New research underscores investors are aligned with Vanguard’s time-tested principles of diversification and discipline
VALLEY FORGE, PA (December 3, 2020)—Building upon decades of thought leadership and investor advocacy, Vanguard introduced How America Invests, a comprehensive analysis of Vanguard investor behavior. The compendium examines the investing activities of more than five million Vanguard retail households from 2015 through the first half of 2020, and exemplifies the sustained discipline, discretion, and long-term orientation demonstrated by Vanguard investors.
Findings from the report illustrate how Vanguard investors, across all generations, wealth segments, and account types demonstrate a similar diligence to balancing risk and reward, avoid common trading pitfalls, gravitate to broadly diversified funds, and maintain a long-term outlook. Additionally, the report uncovers emerging trends, such as the increasing prevalence of ETFs.
Key insights include:
“Vanguard is unwaveringly focused on improving investor outcomes, and the insights featured in How America Invests will help us continue to refine and enhance our investment products and services, client education, advice offerings, and advisor resources,” said Colin Kelton, Vanguard’s Chief Marketing Officer. “Encouragingly, but not surprisingly, the report also reinforces our clients’ philosophical alignment with Vanguard’s long-term approach to investing. Their focus on goals, balance, cost, and discipline—the core pillars of Vanguard’s investment principles—pays dividends in any market environment, but proves especially valuable in times of volatility like we’ve experienced this year.”
Vanguard has leveraged decades of experience serving the individual investor and produced thousands of pieces of industry-leading research and insights. The introduction of How America Invests augments the firm’s extensive library of investor behavior research, including How America Saves, Vanguard’s seminal defined contribution (DC) report that has provided key insights on the DC landscape and plan participant behavior for two decades.
Additionally, the firm has a rich history of data-driven research focused on topics addressing the behavioral and psychological aspects of investing. Of note is a recent analysis illustrating the value of taking a long view when thinking about market shocks and portfolio wealth, and how Vanguard investors’ propensity for balanced portfolios was a tailwind during the volatile first quarter of 2020.
Vanguard is one of the world’s largest investment management companies. As of October 31, 2020, Vanguard managed $6.3 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers more than 421 funds to its more than 30 million investors worldwide. For more information, visit vanguard.com.
1 Vanguard.com, Three reasons not to move your portfolio to cash (March 2020).
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Vanguard Marketing Corporation, Distributor of the Vanguard Funds. U.S. Patent Nos. 6,879,964; 7,337,138; 7,720,749; 7,925,573; 8,090,646; 8,417,623; and 8,626,636.