[Smart Investing] 5 things to understand about index funds

Investment and personal finance insights from Vanguard Australia

04 September 2019

5 things to understand about index funds Back when Vanguard introduced the first index fund for individual investors more than 40 years ago, people called it a folly and predicted its quick demise. Instead, indexing became a huge market force.     Read more

Falling yields. Understanding the rush to fixed income On the surface, it may seem illogical that investors around the world are flocking to fixed income securities at the fastest pace since the Global Financial Crisis.     Read more

Investors are "voting with their feet" on costs Lower costs allow investors to keep a greater share of an investment's return. For more than ten years, investors have been favouring low-cost equity and bond funds.     Read more

Vanguard in the news Fixed income flows fire up Morningstar | Nicki Bourlioufas | 26 August 2019 This year has been good for bonds and they have been in high demand, forcing up prices. Investors have been selling out of equities and piling into fixed-income managed and exchange-traded funds as fears of a global recession mount, though experts warn the best returns could be behind us. Jeff Johnson, head of the fixed income group at Vanguard Asia-Pacific, says there is no doubt that demand for fixed-income securities has been very strong. "This could be attributed to a range of factors including the growing concern around the risk of a recession, thus causing investors to seek out high quality, liquid, safe havens that are likely to provide protection in the event of a market selloff in equities," says Johnson. To read more, please visit the Morningstar website. Please note the link above will show a copy of the article (where freely available), or the publisher's website if a subscription is required. QUICK LINKS Exchange Traded Funds Retail managed funds CONNECT WITH US LinkedIn Twitter

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