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☆ Americans are about to start losing their jobs - and that will scupper the Fed's dream no-recession scenario, Vanguard top economist says
▼ + stars: | 2023-07-31 | by ( George Glover | ) www.businessinsider.com time to read: +2 min

The Federal Reserve said last week that it no longer expects a recession in the US. But unemployment will spike above 4% over the next year, according to Vanguard's top economist Joe Davis. "By that metric, it actually is a recession – because you have very modest job losses," he said. "Well, historically, that has been 100% associated with a recession – now, not necessarily deep in magnitude, but a recession." The central bank has raised interest rates from near-zero to over 5% since March 2022 in a bid to tame soaring prices but pledged to take a data-dependent approach to tightening last week.

Persons: Joe Davis, Davis, Bloomberg's, they'll, there'll Organizations: Federal Reserve, Service, Privacy, Fed, Bloomberg Locations: Wall, Silicon

☆ Investors can get a 7% yield with this 'hidden gem' bond fund
▼ + stars: | 2023-06-29 | by ( Michelle Fox | ) www.cnbc.com time to read: +2 min

Vanguard's Emerging Markets Bond fund (VEMBX) is a "hidden gem" and Vanguard's best foreign bond fund, according to Jeff DeMaso, founder and editor of the newsletter "The Independent Vanguard Adviser." "It's a well-run emerging markets bond fund that has topped its index (and the Morningstar peer group)," DeMaso said. The actively managed fund was up 43% from April 2016 through May 2023, compared with an 11% return for Vanguard's Emerging Markets Government Bond Index Fund (VGAVX) during the same time frame, according to DeMaso's calculations. The VGAVX seeks to track the performance of the Bloomberg USD Emerging Markets Government RIC Capped Index. Not only does VEMBX fly under the radar, but it has a stellar portfolio manager in Daniel Shaykevich, DeMaso said.

Persons: Jeff DeMaso, Morningstar, DeMaso, Daniel Shaykevich, Shaykevich Organizations: Vanguard's, Independent Vanguard, SEC, Morningstar, Vanguard's Emerging, Government, Index, Bloomberg, Markets Government RIC, Vanguard, BlackRock Locations: United States, Peru, Saudi Arabia, Columbia, Persian, Saharan Africa

☆ The co-leader of an AI-driven quant fund shares 2 stocks his model is betting the most on right now — and a simple way individual investors can use AI technology to pick stocks
▼ + stars: | 2023-06-22 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

An easy way to harness the power of AI quant models is to look at top holdings of ETFs, he said. But it's a tall task for individual investors — let alone institutions — to develop AI models for stock picking, Oh said. Oh said that the Qraft's momentum fund's top two holdings right now are Amazon (AMZN) and Meta (META). While it was the model that picked Amazon and Meta, Oh said they're solid fundamental plays. As for Meta, Oh said it's well-positioned for the AI boom as is one of the leaders in the space.

Persons: Francis Oh, —, ChatGPT, I'm, Google's Bard, Oh Organizations: Vanguard's Hong, Qraft Technologies, Apple, Nvidia, AI, Equity, BTD, Fund, Vertex Pharmaceuticals, Gamestop, Dow, Industrial, SolarEdge Technologies, Dow Inc, Enphase Energy, Meta Locations: Asia, Pacific, Vanguard's, Vanguard's Hong Kong

☆ This tax-exempt fund with a yield surpassing 4% is 'one of the best,' Morningstar says
▼ + stars: | 2023-06-22 | by ( Michelle Fox | ) www.cnbc.com time to read: +5 min

The fund invests at least 80% of its assets in investment-grade municipal bonds, and only up to 20% in those below investment grade. Municipal bonds are issued by government entities, such as a city or state, and raise money for public projects, such as building roads or schools. VWAHX 1Y mountain Vanguard High-Yield Tax-Exempt fund The fund, which trades under the ticker VWAHX, currently has a 30-day SEC yield exceeding 4%. "We are not risk averse, but we are very opportunistic about how we apply our risk," Kiselak explained. Opportunity in health care Health-care muni bonds make up about 15% of the fund, Kiselak said.

Persons: Morningstar, Mat Kiselak, —, Bond, Elizabeth Templeton, VWAHX, Kiselak, Jeff DeMaso, DeMaso, He's Organizations: SEC, Morningstar ., Vanguard, Independent Vanguard, Puerto Locations: Puerto Rico

☆ The year is half over. Here are three considerations to make sure your portfolio is on track
▼ + stars: | 2023-06-13 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Rebalance your portfolio Tech's remarkable bounce in 2023 could result in a significant portfolio tilt toward that sector — and an overconcentration that could hurt in the event there's a downturn. That means it's time to trim down a few of those oversized positions and make sure your asset allocation is properly reflecting your goals. Check in with cash Cash is another asset that requires your attention, especially in an era when investors have a host of options of where keep those funds. Cash you don't need for many years can go right back into your stock portfolio so you can keep ahead of inflation, Pearce said. "Make sure you have an appropriate amount of cash, and make sure you're not sitting on an enormous pile of cash that's doing nothing," he added.

Persons: Jorrell Bland, Josh Brown, Tony Roth, haven't, Wilmington Trust's Roth, Roth, Cash, Jerrod Pearce, Goldman Sachs, Marcus, Pearce, — CNBC's Michael Bloom Organizations: Nasdaq, Federal Reserve, Mitlin, Ritholtz Wealth Management, Wilmington Trust Investment Advisors, JPMorgan Equity, Wilmington, Creative Planning, Bread, Bread Financial, Citizens Financial, Treasury Locations: Wilmington, Treasurys

☆ I'm the head of talent acquisition at Vanguard. Here are the 3 things I look for in candidates and my favorite interview question to ask.
▼ + stars: | 2023-06-05 | by ( Robin Madell | ) www.businessinsider.com time to read: +8 min

Tiffany Haley is the head of global talent acquisition at Vanguard. Haley's favorite interview question to ask is "What do you want to give to this role?" This as-told-to essay is based on a conversation with Tiffany Haley, head of global talent acquisition at Vanguard from Malvern, Pennsylvania about how to get a job at Vanguard. In my role leading Vanguard's global talent acquisition, I'm always blown away by the number of applications we receive. For example, we often interview candidates for our information technology division who might not be fully versed in all of the technologies Vanguard uses to power our business.

Persons: Tiffany Haley, It's, I'm, We're, we've, you've, I've, —, Jenna Gyimesi Organizations: Vanguard Locations: Malvern , Pennsylvania

☆ Time is running out to repay Covid-era 401(k), IRA withdrawals — and claim a tax refund
▼ + stars: | 2023-06-03 | by ( Greg Iacurci | ) www.cnbc.com time to read: +2 min

Hundreds of thousands took distributionsData suggests hundreds of thousands of people took coronavirus-related distributions — and that few have repaid it. Nearly 6% of investors in workplace retirement plans took a CRD in 2020, according to internal administrative data from Vanguard Group. That amounts to about 268,000 people out of 4.7 million retirement investors for whom Vanguard provided administrative services that year. Amended return necessary to claim refundInvestors who repay all or part of their CRD by the three-year deadline must file an amended tax return to claim a tax refund, according to the IRS. This person would have to file an amended tax return for each year.

Persons: Sean Deviney, Deviney Organizations: Vanguard Group, Vanguard, IRS, Investors Locations: Fort Lauderdale , Florida

☆ Get paid for doing nothing: What you should know about cash sweep accounts
▼ + stars: | 2023-05-19 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Doing nothing pays these days — at least that's the case if you're talking about cash that's sitting in your brokerage account. Consider Fidelity Investments is offering a 2.6% APY on its cash management account, but LPL Financial pays 0.45% on its insured cash account for clients with $300,000 to $500,000 in household value. First, examine your goals for the money before you shop around for cash sweep rates. Finally, if you do pile cash into your sweep account, think about the tax implications of doing so. Some firms offer different options for investing your cash sweep account, including a municipal money market fund for investors who reside in high-tax states.

☆ How to invest in the S&P 500 — a guide to the funds that mimic the influential index's makeup and moves
▼ + stars: | 2023-05-15 | by ( Martin Daks | ) www.businessinsider.com time to read: +17 min

After tracking the S&P 500 from 1965 to 2021, Berkshire Hathaway found the compound annual gain in the S&P 500 was 10.5%. In the case of S&P 500 index funds, the stocks are those of the companies listed in the S&P 500. With 500+ stocks in their portfolio, S&P 500 funds are especially diversified, their securities representing a range of industries. With 500+ stocks in their portfolio, S&P 500 funds are especially diversified, their securities representing a range of industries. The diversified, passive approach of S&P 500 funds — like most index funds — means an investor's downside is generally limited.

May 8 (Reuters) - Vanguard Group, the largest provider of mutual funds, has secured regulatory approval to continue to own big stakes in U.S. power utilities, overcoming Republican concerns over its environmental, social and governance (ESG) policies. Regulators had previously allowed Vanguard to exceed that antitrust limit on the basis that this would not interfere with the utilities' operations. Vanguard countered that its funds do not exert control over the decisions of the utilities. Vanguard reiterated in a statement on Monday that it leaves "management decisions to companies and policy decisions to policymakers." A representative for Indiana Attorney General Todd Rokita, one of the leaders of the group challenging the FERC extension, said he would comment in coming days.

☆ Global issuance of mortgage-backed securities falls to a 23-year low
▼ + stars: | 2023-05-04 | by ( Patturaja Murugaboopathy | ) www.reuters.com time to read: +3 min

May 4 (Reuters) - The issuance of global mortgage-backed securities (MBS) slumped to a 23-year low in the first four months of this year, highlighting the turmoil in the real estate sector as higher mortgage rates hit property sales and refinancing. According to Refinitiv data, global MBS issuance stood at $100 billion in the first four months of this year, the lowest since 2000. Reuters GraphicsThe property sector, often a leading indicator for other economic activity, has seen a slump this year due to a spike in mortgage rates as global central banks increased interest rates to tame inflation. MBS consist of pools of home loans and other real estate debt and typically carry higher yields than U.S. Treasuries. The refinancing of existing mortgages may also be affected, as there may be fewer lenders available to refinance existing loans leading to private lenders and higher rates."

"Climate change is an existential risk and a risk to investor returns," said John Galloway, who oversees the Pennsylvania firm's engagement and proxy voting at portfolio companies, in an interview by teleconference. Galloway said in practice the proposal, which won 42% support, would have required a wholesale change to Valero's business, a decision best left to the board. "A proposal that’s asking a company to make a change that’s changing its strategy is not a proposal we're likely to support," Galloway said. U.S. Republican politicians applauded the move as responsive to their efforts to counter many companies' treatment of environmental, social and governance (ESG) matters. Galloway said the decision was driven with an eye on the varied views of its largely retail client base.

Such diversification failed to benefit investors last year, when stocks and bonds both tumbled as the Federal Reserve raised rates to fight surging inflation. A typical 60/40 portfolio tracked by Vanguard last year suffered its worst annual decline since 2008. "Inflation, and the perception of tighter credit as a result of inflation, is going to hurt both bonds and stocks,” he said. But benchmark Treasury yields drifted lower, at least partially offsetting those declines. "We now have yield in the bond market, which we haven’t had for 10 years," said Paul Nolte, market strategist at Murphy & Sylvest Wealth Management.

Meanwhile, Republicans, many from energy-producing states, have raised a growing chorus of challenges on ESG. This can be a problem for fund participants who do not share ESG goals, the Republicans wrote. Asset managers have argued that such memberships align with their fiduciary obligations, and some are giving clients more control over proxy votes. "Asset managers voting for the exclusion of one of their competitors has clear antitrust implications," the letter states. The resolutions were filed by activist shareholder group As You Sow, which the Republicans suggested had targeted Vanguard over its withdrawal.

Meanwhile, Republicans, many from energy-producing states, have raised a growing chorus of challenges on ESG. The latest letter built on concerns many of the same attorneys general brought to BlackRock last August. This can be a problem for fund participants who do not share ESG goals, the Republicans wrote. Another section of the Republicans' letter cites several pending shareholder resolutions that ask corporations to dial back the use of Vanguard Group retirement plan funds because of Vanguard's fossil fuel holdings. "Asset managers voting for the exclusion of one of their competitors has clear antitrust implications," the letter states.

Companies Vanguard Group Inc FollowMarch 29 (Reuters) - New Zealand's financial markets regulator issued a warning to U.S. fund giant Vanguard Group on Wednesday for failing to disclose details within the required time over infringement notices filed against it in Australia for alleged greenwashing. These funds were also offered to New Zealand investors via a mutual recognition scheme but Vanguard missed the deadline by nearly two months to notify the Financial Markets Authority (FMA) about the action by ASIC, Australia's securities regulator, it said. "Vanguard Australia regrets our oversight in failing to comply with our notification obligations to the Financial Markets Authority of New Zealand," a spokesperson said in an emailed response. Vanguard failed to identify its obligations and did not have adequate processes in place to ensure that it filed the required notice within the required period, FMA said in a statement. Vanguard's breach, if not addressed, could harm the integrity of an agreement between Australia and New Zealand over market offerings, it added.

☆ Vanguard's head of rates reveals a 'good place to invest' right now
▼ + stars: | 2023-02-27 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailVanguard's head of rates reveals a 'good place to invest' right nowVanguard's Head of Rates Roger Hallam says bonds look attractive and names his preferred areas to invest in the current market environment.

☆ GOP lawmakers vilify ESG moves at BlackRock, Vanguard but take their money nonetheless
▼ + stars: | 2023-02-21 | by ( Brian Schwartz | ) www.cnbc.com time to read: +9 min

But Republicans have vilified BlackRock, Vanguard Group and State Street for leading the push on Wall Street to promote clean energy and what GOP lawmakers often title "left-wing social priorities." Still, many Republican lawmakers received money from the very firms their party is criticizing. It was the third election cycle in a row that both lawmakers took donations from the firm's PAC. Rep. Ann Wagner, R-Mo., received $10,000 from BlackRock and a combined $6,500 from Vanguard and State Street in the 2022 cycle. Huizenga's spokesman Brian Patrick said the donations won't affect the lawmaker's position on ESG issues.

☆ Forgotten parts of the market lead the way in 2023 as advisors wrestle with how to play the economy
▼ + stars: | 2023-02-07 | by ( Bob Pisani | ) www.cnbc.com time to read: +5 min

Everyone here is amazed at how forgotten segments of the market have rebounded in 2023: international, growth, small cap and bonds. Advisors here are having a hard time wrapping their heads around the idea that there would be a recession ins 2023, and now maybe not. "With real wage growth, large payroll growth and earnings beating expectations it equals a soft landing at worst and maybe no recession near term." Most advisors here are coming to grips with Powell's insistence the Fed will not lower rates this year. Their Equal Weight S & P 500 ETF (RSP) has also attracted significant inflows from investors wary of market cap weighted indexes.

☆ Here's how to use active ETFs in your portfolio, according to Vanguard's CEO
▼ + stars: | 2023-02-07 | by ( Jesse Pound | ) www.cnbc.com time to read: +2 min

Investment giant Vanguard has made its mark as a provider of low-cost, passive index funds and ETFs, but there is still a role for active management to play, the company's CEO said Tuesday. Vanguard CEO Tim Buckley said at the Exchange ETF Conference in Miami that the company has about 20% of its assets in active strategies, down from about 90% when he started at the company more than three decades ago. And if you have the risk appetite for active, it's going to play much more on the sideline," he added. Low management fees are still important in active strategies, because they can keep portfolio managers from taking unnecessary risks, Buckley said. One example of an active strategy that has paid off for Vanguard clients is the Vanguard Ultra-Short Bond ETF (VUSB) , which launched in April 2021.

☆ A UK nuclear submarine had its broken bolts fixed with superglue, report says
▼ + stars: | 2023-02-01 | by ( Sophia Ankel | ) www.businessinsider.com time to read: +2 min

The British Navy launched a probe after finding a " defect" in a nuclear submarine, The Sun reported. Broken bolts on HMS Vanguard's reactor chamber were glued on instead of replaced, the report said. A Royal Navy source told The Sun that the discovery was a "disgrace." Nuclear standards are never compromised." A spokesperson for both the Royal Navy and Babcock did not immediately respond to Insider's request for comment.

☆ Blackstone is stepping up evictions of hundreds of tenants across the US as a top exec vows 'cash-flow growth'
▼ + stars: | 2023-02-01 | by ( Robert Davis | ) www.businessinsider.com time to read: +5 min

It's back to business as usual: An exec said he had confidence in the firm's "cash-flow growth." About one-fifth of those holdings are tied up in an investment vehicle known as the Blackstone Real Estate Investment Trust, or BREIT. Blackstone's real-estate portfolio is outperforming competitorsThe news of Blackstone's increasing eviction efforts came days after the company announced its fourth-quarter earnings. For example, what Blackstone calls its "opportunistic" real-estate portfolio appreciated by more than 7% during 2022 in one of the most challenging markets in recent memory. The firm's core real-estate portfolio gained more than 10% in value during 2022.

☆ Forget ChatGPT - an AI-driven investment fund powered by IBM's Watson supercomputer is quietly beating the market by nearly 100%
▼ + stars: | 2023-01-31 | by ( Phil Rosen | ) www.businessinsider.com time to read: +2 min

While the language bot ChatGPT has gone viral, a Watson-powered ETF is making nearly double the returns of the broader market. The AI Powered Equity ETF is up 10.4% in 2023, whereas the Vanguard Total Stock Market Index is up 5.67%. Issued by ETF Managers Group in partnership with the fintech firm Equbot, the fund leans on IBM's Watson supercomputer to balance its portfolio. That 114-holding portfolio is up 10.4% so far in 2023, while the Vanguard Total Stock Market ETF is up 5% over the same stretch. Chris Natividad, the chief investment officer of Equbot, said the Watson-powered fund can look beyond standard market data and cull information from tweets and earnings calls, according to ETF.com.

☆ Here's why investors should consider putting money in the market now as optimism climbs, according to Vanguard's head of investor research
▼ + stars: | 2023-01-28 | by ( Phil Rosen | ) www.businessinsider.com time to read: +3 min

Investors should consider moving cash into the market right now, according to Vanguard's global head of investor research and policy. In her view, investors can capitalize on the current landscape by increasing their savings rate and leaning more into employer-sponsored retirement accounts. "Yes, there's been volatility, but the longer-term outlook [investors] have for the stock market is stable," Greig said. Investors have turned a bit less anxious about short-term stock returns, as of December 2022. There's some lower expectations for stock market returns in the short term, but we see pretty clear expectations and optimism for returns in the next 12 months, and even 10 years."

☆ Vanguard's global investment expert explains what traders are doing to kick off 2023 and how markets are reacting to the Federal Reserve's policy tightening.
▼ + stars: | 2023-01-28 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

Today, I'm sharing my conversation with Fiona Greig of Vanguard's Investment Strategy Group. Fiona Greig, global head of investor research and policy for Vanguard VanguardFiona Greig is the global head of investor research and policy for Vanguard's Investment Strategy Group. This suggests a "stay the course" posture, meaning yes there's been volatility, but the longer term outlook they have for the stock market is stable. There's some lower expectations for stock market returns in the short term, but we see pretty clear expectations and optimism for returns in the next 12 months, and even 10 years. The firm's strategists said these companies pay out a healthy dividend and can offset stock market losses in a slow-growth economic landscape.

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