Valuable insights for you and your clients
Vanguard's take on the active-passive debate
Vanguard's Todd Schlanger explains why choosing between passive and active investments isn't an either/or proposition.
Myth: Active performs better in certain market segments
We find that all types of investors often believe in certain myths about active management. In this article, we want to look at one of the common investor myths, which is the notion that active management will outperform in so-called "less efficient markets."
Proper benchmarking: What I learned as a hedge fund manager
Senior Investment Strategist Chris Tidmore explains how properly benchmarking hedge funds and other alternatives can improve their relative performance.
Myth: Higher active share leads to better outcomes
It's a myth that higher active share leads to better outcomes. The reality is that the zero-sum game and the low-cost advantage apply no matter the percentage of a fund portfolio that differs from a benchmark index.
Spotlight articles
Making the implicit explicit: A framework for the active-passive decision
This Vanguard Group, Inc., research paper offers a quantitative framework for establishing allocation targets for a range of investors, focused on four key variables—gross alpha expectation, cost, level of active risk and active risk tolerance. The analysis shows both passive and active management can be appropriate.
Vanguard's framework for constructing globally diversified portfolios
This Vanguard Group, Inc., research paper reviews the investment decisions that individual investors face when building a globally diversified portfolio, explaining why broadly diversified, market-capitalization-weighted global index funds are a valuable starting point for all investors.
Why Vanguard active? In a word…
We know why investors choose active investments: performance. Vanguard believes the key to outperformance is removing a significant hurdle, right at the start.
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