| The trouble with trends. Investment custodians explained. July economic and markets update. | | View this email online |  |  | Welcome to this week's edition of Smart Investing.
Investing in trends has become a growing trend in its own right, and it has become easy to invest in them through an evolving universe of listed thematic investment products.
In this week's lead article we explore why choosing to invest in trends is potentially a risky strategy. That's backed by recent independent research showing products focused on trends on average lose about 25% of their market value on a risk-adjusted basis over their first five years.
In our second article we look into the important role of professional custodians in safeguarding the assets of millions of ordinary Australians. Did you know that custodians currently hold more than $4 trillion of investors' assets on behalf of Australian superannuation funds and asset managers including Vanguard?
We explain who investment custodians are, what they do, the key benefits to investors, and detail Vanguard's own custodian structure.
Lastly, we share our latest monthly global investment and economic forecasts, including our long-term outlook for Australian and international equities and bonds. | | | | | Troubling trends: Unwrapping thematic investments | | Investing in trends is a relatively new phenomenon. But trends can hide investment traps. | | Read article | | | | | | | Understanding the role of custodians | | Investment custodians have an important function to safeguard the assets of millions of Australian investors. | | Read article | | | | | | | Our investment and economic outlook, July 2023 | | Read our latest forecasts for investment returns and our region-by-region economic outlook. | | Read article | | | | | | | 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 | | | | 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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