Getting a good balance in 2021

Investments and personal finance insights from Vanguard Australia

10 February 2021 Hi everyone, In this week's Smart Investing, Vanguard Senior Personal Finance Writer Tony Kaye discusses why investment portfolio allocations may have moved out of kilter over the last year and what to pay attention to when making decisions to rebalance. Vanguard economists also analyse the effects of "whatever it takes" fiscal and monetary policy and why it's unlikely to end anytime soon. Lastly, we re-share a piece by Geoff Parrish, Head of Vanguard's Asia-Pacific Fixed Income Group; a timely reminder on why there is always a role for fixed income in a well-diversified portfolio. Regards, Robin Bowerman Head of Corporate Affairs Vanguard Australia

Getting a good balance in 2021 By: Tony Kaye After such a tumultuous year on global financial markets in 2020, the value weightings of your current holdings may be out of kilter with your target asset mix and it may be prudent to recalibrate your portfolio. Read more

For now, policy remains a tailwind When it became clear early in 2020 that the COVID-19 pandemic stood to convulse the global economy, central banks acted swiftly, slashing interest rates to near zero and establishing programs to buy government and corporate bonds by the hundreds of billions of dollars, euros, and pounds. Read more

The benefits of going global with bonds By: Geoff Parrish As 2020 illustrated, the role of fixed income - as a diversifier in an investment portfolio, serving as a ballast to equities - has never been more important. Read more

VANGUARD IN THE NEWS 2020 was a record year for Australian ETFs Emma Rapaport | Morningstar | 8 Feb 2021 The Vanguard Australian Shares ETF (VAS) retained the crown of the largest ETF in the market, attracting an additional $2 billion in assets. 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.

IN CASE YOU MISSED IT

5 things you should know about fees By: Robin Bowerman Vanguard's founder Jack Bogle once said: "common sense tells us that performance comes and goes, but costs go on forever." Here are five things you should know about fees before you invest in ETFs. Read more

How to pass the diversification test By: Tony Kaye Diversification, spreading your money across a range of different assets rather than putting it all into one place, is one of the core principles of investment risk management. That's because investment returns from different assets are never consistent. Read more

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