Asset Allocation

The Iran-Israel conflict and equity markets are now in sharp focus. As direct strikes escalated in June 2025, global financial markets responded immediately. Israel’s airstrikes on Iranian nuclear and energy infrastructure triggered retaliatory missile and drone attacks from Iran.

Smart beta strategies have endured a prolonged stretch of disappointing results, falling short of investor expectations. This article explores the underlying causes of that performance and outlines why the conditions ahead could be more favorable.

A growing body of evidence suggests the differences between private and public equity may be more a matter of perception than reality.

The calm before the storm is here – and the Fed knows it won’t last. This week’s Fed meeting is expected to be relatively straightforward.

This week’s market resilience in the face of rising geopolitical tensions underscores an important structural shift. The Israeli strikes and broader Middle East dynamics, while concerning, sparked only a modest reaction—a far cry from the volatility such events triggered in past decades.

Rampant uncertainty and ongoing market volatility in 2025 have done little to dampen the ETF industry, with innovative launches ongoing.

Tariff policy has clouded expectations for the second half of the year, but there are ways to navigate through the fog.

Fears of an impending recession may be fading, but economists are still expecting tepid GDP growth for the year.

Just one day after Prime Minister Shigeru Ishiba likened Japan’s debt situation to that of Greece, the country faced its weakest demand for 20-year bonds since 2012.

Industrial robotics is no longer a niche topic reserved for factory optimization—it is becoming a key lever in national strategies for productivity, labor substitution and supply chain resilience.

Global markets may be more rattled than ever, but advisors can count on closed-end funds to offer yield, portfolio diversity, and more.

In the history of technological progress, there's often a critical misreading. We think the leap is in the product—the engine, the chip, the app.

With tariff news providing constant equity market fluctuations, the case for bonds becomes more compelling. The added uncertainty also punctuates the need for an active management strategy, which one particular Vanguard ETF offers.

Financial markets have been experiencing some of their wildest trading days in history this year. Stock and bond prices have been moving in unison—an alarming scenario for investors and their advisors. With increased volatility, long-term investors might benefit from additional exposure to alternative strategies within their portfolio allocations.

Despite inflation worries, fiscal deficit concerns, and continued geopolitical conflict, equity markets posted strong returns in May on the back of easing tariff tensions, lower probability of recession, and better than expected US Q1 earnings.

The first half of 2025 has been driven by headlines that have caused volatility in both the stock and bond markets. While tariff negotiations have commanded the most attention, we are now pivoting to the federal budget deficit, which feels like a perpetual headline over the last 15 years.

Today, Vanguard released its newest bond fund, the Vanguard Multi-Sector Income Bond ETF (VGMS).

To anyone going through a breakup, just remember this lyric from Bernadette Peters: “If I’m patient the break will mend and one fine morning the hurt will end.”

With the world order in flux, investors can look to fortify portfolios by diversifying across global markets and capitalizing on attractive, high quality yields.

While the immediate path for tariffs may drift lower, the U.S. legislative branch is hammering out a tax and spending bill that seems to favor tax cuts over lower spending, reviving worries over the U.S. budget deficit and a growing debt burden that cannot be ignored.

The global economy is continually evolving due to inflation, interest rates, and geopolitics. How could these and other factors influence the major asset classes over the coming decade?

The U.S. economy and stock market face a confluence of challenges in the second half of the year, keeping the bar relatively (but not restrictively) high for outperformance.

Doug Drabik discusses fixed income market conditions and offers insight for bond investors.

In recent years, “buying the dip“ and more vulgar variations have often been equated to “dumb money” or retail investors, who are presumed to always make a mistake. However, as investors, we need to rethink how we view “buying the dip” because the whole goal of investing is to “buy low and sell high.”

Diversification of portfolios using international equities can reduce volatility and enhance risk-adjusted returns, especially given recent geopolitical shifts that decrease correlations between U.S. and international markets. Despite some investor skepticism, and as we discuss below, the benefits of international diversification can be significant and should be considered in investment strategies.

Small-cap stocks tend to offer greater growth potential than their large-cap peers, but those returns have yet to materialize consistently. What will it take to turn the tide?

The Fear Trade is what most Western investors are familiar with. It’s the flight to safety during times of uncertainty, driven by concerns over inflation, interest rates, geopolitical risk and more.

Investors may revisit international exposure in their portfolios amidst reduced market reactions to tariff announcements, uncertain U.S. policy and lagging U.S. stock performance.

Last week’s employment report was an important stabilizer for the markets. After concerning revisions and weak ADP numbers raised recession alarms, Friday’s payrolls print calmed fears on labor market deterioration.

Increasing investor preference for actively managed strategies continues in this year’s tumultuous environment. With active ETFs taking increasing market share, advisors and investors have ever-expanding choices when looking to augment existing passive exposures.

It would seem evident that most investors would understand that consumer spending drives economic growth, ultimately creating corporate earnings growth. Yet, despite this somewhat tautological statement, Wall Street appears to ignore this simple reality when forecasting forward earnings.

Systematic fixed-income investing is attracting increased attention but needs specialist skills and resources. Would your manager have what it takes?

Research trips are an integral component of our active, fundamental investment process. Our investment teams meet with different companies, attend conferences, and travel to new markets around the world, gaining insights for our clients and a deeper understanding of potential investments.

Rebounding demand from ETF investors and resilient buying from central banks and Asia retail have propelled gold prices to fresh records north of US$3,000/oz. Find out why we believe there is more room to run.

Bouts of volatility may continue in the second half of 2025 as bond market investors navigate evolving tariff policy, U.S. government debt, and economic uncertainty.

Kristofer Kraus, portfolio manager and co-lead of PIMCO’s asset-based finance business, charts the nuances behind the overall resilience of U.S. consumers – and explains how these insights shape lending and investment strategies.

Abstract SMID-cap investing offers stronger performance and lower volatility than small-caps alone. By using the Russell 2500 index, investors can retain top performers longer, reduce turnover, and enhance portfolio resilience and flexibility.

We remain underweight most developed market stocks as US tariff policy is still unclear but are more enthusiastic about emerging market assets.

Given the large pool of options available to fixed income investors in the bond market, the ideal option given the current economic uncertainty is still Treasuries. With that, Vanguard has three options worthy of consideration for any portfolio.

Private investments demand patience, but the rewards could be worth the wait.

Early signs of diminishing economic activity and inflation could be a harbinger for bond prices to rise. If so, consider taking advantage of a potential bond rally with a pair of ETFs from Vanguard.

Stocks rallied in May 2025 as trade tensions eased, but investor confidence remains fragile.

Investors may revisit international exposure in their portfolios amidst reduced market reactions to tariff announcements, uncertain U.S. policy and lagging U.S. stock performance.

Passive capitalization-weighted index funds now surpass active management in aggregate investor allocations.

Closed-end funds can offer stable income streams, but also have some benefits over ETFs when it comes to fund structure.

On the trade front, investor uncertainty eased for a short time as President Donald Trump’s “Liberation Day” tariffs seemed to lose traction. Several key developments contributed, including a 90-day tariff pause with China, the signing of a US-UK trade agreement and progress on negotiations with other partners, including Europe.

Market leadership is shifting and the once-dominant Magnificent 7 may no longer be so magnificent. Our latest report reveals why broader opportunities are emerging across sectors and regions, with quality, value, and growth converging in unexpected places.

The economic narrative took a decisive turn last week. A stunning collapse in the trade deficit suggests we could be looking at near 4% GDP growth in the second quarter—a massive upward revision from the consensus of 2%.

Treasuries have been the default go-to safe haven bonds during times of heavy market volatility. But with Moody’s recent downgrade, an opportunity for mortgage-backed securities (MBS) exists.

Buying stocks is always hard. Particularly during corrections. Or, near market peaks. Or, when stocks are falling. And when they are rising. Oh, buying stocks is also tricky when valuations are high. And when they are low. You get the point.

Q1 company earnings painted a picture of corporate health as markets entered a period of trade tumult. Fundamental Equities CIO Carrie King discusses the importance of staying invested amid volatility, and outlines where there may be opportunities for long-term, fundamental investors to take advantage of market nerves to add to positions within enduring investment themes.

This past week, news flow around policy came in hot and heavy, with President Trump’s ‘Big, Beautiful’ tax cut bill passing the House of Representatives, and Trump threatening 50% tariffs on the European Union (EU).

Amid a fair amount of market tumult, we wrote two months ago that the best course of action was to stay invested in roughly the same portfolios that we’ve had throughout, and let the market stabilize.

With the private equity market plagued by uncertainty and volatility, it's more important ever to locate compelling long-term opportunities.

Similar to the equity market’s response to the recently announced tariffs, the bond market responded with a widening of credit spreads. These spreads represent the difference in yield between a U.S. Treasury bond and other bonds of the same maturity but different credit quality.