ATO targets SMSF breaches | Why Warren Buffett remains an ETFs fan | Our latest investment and economic outlook

ATO targets SMSF breaches. Why Buffett likes ETFs. Our latest outlook

View this email online Hi Aris, Welcome to this week's edition of Smart Investing. Australian Taxation Office Deputy Commissioner, Emma Rosenzweig, has issued a warning to SMSF trustees that those in breach of superannuation regulations face enforcement action, including penalties and disqualification. Our lead article highlights four SMSF breaches that are very high on the ATO's radar, as told by the Deputy Commissioner to attendees at last week's SMSF Association 2025 National Congress. Meanwhile, Warren Buffett, widely regarded as one of the world's most successful investors, has just released his 2025 letter to Berkshire Hathaway shareholders, telling them that the vast majority of their money remains in direct equities. But Buffett remains a huge advocate for index funds, which he believes are the most sensible investment for the majority of investors. Read our second article to find out why. In our third article, Vanguard's 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. Lastly, thank you to those who responded to our call-out last week for people who had used the government's home downsizer measure to top up their retirement savings. If you are willing to share your story, send an email to corpcommsaustralia@vanguard.com with your contact details.  LATEST INSIGHTS Four SMSF breaches high on the ATO’s radar The Tax Office is actively targeting SMSF trustees over a range of super breaches. Read article Why Warren Buffett remains a big fan of ETFs The Oracle of Omaha says low-cost index funds are still best for most investors. Read article Our investment and economic outlook, February 2025 Our latest forecasts for investment returns and region-by-region economic outlook. Read article In case you missed it Uncertainty in markets can also mean opportunity Pending tariffs might mean greater risk in the markets, but also opportunities. Learn more Home is where the super is for many Australians More Australians are upsizing their super by downsizing their home. Learn more The end of hybrids. What that means for investors Why high-quality bonds are a logical alternative to hybrid securities. Read article Connect with Us Unsubscribe. When you unsubscribe via the link, you will be unsubscribing to all Vanguard Australia marketing emails. 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. Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) (VIA) is the product issuer and operator of Vanguard Personal Investor. Vanguard Super Pty Ltd (ABN 73 643 614 386 / AFS Licence 526270) (the Trustee) is the trustee and product issuer of Vanguard Super (ABN 27 923 449 966). The Trustee has contracted with VIA to provide some services for Vanguard Super. Any general advice is provided by VIA. The Trustee and VIA are both wholly owned subsidiaries of The Vanguard Group, Inc (collectively, "Vanguard"). We have not taken yours or your clients‘ circumstances into account when preparing this email so it may not be applicable to the particular situation you are considering. You should consider yours and your clients‘ circumstances, and our Product Disclosure Statement (PDS) before making any investment decision or recommendation. Distributors of our products must consider our Target Market Determinations ("TMDs") which describe the investors for whom the product would likely be appropriate and consistent with their objectives, financial situation and needs. You can access our PDSs and TMDs at www.vanguard.com.au or by calling 1300 655 101. Past performance is not an indication of future performance. Our electronic publications are prepared in good faith and we accept no liability for any errors or omissions. Not all articles are prepared by Vanguard so they may not represent our views and opinions. Vanguard Investments Australia Limited is in no way responsible for the content or loss resulting from use of any website owned by a third party that may be linked to this email via a hyperlink. © 2025 Vanguard Investments Australia Ltd. All rights reserved. Use of cookies If you click through to the vanguard.com.au website from this email, a cookie may be placed on your computer to enable Vanguard or our third party service providers to collect information about your use of the vanguard.com.au website to support website performance, enhance site navigation, improve our web design and functionality and tailor our communications to you regarding our products and services. The information collected by Vanguard or our service providers does not include personal information that could be used to identify you such as your name, address, telephone number, email address, or account information. Unless you have adjusted your browser settings so that it will refuse cookies, our system may set cookies when you visit the site. You may choose to remove or disable cookies via your browser. Google Analytics uses data when you access the Vanguard website. For more information, see "HOW GOOGLE USES INFORMATION FROM SITES OR APPS THAT USE OUR SERVICES," located at https://policies.google.com/technologies/partner-sites. You can opt out of being tracked by Google Analytics at the following location: https://tools.google.com/dlpage/gaoptout . To learn more about how Vanguard uses cookies, please visit the Vanguard Cookie Policy. By using our website, you consent to the use of cookies as described above. Terms and conditions of use | Disclaimers| Privacy policy| Cookie policy

What pending tariffs mean for markets | Home downsizing for super takes off | The end of hybrids

What tariffs mean for markets. Home downsizing for super. Hybrids end.

View this email online Hi Aris, Welcome to this week's edition of Smart Investing. The prospect of high tariffs being imposed by the United States on foreign goods from many countries, including Australia, has recently rattled financial markets. Our lead article this week is by Vanguard's President and Chief Investment Officer, Greg Davis, who says it's important to put the uncertainty and volatility around the proposed tariffs into perspective and to recognise the opportunities to either mitigate risk or generate alpha returns. In our second article, Senior Personal Finance Writer, Tony Kaye, examines Australian Taxation Office data that shows the number of Australians who have taken advantage of the government's home downsizer measure over time to inject more capital into their superannuation. It's evident a growing number of Australians are using the proceeds from selling their home to top up their retirement savings.  We'd like to hear from you if you have used the home downsizer measure to top up your retirement savings. Send an email to corpcommsaustralia@vanguard.com with your contact details to tell us your story. Lastly, what does the impending end of hybrid securities mean for investors? APRA recently announced it wants issuers such as banks to switch to cheaper and more reliable forms of regulatory capital. Our article explains the next steps, and why high-quality bonds are a logical alternative to hybrids. LATEST INSIGHTS Uncertainty in markets can also mean opportunity Pending tariffs might mean greater risk in the markets, but also opportunities. Read article Home is where the super is for many Australians More Australians are upsizing their super by downsizing their home. Read article The end of hybrids. What that means for investors Why high-quality bonds are a logical alternative to hybrid securities. Read article In case you missed it Look at the bigger equity picture: AI beyond tech A broader strategy to capture growth and productivity increases may be beneficial. Learn more Active investing? Don’t overlook value in the age of AI What artificial intelligence means for the future of active equity performance. Learn more Fixed income and AI: Active risk-taking amid higher rates What do higher interest rates mean for fixed income alongside AI? Read article Connect with Us Unsubscribe. When you unsubscribe via the link, you will be unsubscribing to all Vanguard Australia marketing emails. 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. Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) (VIA) is the product issuer and operator of Vanguard Personal Investor. Vanguard Super Pty Ltd (ABN 73 643 614 386 / AFS Licence 526270) (the Trustee) is the trustee and product issuer of Vanguard Super (ABN 27 923 449 966). The Trustee has contracted with VIA to provide some services for Vanguard Super. Any general advice is provided by VIA. The Trustee and VIA are both wholly owned subsidiaries of The Vanguard Group, Inc (collectively, "Vanguard"). We have not taken yours or your clients‘ circumstances into account when preparing this email so it may not be applicable to the particular situation you are considering. You should consider yours and your clients‘ circumstances, and our Product Disclosure Statement (PDS) before making any investment decision or recommendation. Distributors of our products must consider our Target Market Determinations ("TMDs") which describe the investors for whom the product would likely be appropriate and consistent with their objectives, financial situation and needs. You can access our PDSs and TMDs at www.vanguard.com.au or by calling 1300 655 101. Past performance is not an indication of future performance. Our electronic publications are prepared in good faith and we accept no liability for any errors or omissions. Not all articles are prepared by Vanguard so they may not represent our views and opinions. Vanguard Investments Australia Limited is in no way responsible for the content or loss resulting from use of any website owned by a third party that may be linked to this email via a hyperlink. © 2025 Vanguard Investments Australia Ltd. All rights reserved. Use of cookies If you click through to the vanguard.com.au website from this email, a cookie may be placed on your computer to enable Vanguard or our third party service providers to collect information about your use of the vanguard.com.au website to support website performance, enhance site navigation, improve our web design and functionality and tailor our communications to you regarding our products and services. The information collected by Vanguard or our service providers does not include personal information that could be used to identify you such as your name, address, telephone number, email address, or account information. Unless you have adjusted your browser settings so that it will refuse cookies, our system may set cookies when you visit the site. You may choose to remove or disable cookies via your browser. Google Analytics uses data when you access the Vanguard website. For more information, see "HOW GOOGLE USES INFORMATION FROM SITES OR APPS THAT USE OUR SERVICES," located at https://policies.google.com/technologies/partner-sites. You can opt out of being tracked by Google Analytics at the following location: https://tools.google.com/dlpage/gaoptout . To learn more about how Vanguard uses cookies, please visit the Vanguard Cookie Policy. By using our website, you consent to the use of cookies as described above. Terms and conditions of use | Disclaimers| Privacy policy| Cookie policy

AI boom? Diversify beyond tech stocks | Higher rates favour active fixed income | Don't overlook value

AI: Diversify beyond tech. Active fixed income. Don't overlook value.

View this email online Hi Aris, Welcome to this week's edition of Smart Investing. In our three articles this week, Vanguard's Global Chief Economist and Head of Investment Strategy Group, Joe Davis, focuses on different aspects of the megatrends shaping the future of global economies and markets, including the continued rise of artificial intelligence (AI). Our lead article discusses why it may be beneficial for investors to look beyond technology stocks, particularly in the context of U.S. equity markets, to capture broader potential growth and productivity increases. Our second article explains why the future may be ripe for active risk-taking in the fixed income market, irrespective of developments in AI. Whether AI delivers or disappoints, we are likely to see a higher rate environment. Lastly, our third article finds that the nature of active management outperformance will depend on how AI ultimately plays out. If AI disappoints, a value tilt may prove more defensive than growth due to current tech stock valuations.  LATEST INSIGHTS Look at the bigger equity picture: AI beyond tech A broader strategy to capture growth and productivity increases may be beneficial. Read article Fixed income and AI: Active risk-taking amid higher rates What do higher interest rates mean for fixed income alongside AI? Read article Active investing? Don’t overlook value in the age of AI What artificial intelligence means for the future of active equity performance. Read article In case you missed it How $10,000 performed across eight asset classes in 2024 Another year of varied returns demonstrates the importance of diversification. Learn more Have you checked your portfolio today? Rather than worrying about day-to-day price movements, focus here instead. Learn more A perspective on tech sector volatility Tech shares fell recently as investors questioned the value of established players. Read article Connect with Us Unsubscribe. When you unsubscribe via the link, you will be unsubscribing to all Vanguard Australia marketing emails. 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. Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) (VIA) is the product issuer and operator of Vanguard Personal Investor. Vanguard Super Pty Ltd (ABN 73 643 614 386 / AFS Licence 526270) (the Trustee) is the trustee and product issuer of Vanguard Super (ABN 27 923 449 966). The Trustee has contracted with VIA to provide some services for Vanguard Super. Any general advice is provided by VIA. The Trustee and VIA are both wholly owned subsidiaries of The Vanguard Group, Inc (collectively, "Vanguard"). We have not taken yours or your clients‘ circumstances into account when preparing this email so it may not be applicable to the particular situation you are considering. You should consider yours and your clients‘ circumstances, and our Product Disclosure Statement (PDS) before making any investment decision or recommendation. Distributors of our products must consider our Target Market Determinations ("TMDs") which describe the investors for whom the product would likely be appropriate and consistent with their objectives, financial situation and needs. You can access our PDSs and TMDs at www.vanguard.com.au or by calling 1300 655 101. Past performance is not an indication of future performance. Our electronic publications are prepared in good faith and we accept no liability for any errors or omissions. Not all articles are prepared by Vanguard so they may not represent our views and opinions. Vanguard Investments Australia Limited is in no way responsible for the content or loss resulting from use of any website owned by a third party that may be linked to this email via a hyperlink. © 2025 Vanguard Investments Australia Ltd. All rights reserved. Use of cookies If you click through to the vanguard.com.au website from this email, a cookie may be placed on your computer to enable Vanguard or our third party service providers to collect information about your use of the vanguard.com.au website to support website performance, enhance site navigation, improve our web design and functionality and tailor our communications to you regarding our products and services. The information collected by Vanguard or our service providers does not include personal information that could be used to identify you such as your name, address, telephone number, email address, or account information. Unless you have adjusted your browser settings so that it will refuse cookies, our system may set cookies when you visit the site. You may choose to remove or disable cookies via your browser. Google Analytics uses data when you access the Vanguard website. For more information, see "HOW GOOGLE USES INFORMATION FROM SITES OR APPS THAT USE OUR SERVICES," located at https://policies.google.com/technologies/partner-sites. You can opt out of being tracked by Google Analytics at the following location: https://tools.google.com/dlpage/gaoptout . To learn more about how Vanguard uses cookies, please visit the Vanguard Cookie Policy. By using our website, you consent to the use of cookies as described above. Terms and conditions of use | Disclaimers| Privacy policy| Cookie policy