Portfolio construction

With stocks and bonds well into negative territory, it’s tempting to call the traditional balanced portfolio dead. But we’ve been here before, says Roger Aliaga-Díaz, chief economist for the Americas and head of portfolio construction in Vanguard Investment Strategy Group.

At best, you may marginally improve returns through market timing. At worst, you could drastically lower returns.

In a short video, Vanguard’s global head of portfolio construction contrasts time-varying and tactical asset allocation.

The past year was brutal for the 60/40 portfolio. But it helps to maintain perspective, looking back and forward.

Negative convexity has rejoined duration and credit as central considerations in active muni investing.

U.S. stock outperformance over the last decade has likely sown the seeds for their underperformance over the coming one.

Having a credit tilt in the bond portion of a portfolio can enhance long-term returns.

Our head of portfolio construction addresses the ongoing 60/40 debate in InvestmentNews.

Higher inflation can mean higher return correlation. But that doesn’t offset the benefits of balanced investing.

Vanguard research looks at whether we should change the fixed income home bias in target-date funds.

Misconceptions abound about the 60/40 portfolio. We set the record straight on what it is and how to implement it.

Learn why the current fixed income environment is a positive for long-term retirement investors.

Commercial real estate is under stress because of higher interest rates and remote work. Should investors be worried?

Vanguard makes the case for the benefits of a fund of funds structure for suitable individual investors to access the private equity markets. 

Allocating to TIPS requires skill as it’s difficult to predict the path of inflation and interest rates.

Vanguard’s James J. Rowley, Jr., CFA, analyzes the impact of market environment on active performance.

Our framework for cash investing takes into account risk tolerance, investment horizon, and funding levels.

Vanguard’s CEO and CIO discuss potential effects of our similar return expectations for equity and bond performance.

Emerging markets bonds are positioned to outperform much of the rest of the fixed income market in 2024.

Following an extended period of relatively low interest rates, Vanguard examines the benefits of investing in private equity amid rising interest rates.

New research provides a foundational framework for considering index and active fund investing.

Read Vanguard's 2024 outlook on the private equity market, including our latest forecasts and perspectives.

High-flying stocks command investors’ attention. Do they affect market returns as much as the worst performers?

Our research quantifies the value of securities lending for the industry and at Vanguard.

Valuation-aware, time-varying asset allocations can help investors reach their return targets.

Our research defies conventional wisdom on the asset location of equity subclasses to optimize after-tax returns.

Vanguard research considers investors who may benefit from target portfolios using valuation-aware, time-varying return forecasts.

Vanguard research shows how to optimize after-tax returns through placement of equity subclasses across accounts. 

Best way to hedge a portfolio against inflation? Research suggests a method but not without its own risks.

U.S. value stocks are poised to outperform U.S. growth stocks over the next ten years. Kevin DiCiurcio, head of the Vanguard Capital Markets Model® research team, explains why.

In this excerpt from a January 10, 2023, webcast, Vanguard’s CEO talks about a bellwether asset mix.

Time-varying asset allocation can help build diversified, tax-efficient portfolios, Vanguard researchers say.

A Vanguard white paper looks at ways to tailor portfolios to address specific investor goals and preferences.

Vanguard shares our current views on best practices for U.S. private-sector pension plan asset allocation. We highlight the value of identifying three targets—the return-seeking asset allocation, interest rate hedge ratio, and credit spread hedge ratio—that can be the foundation for a robust, customized portfolio construction process.

A new Vanguard research paper sheds light on how investors’ health state can affect their asset allocation and consumption in retirement.