[Smart Investing] Index or active, what's right for you?

Investments and personal finance insights from Vanguard Australia

20 May 2020 Hi everyone,  In this week's Smart Investing, we discuss why instead of asking whether an index or active investment strategy is better, investors should be considering what the right combination is for their portfolio and risk appetite. Vanguard Senior Financial Writer Tony Kaye also takes a look at the increase in global demand for Australian government bonds. Despite the much-publicised recent volatility on fixed interest markets, caused by panic selling, investors are continuing to back the broader stability and lower risk of investment grade bonds. Lastly, we discuss why self-managed super funds also need to factor in the need for liquidity – particularly when they are approaching or indeed are already in the drawdown or pension phase. Please take a moment to complete a short survey so we can understand what content interests you. The survey takes only a few minutes and is a great opportunity for you to provide any feedback or suggestions that you might have for Smart Investing. We look forward to hearing from you. Regards, Robin Bowerman Head of Corporate Affairs Vanguard Australia

Index or active, what’s right for you? By: Robin Bowerman Now that the initial COVID-19 shock has passed through markets, investors might be wondering if buying the index is still a sound strategy when certain sectors are being impacted more than others. Read More

The great Australian bonds rush  By: Tony Kaye The onset of COVID-19 has been the catalyst for many unprecedented crisis responses, including Australia's biggest ever government bonds issuance program. Read More

SMSF liquidity lessons learnt from the pandemic By: Robin Bowerman Liquidity is one of those things that investors – both professional and individual – can take for granted particularly after an extended period of relatively strong growth in investment markets. Read More

VANGUARD IN THE NEWS Investment giants ask exchanges to enforce a labelling system for ETFs Dawn Lim | The Australian | 14 May 2020 BlackRock, State Street Global Advisors and some other large money managers are asking exchanges to enforce a more narrow definition of exchange-traded funds. These firms want a new naming system reflected in exchange data feeds that go out to traders and investors. To read more, please visit the The Australian 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.

IN CASE YOU MISSED IT

Where to start when you need advice about your superannuation By: Robin Bowerman Where do you go and who do you ask when you have questions about your superannuation decisions? Read More

How to manage short-term market volatility By: Tony Kaye It's not good investment sense to be swayed by the day-to-day movements of financial markets, especially by reacting to volatility with knee-jerk investment decisions. Read More

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