends in plan management.