The cost of timing markets | Going passive and active | Handling Vanguard weather

3 years since the COVID crash. A passive and active strategy. Bank closures and bond funds View this email online Welcome to this week's edition of Smart Investing. The COVID market crash has become a distant memory for most investors. Some investors exited the Australian share market back then, either for a short period of time or permanently, and fled to cash. Our lead article uses two examples to calculate the financial cost from making that decision at the time, and highlights the danger of trying to time markets. We also compare the returns from index funds in 2022 with the performance of Australian active fund managers. See how they did, and read why having a portfolio with passive and active holdings can be a powerful strategy. Lastly, we give our perspective on recent bank events and explain how our active bond portfolios fared afterwards, and how they're positioned to handle 'Vanguard weather'. Our mission at Vanguard is to take a stand for all investors, to treat them fairly, and to give them the best chance of investment success. LATEST INSIGHTS Counting the cost of timing the market Three years on from the COVID crash, we show what the financial cost could have been from selling out of the share market in 2020. Read article Investing on the share market: Passive or active? Index funds continue to outperform most, but not all, active managers over time. Here's a way both could be used in a portfolio. Read article Bank closures' impact on fixed income markets Offshore banking events recently caused havoc on bond markets. We explain how our active bond funds have been positioned to handle 'Vanguard weather'. Read article In case you missed it Our investment and economic forecasts, March 2023 Our latest forecasts for investment returns and our region-by-region outlook. Read article Devil in the detail on super changes Proposed changes to superannuation have the potential to reshape the retirement landscape. The objective of super remains the missing ingredient in the mix. Read article Connect with Us Unsubscribe 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) is the product issuer. 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. © 2023 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

Investing in high inflation conditions | The trade-offs for stability | Our latest forecasts

Inflation hedges explained. Striking a delicate balance. Comparing funds and fees. View this email online Welcome to this week's edition of Smart Investing. You may be wondering if there are any investment levers you can pull to protect your portfolio from high inflation. There are, and we explain some of them in our lead article. But, if you are considering making portfolio changes in response to inflation, we also point out the reasons why you should be careful. Our second item this week is a short video about the trade-offs central banks around the world are having to make to smooth out economic conditions. Watch Vanguard's global chief economist, Joe Davis, explain the challenges. Lastly, read the latest monthly global investment and economic forecasts from Vanguard's Investment and Strategy Group including our outlooks for Australian and international equities and bonds. Read more. Our mission at Vanguard is to take a stand for all investors, to treat them fairly, and to give them the best chance of investment success. LATEST INSIGHTS Investing in high inflation conditions There are investing strategies that can protect your portfolio from inflation, but it's important to keep a long-term perspective. Read article U.S. Federal Reserve: Striking a delicate balance In this short video, Joe Davis, Vanguard's global chief economist, discusses the trade-offs facing the Fed in its efforts to achieve price stability. Watch video Our investment and economic forecasts, March 2023 Our latest forecasts for investment returns and our region-by-region outlook. Read article In case you missed it Devil in the detail on super changes Proposed changes to superannuation have the potential to reshape the retirement landscape. The objective of super remains the missing ingredient in the mix. Read article Perspectives on banking developments and volatility Bringing inflation down was never going to be easy and is likely to be met with an economic slowdown. But it's important to stick to your long-term plan. Watch video Connect with Us Unsubscribe 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) is the product issuer. 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. © 2023 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

The missing super ingredient | Bank failures and market volatility | ETFs hit $136bn

The missing super ingredient. Assessing current market volatility. A new ETFs record View this email online Welcome to this week's edition of Smart Investing. More changes to superannuation legislation are on the cards with the Federal Government proposing a $3 million cap on individual balances. While most people will be unaffected, any changes could have longer-term repercussions. This underlines the value of finally enshrining an objective of superannuation into law. Read more in our lead article. This month has also seen a new bout of volatility on financial markets following two prominent bank failures in the United States. Vanguard's global chief economist, Joe Davis, discusses events in the financial sector and shares his views on inflation and central bank policy. Watch his short video. Lastly, Australia's exchange traded funds (ETFs) sector continued to gain ground in February, with total assets under management exceeding $136 billion. Read about the key ETF trends and where investor inflows are being concentrated. Our mission is to take a stand for all investors, to treat them fairly, and to give them the best chance of investment success. LATEST INSIGHTS Devil in the detail on super changes Proposed changes to superannuation have the potential to reshape the retirement landscape. The objective of super remains the missing ingredient in the mix. Read article Perspectives on banking developments and volatility Bringing inflation down was never going to be easy and is likely to be met with an economic slowdown. But it's important to stick to your long-term plan. Watch video Investor inflows take the ETFs sector higher in February Australia's ETFs sector continued to gain ground in February. Investor inflows over the first two months of 2023 have exceeded $1.67 billion. Read article In case you missed it Look beyond the latest dividend returns The latest earning season proves that company dividend payouts are choppy. Casting your net wider will help capture broader income returns. Read article How self-managed super funds are investing Self-managed super funds now manage more than $880 billion in assets, but where exactly are they investing and what can other investors learn from them? Read article Connect with Us Unsubscribe 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) is the product issuer. 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. © 2023 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