| Hi Aris, Welcome to this week's edition of Smart Investing. The size of Australia's exchange traded funds industry is continuing to grow, both in terms of assets under management and the number of ETF products. So, where are investors concentrating? In our lead article, Vanguard's Senior Personal Finance Writer, Tony Kaye, points out that more than 85% of the total investor inflows into ETFs are going to index-tracking (passive) funds that aim to capture the broad returns from markets. Only a small percentage of inflows are going to active funds that aim to outperform market returns, and even then there's a catch. Read the article to find out more. In our second article, Vanguard's Global Chief Economist, Joe Davis, looks into the massive economic potential from artificial intelligence (AI). The big question for investors now is whether the hype around AI has overstretched current equity valuations, particularly in the U.S, and when the real payoff from AI will actually come. Lastly, our global economics team provides its latest forecasts for interest rates, inflation, employment and financial markets in Australia, the United States, China, the Euro area, the United Kingdom, emerging markets, and Canada. We are currently looking for media case studies of people who had planned to retire early, but have had to keeping working for financial reasons, and also for people who were forced to retire earlier than they had intended to. If you are happy to share your experience in the media, please contact us by sending an email to corpcommsaustralia@vanguard.com.
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