Active, index, or both?

Investments and personal finance insights from Vanguard Australia

14 April 2021 Hi everyone, In this week's Smart Investing, Vanguard Australia's Head of Investment Strategy, Aidan Geysen, addresses the age-old active vs index investing dilemma by discussing why it's not an either/or proposition, but rather how to use a combination of both. Senior Personal Finance Writer Tony Kaye also explains what CFDs and binary options are, and why ASIC is clamping down on these two popular investment products. Lastly, our Chief Economist (Americas) and Head of Portfolio Construction Roger Aliaga-Díaz takes a look at why bond investors should hold and not fold, even as rates are rising. Regards, Robin Bowerman Head of Corporate Affairs Vanguard Australia

Active, index, or both? By: Aidan Geysen Instead of choosing between index and active investing, consider the core-satellite approach wherein the best aspects of both strategies are combined to construct a portfolio. Read more

ASIC clamps down on two high-risk investment products By: Tony Kaye What are contracts for difference (CFDs) and binary options? Why is ASIC now tightening restrictions on these two high-risk investment products? Read more

Rising rates don't negate benefits of bonds By: Roger Aliaga-Díaz Roger Aliaga-Díaz, Vanguard's chief economist, Americas, and head of portfolio construction, explains why investors should maintain their bond positions even in an environment of rising interest rates. Read more

VANGUARD IN THE NEWS Investors favour 'vanilla' ETFs despite specialist launches Laura Dew | Money Management | 9 April 2021 Despite the influx of specialist exchange traded funds (ETFs), investors are still most keen on 'vanilla' products focused on Australian equities. To read more, please visit the Money Management 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

Weighing up the property boom By: Tony Kaye Residential property prices are booming not only in Australia but also around the world. What's the view for property investors and what factors should you consider before taking the leap? Read more

Asset allocations still hold the key By: Robin Bowerman Purchasing a home or investment property based on short-term market trends can dramatically alter asset allocations and have long lasting impacts on wealth. Here's why. Read more

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