Investing Money

Tuesday, June 16, 2020

[Smart Investing] Investors and ETFs prove their resilience in crisis

Investments and personal finance insights from Vanguard Australia

17 June 2020

Hi everyone,

In this week’s Smart Investing, we discuss the resilience of investors during recent market volatility and how they have used ETFs to take advantage of lower share prices and as a means to access diversified portfolios of growth assets at low cost.

Vanguard Senior Financial Writer Tony Kaye also takes a closer look at interest rates and how their recent moves are indicative of current economic events and expectations around economic growth and consumer demand.

Lastly, we revisit why it is important to recognise cognitive biases when making investment decisions and discuss a few ways you can outsmart them.

As always, feel free to email us with your questions or feedback.

Regards,

Robin Bowerman
Head of Corporate Affairs
Vanguard Australia

Investors and ETFs prove their resilience in crisis

By: Robin Bowerman

The recent market volatility brought on by COVID-19 has provided a comprehensive market test for the reliability of ETFs. The good news is that both investors and ETFs seem to have passed with flying colours.

Interest rates are on the move

By: Tony Kaye

While the Reserve Bank of Australia won't be lifting its cash rate anytime soon, there's been plenty happening with interest rates behind the scenes.

Ways to outsmart your cognitive biases

By: Robin Bowerman

As markets continue to be gripped by uncertainty, we remind you of the types of behavioural biases that could lead to potentially risky investment behaviour, and how you can avoid them.

VANGUARD IN THE NEWS

2020 MAX Award winners named

Jamie Williamson | Financial Standard | 12 June 2020

The most outstanding efforts in financial services marketing, advertising and sales were recognised in the 2020 Financial Standard MAX Awards, presented via virtual ceremony last night. Vanguard and Zurich took home two gongs each with Vanguard awarded Integrated Campaign of the Year and Website of the Year, and Zurich taking out Marketing Team of the Year and Print Campaign of the Year - Trade

To read more, please visit the Financial Standard website.

Please note the link above will show a copy of the article (where freely available), or the publisher's website if a subscription is required.

IN CASE YOU MISSED IT

A super catch-up plan

By: Tony Kaye

In the current environment, the need for having a long-term financial plan that incorporates having adequate retirement savings in place is arguably more than important than ever.

SMSF liquidity lessons learnt from the pandemic

By: Robin Bowerman

Liquidity is one of those things that investors – both professional and individual – can take for granted particularly after an extended period of relatively strong growth in investment markets and in Australia's case, no economic recession for 29 years.

CLIENT SERVICES

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Tuesday, June 9, 2020

[Smart Investing] Choosing an index fund: it's more than just expense ratio

Investments and personal finance insights from Vanguard Australia

10 June 2020

Hi everyone,

First and foremost, we would like to acknowledge the series of tragic events that have recently unfolded, with the deaths of George Floyd, Breonna Taylor and Ahmaud Arbery and the subsequent protests both in the United States and globally. As a company, we are troubled by the systematic issues that have led to such injustice. We at Vanguard condemn any form of racism, xenophobia or prejudice, and will continue to strive every day to make Vanguard and our wider community more diverse and inclusive. You can read our perspective on these recent events and details of our ongoing efforts to address racial injustice and inequity here.

In this week's Smart Investing, Vanguard's Head of Equity Indexing for Asia Pacific Duncan Burns has written a piece on why prudent investment selection cannot be achieved by focusing on cost alone. When searching for and selecting between index investment options, investors should use a decision-making framework that takes into account a range of factors.

Vanguard Senior Financial Writer Tony Kaye also takes a look at the recent market rebound and how quickly share markets can move, hence why trying to time equity transaction decisions around unknown variables is generally a dangerous tactic.

Lastly, we discuss Vanguard's forecast for long-term market returns and how shares may perform better over the next decade than we had forecast at the end of last year, while fixed income returns may be even more muted.

As always, feel free to email us with your questions or feedback.

Regards,

Robin Bowerman
Head of Corporate Affairs
Vanguard Australia

Choosing an index fund: it's more than just expense ratio

By: Duncan Burns

Since the first index fund was launched some 45 years ago, millions of investors across the world have taken advantage of this easy-to-implement investment vehicle that offers transparency, diversification, low-costs and tax efficiency.

The market rebound you may have missed

By: Tony Kaye

If you blinked in late March, you may have missed it. But that was the time when global equity markets started to reclaim lost ground.

Beyond the pandemic: What to expect from shares, bonds

The COVID-19 pandemic has drastically altered the economic landscape, and with it our forecasts for long-term market returns.

VANGUARD IN THE NEWS

3 ways COVID-19 changed the ETF market

Emma Rapaport | Morningstar | 4 June 2020

ETF investors were taken on a rollercoaster ride in the March 2020 quarter as markets reacted to the worsening coronavirus outbreak. Investors took advantage of the equity price free-fall in March to boost their allocation to Australian equities. A dash to safety also attracted inflows to products with exposure to physical gold.

Vanguard Australian Shares ETF (VAS) saw the highest net inflows over the quarter of $713 million, outstripping the next highest ETFS Physical Gold ETC (GOLD) at $280 million.

To read more, please visit the Morningstar website.

Please note the link above will show a copy of the article (where freely available), or the publisher's website if a subscription is required.