| The important role of international shares. Inside the sophisticated investor status. How cash has underperformed. | | View this email online |  |  | Welcome to this week's edition of Smart Investing.
Australian Bureau of Statistics data covering the four months to the end of April shows more than 5 million Australians have travelled overseas so far this year.
Yet, when it comes to investing, the vast majority of Australians stay on home soil. This week we look at the long-term impact of home bias on investment performance and portfolio volatility, comparing Australian and international share market returns over time.
In our second article we take a look at 'sophisticated investors', which is a legal classification that can open investment doors which are off-limits to retail investors. What does it take to qualify, what are the benefits and, most importantly, what are the potential risks?
Lastly, in light of the ongoing volatility on financial markets, our article Charting cash against a 60/40 portfolio is definitely worth a read. It shows that even having money sitting in cash for relatively short periods of time can be costly. Our analysis shows there's a high probability cash will underperform a broadly diversified portfolio invested across shares and fixed income. | | | | | What an Australian bias can cost a portfolio | | Here's how a broadly diversified portfolio with international exposure ultimately produces more stable returns. | | Read article | | | | | | | The pros and cons of being a sophisticated investor | | Many Australians now technically qualify to be certified as a sophisticated investor, but what are the benefits and risks? | | Read article | | | | | | | Charting cash against a 60/40 portfolio | | The power of diversification. Why moving to cash in a panic rarely pays off. | | Read article | | | | | | | Banking on the Age Pension | | The ranks of Australians receiving the Age Pension are increasing. It's important to understand who is eligible and its role in retirement planning. | | Read article | | | | | | | Australian ETF assets continue to rise | | Cash inflows into ASX-listed ETFs rose over April despite shorter trading from Easter and Anzac Day. | | Read article | | | | Vanguard and its employees wish to acknowledge the Traditional Custodians of Country throughout Australia where we operate our business. We recognise their connection to the land, water and culture and wish to pay our respects to their Elders past, present and emerging.
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