Inflation, diversification, and the 60/40 portfolio
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.
A consistent approach to active fixed income
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?
On track for success? Insights from stochastic health care modeling
Models that incorporate health care cost uncertainty can benefit retirement planning.
Fine-tuning target date funds for different goals
Vanguard researchers use a retirement planning framework to demonstrate that the addition of a second postretirement asset allocation to a TDF lineup can support a broader range of common retirement goals.
Government bonds can hedge against equity market drops for both U.S. and global investors.
Some patience required: outperformance in active fixed income
New Vanguard research considers the question of patience in active fixed income investing. Outperforming active fixed income funds have periods of underperformance, with differences seen across investment strategies.
Vanguard's framework for constructing globally diversified portfolios
A Vanguard paper reviews the decisions individual investors face when constructing a globally diversified portfolio.
Vanguard Active Fixed Income Perspectives
Low-cost, sophisticated active fixed income can uncover opportunities in this market environment through security selection and thoughtful portfolio construction.
Global equity investing: The benefits of diversification and sizing your allocation
Investors can diversify their equity portfolios by investing outside their home market.
Value versus growth stocks: A reversal
In a reversal from the past ten years, we expect value stocks to outperform growth stocks over the next decade.
Vanguard's roadmap to financial security
Our retirement planning framework allows investors to create a roadmap to financial security.
Bond rates got you spooked? Sit tight
Roger Aliaga-Díaz, Vanguard’s chief economist, Americas, and head of portfolio construction, explains why investors should maintain their bond positions even in an environment of rising interest rates.
TDFs are an increasingly important part of DC plan investment menus.
Uncovering hidden biases in an investment portfolio
A comprehensive analysis reviewing the portfolio’s key exposures, performing scenario analysis and a forward-looking assessment is critical to evaluate a portfolio’s quality relative to its benchmark and/or an investment alternative.