Vanguard research suggests that one practical answer may lie in pairing traditional target-date funds with a modest allocation to deferred-income annuities (DIAs).
Access to private equity, private credit, private infrastructure, and private real estate assets can potentially improve long-term investment outcomes for participants.
Government statistics are invaluable in deciphering the state of the U.S. economy. But they don’t always tell the whole story.
We find that roughly two in five Americans are on track to meet their retirement spending needs. But retirement readiness is not black and white. The typical American will have a $5,000 annual spending shortfall in retirement. That means possibly needing to cut back on spending, work a year or two longer, tap into home equity, or lean on family.
Participants’ financial well-being is our top priority, and we know that they’re struggling with emergency savings, so we’re offering a way for participants to save with confidence—the Vanguard Cash Plus Account.
Whether in sports or financial markets, averages often grab headlines, but they can conceal as much as they reveal. Variation—including the dispersion of metrics like credit spreads for high-yield bonds—is the real story.
At Vanguard, we are always working to make our target-date funds (TDFs) better. That means regularly reviewing our glide-path design and diving into specific asset allocation topics to ensure that our strategies evolve with the market and continue to meet our clients' needs.
Investors face persistent behavioral challenges—such as inertia, present bias, and limited attention—that can quietly erode long-term financial outcomes. At Vanguard, we see these cognitive biases not as investor failings, but as opportunities to design digital experiences that are intuitive and easy to use, while nudging investors toward better decisions and stronger financial outcomes.
The investment case for private assets in DC plans hinges on choosing high-performing managers—specifically those in the top third of the performance spectrum, committing to long holding periods, and accepting the risk of underperformance over time.
Defined contribution (DC) plans form the backbone of retirement security for millions of Americans. And while stocks often steal the spotlight for their growth potential, bonds play a crucial role in managing risk, providing diversification, and delivering reliable income—especially as participants approach retirement.
Government shutdowns are not unprecedented. Although some volatility is possible, historically, there has been no clear relationship between U.S. government shutdowns and market returns.
Portfolio manager Lew Sanders has quietly built a legacy as one of the most influential value investors of the past 50 years.
Contrary to some popular stereotypes about young investors, the kids are all right. They typically save more and invest in age-appropriate, low-cost funds at higher rates than previous generations did at the same age, all while avoiding frequent trading or excessive risk in their portfolios.
As an industry leader, Vanguard cultivates a detailed understanding of defined contribution (DC) plans and their role in the U.S. retirement system.
Strategic versus tactical asset allocation is an age-old debate in the world of asset managers, fiduciaries, and everyday investors alike.
Vanguard's Investment Strategy Group explores the emotional and time-saving benefits that investors can derive from professional financial advice. In general, advised clients report getting emotional value as well as spending less time thinking about and dealing with their finances.
Bitcoin is not “appropriate” for long-term investors. Also, digital assets are more a speculation and less an investment.
Three themes are worth emphasizing as we reach the midpoint of 2025: tariffs, interest rates, and global diversification. We emphasize these themes even amid recent heightened geopolitical tensions.
Most investors would jump at the chance to add more money to their portfolio, but they often fail to consider the hidden costs associated with it.
The early-April announcement of a broad new round of tariffs against virtually all U.S. trading partners—followed by a pause for many of them—has triggered a tidal shift in the global economy. Uncertainty created by tariff negotiations, as well as burgeoning federal debt levels and other ongoing concerns, has far-reaching economic implications, leading us to reassess our 2025 outlook.
While the April 2 tariff announcements were more severe than anticipated, Vanguard’s active fixed income managers were well-prepared for the subsequent market reaction.
When constructing a target-date fund (TDF) glide path, providers have many decisions to make, such as what asset classes to include, when to include them, and how much to allocate to each.
While domestic politics can certainly influence asset prices, it is just one of many variables, and our research has shown it to be an inaccurate indicator of future returns. We caution investors against making changes to their portfolios based on political developments.
In the past decade, investors have started to factor in the cost of a product when they make decisions. Issuers have responded by lowering expense ratios, but there are other factors that can contribute to a product’s total cost. Tracking error and trading expense can also impact the total cost of a given ETF, for example.
Join the experts at Vanguard on June 20th at 2pm ET and learn all about the benefits of reducing all costs associated with an ETF.
Our actively managed equity funds that employ machine learning (ML)—and their shareholders—are starting to benefit, according to Cesar Orosco, CFA, and Scott Rodemer, CFA, of Vanguard’s Quantitative Equity Group (QEG). The group develops quantitative models that attempt to replicate what a good fundamental investor would do, but systematically and at scale.
Vanguard is an industry leader in offering muni bond ETFs that are highly tradeable, low cost, and have a strong track record of tight tracking error.
Rodney Comegys, Global Head of Vanguard Equity Index Group, offers actionable insights to investors on how to select active strategies that can help them achieve investment success.
The Vanguard Advisor Portfolio Analytics and Consulting® (PA&C) team engages with hundreds of advisors each year about portfolio construction topics, and it also has access to thousands of advisor portfolios through Vanguard’s digital investment analytics tools. In this webinar, Ryan Barksdale, CFA, CFP®, Vanguard’s head of PA&C, will discuss key portfolio construction trends across asset classes, sectors, and investment styles. He will explain common exposures and how portfolio positioning has evolved. Mr. Barksdale will highlight how international stocks can improve diversification and returns, and because advisors are currently worried about the threat of higher inflation, he will explain which strategies are likely to help portfolios if inflation rises meaningfully.
We’ve distilled our economists’ 2021 projections for the global economy into a quick 4-page summary. Get concise details on our expectations for the coming year, including:
