U.S. equities outperformed their international counterparts by 8 percentage points per year on average over the 10 years ended December 31, 2019. However, our proprietary Vanguard Capital Markets Model (VCMM) suggests that this outperformance is unlikely to persist over the next 10 years.
When to replace fundamental active equity funds with factor funds
The continued development of strategies to harvest factor returns in a low-cost manner has effectively raised the bar for many fundamental active managers who need to generate outperformance to justify their higher fees.
Can active equity managers be cloned using factor funds?
Vanguard presents a framework for determining if an active equity manager can be cloned using factor funds.
An enduring solution to low yields
An introduction to Vanguard's approach to total return investing.
ESG: Putting it all together and making decisions
Interest in ESG in Australia is healthy and growing, even as measured against global trends and the events of 2020 have only compounded those preferences.
Choosing an index fund: it's more than just expense ratio
Since the first index fund was launched some 45 years ago, millions of investors across the world have taken advantage of this easy-to-implement investment vehicle that offers transparency, diversification, low-costs and tax efficiency.
Why a 'total return' approach to investing is right for the COVID-19 era
A 'total-return' approach allows investors to separate the spending strategy that best suits their goals in retirement from their portfolio strategy.
Beyond expense ratio: A contemporary guide to index fund manager selection
This paper provides a contemporary framework for evaluating index funds and asset managers by assessing fund expenses as only one component of a broader set of qualitative and quantitative factors.
The Idea Multiplier: An acceleration in innovation is coming
In this paper, we introduce our concept of the Idea Multiplier, a metric to measure the spread of new ideas. Because the Idea Multiplier has recently accelerated, we expect productivity growth to rise in the near future.
The urban legends of active share
Vanguard analysis finds that high-active-share funds on average don't outperform low-cost, low-active-share funds.
The importance of cost in retirement
Retirement is complex, and in spite of the volumes of research on the topic, there are rarely simple answers to many questions for those moving into retirement.
The case for low-cost index-fund investing
Low-cost indexing's popularity has swelled thanks to an increased scrutiny of costs among investors.
Indexing still has plenty of room to grow
Indexing's dynamic growth has delivered a host of benefits for investors, and Vanguard CEO Tim Buckley explains why there is still room to grow.
How much home country bias is too much?
If Australia's dream equities run comes to an end, investors may start to feel the pain, particularly when their standard of living in retirement is at stake.
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