ESG investors want to invest with confidence. Confidence that they are aligning their investments with their values. Confidence that the screening process results in an investment that maintains a high correlation to the parent benchmark.
Vanguard research highlights the risks associated with generating income strictly from portfolio yield and why a total return approach makes sense, particularly during this prolonged period of low yields.
Vanguard believes material environmental, social, and governance (ESG) risks can impact long-term value creation in portfolio companies. As a result, ESG considerations are integrated into product design and investment processes across our funds.
Kunal Mehta, senior investment specialist, fixed income, and Loubna Moudanib, credit analyst in Vanguard's Fixed Income Group, explore the opportunities and risks in the growing universe of green bonds.
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.
23 Dec 2020
read time15 min
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