Welcome to this week's edition of Smart Investing.
It's 25 years since Vanguard's first index fund was launched in Australia. Today index-tracking funds account for more than $700 billion of assets under management in Australia – which is around 20% of all investable Australian assets.
In our lead article we take a closer look at the Australian index fund phenomenon and their performance against Australian actively managed funds over time.
Our second article covers the ongoing surge in investor cash inflows into Australian-listed fixed income ETFs. In fact, more investor money was directed into ETFs that invest in bonds than into equity ETFs over the first half 2023. The hunt for investment yield is continuing at a record pace.
Lastly, we look at some ways investors are using ETFs in their portfolios, depending on their investment goals and portfolio strategy. | | | | | The case for indexing is still compelling after 25 years | | From a standing start in 1998, index funds now account for $700 billion of assets under management in Australia. That's mainly to do with cost and performance. | | Read article | | | | | | | Fixed income ETF inflows surge over first half | | Fixed income ETF inflows are running at a record pace as investors focus on higher interest rate returns and offsetting their exposure to share markets. | | Read article | | | | | | | Ways to use ETFs in your portfolio | | There are many ways investors can incorporate ETFs into their portfolios, including as the stable core or as diversifiers. | | Read article | | | | | | | Our midyear Asia-Pacific outlook | | China's and Australia's economies are in some ways on opposite trajectories. | | Read article | | | | | | | Returns rebound in 2022-23 | | Investment markets rebounded in 2022-23. But it's important to understand that asset class returns vary from year to year. | | 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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