Clients will often begin the investment plan construction phase with a desired return objective in mind, but the problem is that their expectations can be inflated by what they see or read in the media. Some clients might even be in a rush to skip building a comprehensive plan altogether and to fill their portfolios with investments sporting attractive recent returns.
Clients will often begin the investment plan construction phase with a desired return objective in mind, but the problem is that their expectations can be inflated by what they see or read in the media. Some clients might even be in a rush to skip building a comprehensive plan altogether and to fill their portfolios with investments sporting attractive recent returns.
The BRICS’ (Brazil, Russia, India, China, and South Africa) prominence in the global market has swelled over the last decade and a half. Today, these emerging markets account for nearly 25% of global gross domestic product, more than triple what they did in 2001. But beyond the catchy acronym, does grouping these markets together make sense for investors?
The BRICS’ (Brazil, Russia, India, China, and South Africa) prominence in the global market has swelled over the last decade and a half. Today, these emerging markets account for nearly 25% of global gross domestic product, more than triple what they did in 2001. But beyond the catchy acronym, does grouping these markets together make sense for investors?
On June 23, in a long-anticipated, widely reported referendum in the United Kingdom, voters chose to leave the European Union. The debate over whether to stay or leave (which became known as Brexit) began not long after the United Kingdom joined the E.U. in 1973. It finally culminated in this decision—a momentous one for the United Kingdom, Europe, and beyond, given that the United Kingdom is a global financial center and the world’s fifth-largest economy. And the E.U., a union of 28 states, includes four of the world’s seven largest developed economies.
On June 23, in a long-anticipated, widely reported referendum in the United Kingdom, voters chose to leave the European Union. The debate over whether to stay or leave (which became known as Brexit) began not long after the United Kingdom joined the E.U. in 1973. It finally culminated in this decision—a momentous one for the United Kingdom, Europe, and beyond, given that the United Kingdom is a global financial center and the world’s fifth-largest economy. And the E.U., a union of 28 states, includes four of the world’s seven largest developed economies.
By Kevin J. DiCiurcio, CFA; Lucy Momjian, CFA
By Kevin J. DiCiurcio, CFA; Lucy Momjian, CFA
For most Americans, Social Security is a big part of their retirement income
For most Americans, Social Security is a big part of their retirement income
Rebalancing client portfolios requires a delicate balance. It can provide risk control, but rebalancing too often could incur needless costs. This research paper evaluates the benefits and challenges of rebalancing and offers rebalancing strategies and best practices.
Mutual funds and ETFs are increasingly popular investment vehicles. They share a lot of similarities; both are pooled vehicles that provide exposure to various markets, diversification, and generally reasonable investment costs. So how do you decide which best supports your client’s investment strategy?
Much like 2015, global growth will remain frustratingly fragile in 2016, according to Vanguard’s 2016 economic and investment outlook.
Much like 2015, global growth will remain frustratingly fragile in 2016, according to Vanguard’s 2016 economic and investment outlook.
Over the long term, tax-wary investors have learned one sure thing: The tax code is never static. Despite being unable to predict future tax legislation, though, are there ways to manage a portfolio that could increase its tax efficiency over the long haul?
by Maria Bruno
Since its beginnings in the early 1970s, indexing as an investment strategy in the United States has grown rapidly and has performed favorably in relation to actively managed investment strategies. Indexing has many recognized advantages: low costs, broad diversification, minimal cash drag, and—for taxable investors—the potential for tax-efficiency.
Factors are the underlying exposures that explain and influence an investment’s risk-and-return characteristics. Common factors include value, size, momentum, and credit—but no definitive list exists.
The lingering low-yield environment has been challenging for sure. Many bond investors, fearful of rising interest rates, have shortened duration¹ to protect principal. Others, with a desire to boost income or maximize return, have lengthened duration in an attempt to capture the higher yields and returns offered further out on the yield curve.
Although ETFs effectively blend the investment characteristics of mutual funds with the trading flexibility of individual stocks, they trade somewhat differently than either of those assets. Investors may need to learn different tools and strategies when trading ETFs; unlike mutual funds, for example, investors generally bear the full costs of trading ETFs in their personal transactions. In a new Vanguard research paper, ‘Best practices’ for ETF trading: Seven rules of the road, authors Joel M. Dickson and James J. Rowley Jr. outline ETF trading best practices that emphasize price control and patience. Investors may be able to better control transaction costs by incorporating these practices.
