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We strongly believe that investors should know what they're investing in. Vanguard's 2 new ETFs, Vanguard Diversified All Growth Index ETF VDAL and Vanguard Diversified Income ETF VDIF are bound to interest investors as they are income and growth plays. We take a deep dive into both, and multi-asset offerings in general.You can read the full article here.To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here.Additional resources from our episodes are available via our website.Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.
In this episode, we dive into the popular Vanguard ETFs, VAS (Vanguard Australian Shares Index ETF) and VDHG (Vanguard Diversified High Growth ETF). We break down their key differences, what they offer investors, and whether combining the two is a good idea. Learn about their holdings, historical returns, and how they fit into a diversified portfolio.We also share our personal wins and challenges with subscriptions, tax time, and outsourcing tasks like bookkeeping. Plus, we reflect on the importance of balancing frugality with enjoying small luxuries, like a great cup of coffee and meaningful conversations.We also tackle the debate: should you stick with one ETF or mix and match? Whether you're building your portfolio from scratch or refining your approach, this episode will help you make informed decisions about your investments. Tune in for actionable tips to get rich, slow!@tashinvests@anakresina@getrichslowclub@pearlerhqGet Rich Slow ClubPearlerYouTubeHow To Not Work ForeverDisclaimerAny advice is general and does not consider your financial situation needs, or objectives, so consider whether it's appropriate for you. You should also consider seeking professional advice before making any financial decision.Natasha Etschmann is an Authorised Representative #1299881 of Guideway Financial Services Pty Ltd AFSL#420367. Read the FSG available from https://tashinvests.com/linksPearler is an Authorised Representative #1281540 of Sanlam Private Wealth Pty Ltd AFSL #337927. Read the FSG available from https://pearler.com/financial-services-guideIf you are considering any of the products we spoke about during the show, be sure to read the Product Disclosure Statement & Target Market Determination available from the product issuer's website before deciding. Hosted on Acast. See acast.com/privacy for more information.
In this podcast Paul starts by recommending, “Episode 285: A Year In Review" a podcast/video. In Paul's review of 2023 returns he compares Chris' Best In Class ETF recommendations with similar Vanguard ETFs and the average return in each equity asset class. He also gives returns for the most popular portfolios including, Ultimate Buy and Hold, 2 Fund U.S., 4 Fund U.S. and 4 Fund WW. Using an article from Ben Carlson Paul is able to find even more reasons 2024 should be a very profitable year for investors.Paul discusses his nominee for the #1 Fund Family in America. He closes with a portion of a letter from Subah Randhawa, President of Western Washington University.
Today we're cracking open the podcast question box to riff on some of the questions you've asked us recently. In this episode, we cover a whole heap of different topics in a relaxed style, including:
Analyst Owen Rask and financial planner Drew Meredith dive into everything you need to know about Vanguard, and all of its secret sauce, tricks and strategies
In this video, I will go over 3 of the best Vanguard ETFs to invest in. These ETFs include VTI the Vanguard Total Stock Market Index, VHT Vanguard Health Care Index Fund and VNQ Vanguard Real Estate Index Fund. These offer the potential for great gains and passive income. Truly becoming a set it and forget it kind of investment. Buying and holding these ETFs have shown to beat the overall market returns since the funds inception. They may also offer great exposure to other areas investors may not have any weight toward such as Real Estate. Follow me on YouTube: CitizenoftheYear! Disclaimer:This is not financial advice and I am not a licensed financial advisor. Always do your own research before investing and work with a licensed financial advisor. These are my opinions for informational purposes only and not to be taken as investing advice.
If you've done any sort of research on index investing and ETFs, then I'm almost certain you would have heard of Vanguard, as they are one of the pioneers in this space. They have a very impressive massive following in the US and have really established themselves in Canada as well, where they are the 3rd largest ETF provider. I always wanted to interview them because I'm sure, like you, as one invests, you begin to wonder about certain things when it comes to index investing, and ETFs in general. I've been accumulating this list of questions for them over the years and it's exciting to finally get a chance to interview them. Questions Covered: Asset allocation ETFs have become incredibly popular here in Canada so I thought we could start our conversation there.First, for anybody just getting started in DIY investing, can you briefly explain what asset allocation ETFs are? One of the key appeals of asset allocation ETFs for many Canadians, is that the funds within the ETF are automatically rebalanced. Therefore, DIY investors don't need to use tools or a spreadsheet to do this themselves. How often are the Vanguard asset allocation ETFs rebalanced? And when we have something like the large but brief crash from COVID, are the asset allocation ETFs rebalanced at a different interval during such significant events? A dilemma that I'm sure many Canadians face is whether they should use an asset allocation ETF for their entire portfolio, or whether they should split it up and buy individual ETFs instead, to get a slightly lower cost and increased tax efficiency by being able to place the individual ETFs in the account type that is most efficient for that ETF. Is there a certain threshold in terms of portfolio size, or something else where you think Canadians should consider switching from an asset allocation ETF to individual ETFs? When it comes to your asset allocation ETFs, I noticed that your allocations definitely differ from your main competitor iShares. Can you take us through how your asset allocation ETFs are different from iShares, and why you believe your methodology is superior? DIY Investors that classify themselves as total market index investors often hear that their equity asset allocation should be based on market cap weights. For example, since Canada is only 2.4% of the world markets, then only 2.4% of our portfolio should be in Canada (source). However, when we look at the asset allocation ETFs of Vanguard (and your competitors), we notice that Canada is overrepresented (i.e. a home country bias), and the US is underrepresented with respect to just their market cap weights. I know there is a reason you do this and Vanguard has done research on this so can you take us through why your weights don't actually try to exactly match the market cap weights that we see across the world? One particular ETF that I'm sure has caught the attention of many retirees (or soon to be retirees) is the Vanguard Retirement Income ETF (VRIF). Can you explain what this ETF is, and the pros and cons of using it vs just holding a more traditional core total market index portfolio (like VGRO or VBAL for example). One of your popular ETFs is VUN (the Vanguard US Total Market Index ETF). Traditionally, Vanguard and iShares tend to have almost identical fees (MER), when it comes to total market index investing. However, I've had several listeners ask why in the case of VUN, its main competing ETF (XUU from iShares) is at a 0.08% MER whereas Vanguard is double at 0.16% MER. Now I realize that these are both still really low MERs, especially when we compare them to traditional mutual funds that tend to have MERs of 2%+, but I was wondering if this uncommon discrepancy in fees is something that is on Vanguard's radar, and is Vanguard considering matching iShares like it has in the past with many of its other ETFs? This next one is a bit technical, but for Canadian investors that are really trying to optimize their portfolio: Whether stocks are held directly or through an ETF in another country like the US becomes important, due to the two layers of withholding tax that we have to pay if we're holding international stocks through a US listed ETF. With the Vanguard international ETFs (VEE and VIU), are the international companies now held directly instead of through a US listed ETF? And if not, is that something that Vanguard is looking into changing in the future so that Canadian investors no longer have to endure those two layers of dividend withholding tax? Vanguard is seen by many Canadians as the pioneer when it comes to passive, total market index investing, especially with your founder Jack Bogle being such a strong supporter of total market index investing. I noticed however that Vanguard also has an active investing division. Can you tell us more about that as typically active investing is viewed by DIY passive index investors as the complete opposite of passive total market index investing. Why does Vanguard believe that having a combination of both active and passive funds plays a critical role in a well-diversified investment portfolio? Can you tell us about the different resources available on your site for investors?
While the headlines have focused on the first 6 months of 2022 as “The Worst First 6 Months of the Last 50 Years!”, the reality is that well-diversified investors have suffered modest losses. In this podcast, Paul reviews the major losses of growth stocks, cryptocurrencies, and barely bear market losses in the major indices, as well as the returns of the Best-In-Class (BIC) returns for all of the major asset classes. The good news is in both the equity and bond markets, the BIC performed better than the averages. The bad news is they were still losses. Paul compares the difference in returns for the average fund in each asset class, each asset class index, and the return of the Best-In-Class ETF recommendations by Chris Pedersen, as well as the BIC ETF recommendations with similar Vanguard ETFs. Bond funds are another area of concern for investors this year and Paul also compares the BIC bond fund returns individually as well as a portfolio, and the returns for the S&P 500 and Total Market Index. See Fine Tuning Tables: https://paulmerriman.com/wp-content/uploads/2022/02/Fine-Tuning-Tables-50-50-2022-1.pdf See Sound Investing Tables: https://paulmerriman.com/wp-content/uploads/2022/06/Sound-Investing-Portfolios.pdf See Best-In-Class ETF Recommendations: https://paulmerriman.com/best-in-class-etf-recommendations/ Read article: "The Worst 6 Months Ever For Financial Markets" by Ben Carlson: https://awealthofcommonsense.com/2022/07/the-worst-6-months-ever-for-financial-markets/
Davis Mattek is joined by Jason Strasser (@Strassa2) to discuss how the Fed is responding to the impending recession, the problem with Vanguard ETFs, how crypto is handling the extreme bear market, and more thorny financial topics. www.patreon.com/taekcast
In this Quick Tip Codie Sanchez from Contrarian thinking offers advice on lowering costs, making more money and using the difference to start investing. And these days you can start real small. Here's a link to the full episode if you want to hear more from Codie: https://shows.acast.com/stocks-for-beginners/episodes/codiesanchez-commerce-capitalism-contrarianinvesting-cannabisCodie Sanchez is a reformed journalist, turned institutional investor to cannabis investor and adviser, to now Founder at Contrarian Thinking and Cofounder of Unconventional Acquisitions. She thrives on helping people think critically, and cashflow unconventionally while allocating to what we call “sweaty & boring” small businesses.Throughout her career, she has worked at the intersection of marketing and money, finding contrarian ways to invest. She's always balanced her profession with non-profit service to empower women, veterans, and Latinos.She joined Vanguard ETFs in 2008 ($870B) to build out their ETF business, quite the time, then moved to Goldman Sachs Alternatives group. Following this, she became an SVP at SSGA ($580B) in institutional investing tasked with a $3 billion region, finally coming to First Trust ($63B) to build the LatAm investment business from the ground up. Codie has led global teams in all asset classes, negotiating JV's, product creation and market entry across the Americas. Sharesight is the best portfolio tracking tool in the known universe - and they are pleased to extend a SPECIAL OFFER to listeners of this podcast: Save 4 months on an annual premium plan! Click here and sign up now for a 7 day free trial. Or go to https://www.sharesight.com/stocksforbeginnersDisclosure: The links provided are affiliate links. I will be paid a commission if you use these link to make a purchase. You will also usually receive a discount by using these links/coupon codes. I only recommend products and services that I use and trust myself or where I have interviewed and/or met the founders and have assured myself that they're offering something of value. Stocks for Beginners is for information and educational purposes only. It isn't financial advice, and you shouldn't buy or sell any investments based on what you've heard here. Any opinion or commentary is the view of the speaker only not Stocks for Beginners. This podcast doesn't replace professional advice regarding your personal financial needs, circumstances or current situation. See acast.com/privacy for privacy and opt-out information.
In the final installment of the Money Moves series on earning, saving and investing, Daniel breaks down the 6 fundamental elements of a portfolio that has both stability and tremendous growth potential. Attend the Money Moves workshop: http://www.newwaveentrepreneur.com/workshop Early Birds receive a $100 discount + bonuses!Connect with Daniel, access free guides and get early notifications on exclusive drops: http://www.NewWaveEntrepreneur.com My website: http://www.NewWaveEntrepreneur.com YouTube: https://www.youtube.com/danieldipiazzatv Tik Tok: https://www.tiktok.com/@danieldipiazza IG: https://www.instagram.com/danieldipiazza/ Twitter: https://twitter.com/Rich20Something My VIP group via SMS (for exclusive drops): https://superphone.io/f/11kmu1ar Resources MentionedWhat is compounding? https://www.investopedia.com/terms/c/compounding.asp Vanguard ETFs https://investor.vanguard.com/etf/list#/etf/asset-class/month-end-returns Vanguard VOO Top 500 American Companieshttps://investor.vanguard.com/etf/profile/VOO Fidelity ETFshttps://www.fidelity.com/etfs/overview Buying a Foreclosed Househttps://www.investopedia.com/investing/buying-foreclosed-home/ Becoming Your Own Banker: Unlock the Infinite Banking Concepthttps://www.amazon.com/Becoming-Your-Own-Banker-Infinite/dp/B001NZO1DS Timestamps [00:00] Intro/Overview of EP26[02:55] The magic of compounding and the rule of 7. How much would a penny be worth in a few years if you simply let it compound? [09:54] Crypto will be the current generation's gift to the monetary system[12:32] Where to buy individual stocks: Vanguard, Fidelity, Robinhood and others. Pros vs cons. [18:35] What are ETFs and how do they work? How are they different from individual stocks and mutual funds?[26:09] Real-estate investing: some high-level ideas. Buying foreclosures, apartment units (house hackings) and more. [33:40] Some general portfolio tips: stay balanced, but keep growing! What is the “Infinite Banking” system? Using your life insurance policy to lend money to yourself [37:36] Liquidity: what does it mean? What are the most liquid assets?[39:00] Closing thoughts/SummaryDisclaimers None of the contents of this show should be taken as financial or legal advice. The New Wave Entrepreneur is educational and entertainment content only. Remember: always DYOR!Podcast production by Risko S.
What goes up, goes down, and has come back up again. Don talks about the week's market a takes a bunch of listener questions:What do we think of the portfolio help a listener has for a friend?Another caller wanys advice on shifting Vanguard investments.Is there really a tax advantage to ETFs?A woman with a Vanguard advisor wonders if she needs full-service financial advice.Would it make more sense to use two Vanguard ETFs instead of just VT?
This podcast (also a video) answers questions from our listeners, viewers and newsletter subscribers, and updates you on our upcoming projects. Paul Merriman, founder and president of The Merriman Financial Education, is joined by Chris Pedersen, Director of Research and author of 2 Funds for Life — A quest for simple & effective investing strategies, and Daryl Bahls, Director of Analytics. Topics: What's on the trio's to-do […] The post Your questions answered, our plans revealed appeared first on Paul Merriman.
In this review of 2021 investment results, Paul shares 10 lessons he thinks will be of interest to you following our advice. How many up and down days did the market produce and how that compares to longer-term profitable vs. losing periods? The market reached 70 new highs during the year. Is that good news […] The post 2021 investment results you should know appeared first on Paul Merriman.
In this review of 2021 investment results, Paul shares 10 lessons he thinks will be of interest to you following our advice. 1. How many up and down days did the market produce and how that compares to longer-term profitable vs. losing periods? 2. The market reached 70 new highs during the year. Is that good news or bad? 3. The biggest drawdown for the year was 5.1%. How does that compare to past years? 4. Commodities, oil and Bitcoin were among the big winners in 2021. But why do the reported returns of the S&P and other equity asset classes understate their actual returns? 5. Paul focuses on a short report from Dimensional Funds: When It's Value vs. Growth, History is on Value's Side https://www.dimensional.com/us-en/insights/when-its-value-versus-growth-history-is-on-values-side. This study highlights the high volatility in the difference between these two asset classes. Bottom line average advantage to value is more than 5%. 6. Sometimes investing results can be hard to explain. Paul reviews the 2021 small and large value and growth returns in U.S., international and emerging markets. Investors may be surprised to see the huge differences from what might be considered similar asset classes. 7. In our Best In Class ETF recommendations our Director of Research, Chris Pedersen, works hard to identify the ETFs that should be among the best. Paul reviews the results of his recommendations compared to the returns of the average ETF in each equity asset class. 8. Many investors struggle to make the decision Best In Class ETFs or all Vanguard all the time. Paul compares the returns of the BIC ETFs portfolios (U.S. 4 Fund, Worldwide 4 Fund and Worldwide All Value and more) to similar portfolios with Vanguard ETFs. Paul also compares BIC with similar DFA portfolios. Investors have to decide whether those differences will be similar in the future or 2021 was an aberration. 9. Many investors have chosen the Total Stock Market over the S&P 500. Paul discusses the reasons their historic returns are almost the same and why the S&P 500 way outperformed the TMI in 2021. 10. While equity is considered the gas for growth in a portfolio, bonds are considered the brakes. Paul explains why he doesn't recommend international bonds to stabilize a portfolio and why international bonds lost more money than U.S. bonds in 2021.
The point of residency is to learn how to be a good doctor. It's not to try to get rich. But for new residents there are a few financial chores you need to take care of during residency. Don't drop the ball on these. Get in the habit of saving something each month from your paycheck, know where your money is going, and make sure you have critical insurance in place. We discuss these chores in more detail in this episode. For our non resident listeners we also answer some of your questions about mega backdoor Roth IRAs, DFA ETFs vs Vanguard ETFs, getting rid of your whole life insurance policy, everyone's favorite tax form - form 8606, and cash balance plans. This episode of The White Coat Investor is sponsored by Biohaven Pharmaceuticals. Biohaven is a commercial-stage biopharmaceutical company with innovative therapies designed to improve the lives of patients with debilitating neurological and neuropsychiatric diseases, including rare disorders. Biohaven offers a broad pipeline of late-stage product candidates across three distinct mechanistic platforms, including developing therapies for patients with Amyotrophic Lateral Sclerosis (ALS), Alzheimer's, and obsessive compulsive disorder (OCD). The FDA also recently gave Biohaven's Nurtec® ODT (rimegepant) its second indication. To discover more about Nurtec ODT and Biohaven's neuroinnovative portfolio of treatments in development, visit https://www.biohavenpharma.com The White Coat Investor has been helping doctors with their money since 2011. Our free financial planning resource covers a variety of topics from doctor mortgage loans and refinancing medical school loans to physician disability insurance and malpractice insurance. Learn about loan refinancing or consolidation, explore new investment strategies, and discover loan programs for specifically aimed at helping doctors. If you're a high-income professional and ready to get a "fair shake" on Wall Street, The White Coat Investor channel is for you! Main Website: https://www.whitecoatinvestor.com YouTube: https://www.whitecoatinvestor.com/youtube Student Loan Advice: https://studentloanadvice.com Facebook: https://www.facebook.com/thewhitecoatinvestor Twitter: https://twitter.com/WCInvestor Instagram: https://www.instagram.com/thewhitecoatinvestor Subreddit: https://www.reddit.com/r/whitecoatinvestor Online Courses: https://whitecoatinvestor.teachable.com Newsletter: https://www.whitecoatinvestor.com/free-monthly-newsletter
Welcome back to another episode of Teaching Transformations! Make sure to tune into the boys' esoteric conversation as they talk Liquid Death and use the definitions of specialization and diversification to prepare you for an easy retirement. The Teaching Transformations Podcast. Join Tim Desmond Ryan Wooley as they help teachers in their late forties or fifties to design a post-academic life. Seize the Day! Links: Transformations - The free weekly email with the best personally curated resources to help teachers in their late forties or fifties to design a post-academic life. - https://teachingtransformations.com/ Liquid Death - https://liquiddeath.com/ Vanguard ETFs - https://investor.vanguard.com/etf/ Teaching Transformations Podcast - https://teachingtransformations.com/podcast/ Intro and outro music by Penthouses. “Come to Ohio” from The Weatherman album available on most music platforms. *Full disclosure: Some of the links are affiliate links.
M1 Finance Beginner Portfolio update time! Lets take a look out how my beginner portfolio did in the stock market this week.I selected all Vanguard ETFs which should be available on most brokerage platforms commission free (hopefully) The asset allocation is: 60% VTI (Total US Stock Market Index) 20% VXUS (Total International Stock Market Index) 20% VTWV (Vanguard Russell 2000 Small Cap Value Index) In todays podcast I will also cover the topic of wealth building and how easy it can be to build generational wealth with as little as $25 dollars. This is very powerful stuff that anybody can learn and apply today! --- Support this podcast: https://anchor.fm/mokifinance/support
M1 Finance transformed Jonathan's ideas about how simple complexity could be and has quickly become his favorite investing platform, especially for taxable accounts. Brian Barnes investing story begins at the age of 10 when his parents exposed him to trading stock in a brokerage account with Ameritrade. He was captivated by the notion of investing and the intellectual puzzle of how a company was doing. His parents laid a general foundation of financial independence and security. Once basics were covered, they placed value on putting money someplace where it could accrue value, compound, and become ownership is something valuable. Getting started at the tail end of the Dot Com bust, it was a great time to be buying when prices were low and companies were valued cheaply. Brian says there is a big difference between traders and investors. Traders speculate on price and try to make money on short-term movements. Investors buy ownership in companies, asset classes, or industries to accrue value over long periods of time. When you aren't making frequent investment decisions, it becomes more about viewing your portfolio in totality and making a decision on what to do with the extra money you have leftover from your paycheck. In the trading world, you have to go in and make the same decisions to buy the same securities over and over again, but with M1, you can make the decision once and let the software automate the process. With day trading, you can't just be right once, you need to be right over and over and over again, constantly timing the market perfectly. It's difficult to predict costs even when commissions are free and it's tax-inefficient. With an investing mindset, you want to own over long periods to accrue value and generate cash flows. At the age of 25, Brian realized investing platforms hadn't changed in 15 years. He looked at consumer applications work that sought to make things simpler, more intuitive, and automated wondering why there hadn't been progress in the financial services world. He thought it would be nice if he could tell a software platform the portfolio he wanted to own, and anytime he had money, he could throw it into the platform and it just went to work. He wanted to deploy all of the money by purchasing fractional shares so there wasn't any cash drag. And finally, incredibly low fees with no commissions. As M1 has expanded, it's grown from his “wouldn't it be nice” idea to other areas like borrowing and spending, allowing users to have one financial institution instead of needing to use multiple apps. M1's philosophy is that a great product allows you to do complex things simply. What they allow customers to do is determine what share of their portfolio they want in any given investment and then the software handles the complex and mundane administrative work. It used to be that you had to buy lots of 100 shares. It was a big step forward to be able to purchase odd lots of shares. Being able to purchase fractional shares with M1 is transformational. They do this by purchasing in whole shares and adding the leftover fractions to their own inventory account. It makes it easier for the customer to deploy more money consistently and have a diversified portfolio. M1 is a commission-free platform. Traditional brokerages made 10-35% of their money from commissions. Through technology development, the cost to trade is only an electronic message. Though not free, on a per-transaction basis, it can be no-cost to the user. M1 can make money monetizing the assets held on their platform so by being efficient, they don't need to charge transaction fees, making it a win-win arrangement. M1 is not good for day traders. It's suited for systematic investing in the portfolio of your choosing. Their trade windows occur twice a day and aggregate all orders on behalf of their customers once in the morning and once in the afternoon. While you can invest money every day through M1, a good financial habit to establish is to invest the extra cash you have leftover from your paycheck every two weeks. M1 allows for that to be automated. Portfolio management in M1 orients itself around a pie concept. At the highest level, the pie is 100% of your portfolio. You can then begin to divide up the pie into slices based on what percentage of your portfolio you want in specific investments. The slices can then become their own pies. It allows for a diversified portfolio, controlling risk exposure, without the risk of becoming overconcentrated. In M1 you can rebalance your portfolio in the next trading window with the one-click button although that method is tax-inefficient. Instead, additional contributions will automatically work to rebalance your portfolio with your pies without causing taxable events. With investing, taxes are going to be your biggest fees. Minimizing taxes controls costs and maximizes long-term success. With M1's dynamic rebalancing, it tries to minimize the sale of securities with tax consequences to push taxes out as far as possible and let your money have more time to compound. Brian is a fan of Vanguard and what they have to prioritize the individual investor. The difference between M1 and Vanguard is that you can buy Vanguard ETFs with M1, but Vanguard has a mediocre brokerage to buy other securities. Compared to Vanguard, M1 offers a more robust and comprehensive personal financial platform, such as a line of credit against your securities with rates as low as 2%. M1 also has a high-yield checking account earning 1% plus 1% on debit card purchases. The smart transfer tool allows you to set parameters and have money automatically move in and out of accounts accordingly. M1 wants to be a personal finance platform where you can manage your money holistically. They just launched custodial accounts which are available with the M1 Plus membership for $125 a year which has additional benefits across Invest, Borrow, and Spend. M1 is offering a promotion to get one year of M1 Plus for free. In the last few weeks, ChooseFI CEO Ed has been migrating assets from other platforms to M1. While Brad already has an M1 account, this conversation with Brian has helped him realize what he has been missing out on. Jonathan wanted to note that with the smart transfer rules, the decumulation phase can now be as easy as the accumulation phase. Previously, Jonathan was going to get a HELOC. When he stumbled upon M1 Borrow, he realized that it was a margin loan much in the same way that a HELOC is a loan against your home. Borrow can be a liquidity tool, giving you access to 30% of your investments as an emergency fund. It gives you an incentive to build an emergency fund and keep it invested. Brian says you should be able to have a line of credit against a liquid investment portfolio at really low-interest rates. The goal for M1 Finance as the finance super app is for people to come to M1 to manage their finances, not a component of their money, as well as provide the same level of capability that a high-price team optimizing every aspect of your finances could in a self-serve product. You won't find VTSAX on M1. VTSAX is a mutual fund and M1 does not have mutual funds. What it does have are ETFs which are identical versions of mutual funds. VTI is the ETF version of VTSAX on the M1 platform. M1 also has Paul Merriman pies for anyone interested in his ultimate buy and hold portfolio. For those in the decumulation phase, M1 has IRAs, taxable accounts, and 401Ks that may be rollover into IRAs which can be set up as smart accounts using dynamic rebalancing and withdraw money in the most tax-efficient manner possible. Resources Mentioned In Today's Conversation M1 Finance-Completely Free Automated Investing! If You Want To Support ChooseFI: Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy. Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence.
Welcome to Finance and Fury – Vanguard bringing in some disruption to Australian markets - If you haven’t heard of them – Vanguard are the world's second biggest asset manager – dealing in index funds and ETFs Vanguard – have almost $9 trillion of funds under management world wide company's incredible rise since being founded in 1974 by investor Jack Bogle – providing low cost access to indexes – originally with managed funds but recently been branching out into ETFs But they have recently been branching out into platform services on top of asset management – little while ago - came out with the Vanguard personal investor platform Low cost account to access Vanguard investments - an Account Fee of 0.20% per annum, based on the total portfolio value of your account, including any cash held, capped at $600 per annum, per account A lot of the wholesale funds have high minimum buy ins – about $500k in some cases – so going through a platform gets around this – was third party platforms but Van have come out with their own Now they are is gearing up to disrupt Australia’s superannuation industry – this is a pretty big play from such a behemoth as Vanguard It all started when they announced that they will return tens of billions of dollars it now invests on behalf of super funds They are ceasing managing bespoke investments for Australia's superannuation funds – trustees outsource the investment management of the underlying assets – especially for index fund investments All as Van prepares for a disruptive second push into superannuation – first was taking over management of funds – not be direct super providers seeks to manage super accounts directly with potentially lower admin and investment fees This is big for vanguard – it is a lot of sacrifice initially to make what they likely estimate to be better fees long term Vanguard abandon up to $100 billion in investment mandates from third-party fund managers – this has been a core part of its Australian strategy since entering the market 20 years ago – manage the investments of super funds Now they want to enter the market directly and similar to the VPI platform, offer super as well Van is the second largest holder of mandates from not-for-profit funds in Aus – pretty much the industry superannuation sector The fact they have given this up – good indication of how seriously they are taking this push into the Australian super market One of the main reasons to do this and abandon their management of other super funds investments is to avoid any conflict of interest - if Vanguard to push ahead with its plans to launch an APRA retail super fund while managing the money of competitors Whilst they likely wouldn’t do it on purpose – but if their competitors underperformed on the money that they were managing compared to their in house assets – raise some questions They have some history with super – It previously launched a super fund shortly after entering the Australian market, but transferred the management of it to National Australia Bank's MLC Wealth business in 2012. Some additional competition is needed – the trend over the years and what will occur in the future is a consolidation of super funds – so less competition – has its benefits – covered this in an episode a little while back - But the Aus super sector is sitting at about $3 trillion of FUM – and this is likely to continue to climb massively – Not likely to be any time soon that they come into super – may take them a year or two – if not more – It is a rather comprehensive process of applying for a superannuation licence and entering the market At last publication – Van said it was "tracking well" - with an intended launch date of mid-2021 for its retail superannuation product – but this could be delayed slightly – but still within the next year to two – but it still is a lengthy process – few reasons: Firstly – they cant easily abandon the super industry - Vanguard Australia managing director said - would not be "abrupt", giving clients up to 24 months to find another manager or bring investment functions in-house So super funds and other investment managers have 2 years to try and replace Vanguard – they have a fiduciary duty – cant just walk away Secondly – lots of due diligence and compliance that needs to be accounted for – government agencies like APRA don’t work that quickly – so this may take a bit of time However – they will try and ramp up their direct service offerings – The managing director said - "We will push hard into the strategy of improving outcomes for individual investors, whether that is through a direct relationship or a financial intermediary, typically a like-minded adviser," It plans to stop providing portfolio services to third-party institutional investors, but continue to offer off-the-shelf pooled investments like Van managed funds or ETFs to investors Again – this is a big initial sacrifice for them to make - Institutional mandates and the fees they make from this have formed a large part of Vanguard's Australian revenue over the two decades Estimates show that these mandates account for $50 billion of Vanguard's total $160 billion in domestic assets under management But while a significant part of the strategy until now, the local boss said the business of customising and running bespoke portfolios for institutional clients was a global outlier. It’s going to give the industry funds some well-deserved and true to label competition They are the second biggest manager in the world – low cost, economies of scale – access to research and the infrastructure They have are a commercial heavy hitter – have a big brand name to attract attention and lots of market research - They understand customer lifecycle management and could pretty easily provide a MySuper alternative plus they are cheaper – likely have a lot admin and low ongoing MER/IRC – Van multi index is around 0.29% - compared to the MERs for a lot of industry funds – 0.6-0.8% for similar allocations They spokesperson said that this shift was strategic – I am excited about it – they have been moving in the right direction for a while – and working with advisers and not against them Vanguard's Australian direct-to-consumer push is also escalating – as an example - the Personal Investor portal that was launched in April - now has around 10k investors signed up to it, with growth of about 2000 since late August - The low-cost investment platform provides free trades on in-house Vanguard ETFs – and access to their wholesale managed funds without having to meet the minimum investments One of the most successful strategies that they have is support from advisers - Vanguard's retreat from institutional client work is also an indication of the lucrative rapport it has developed with Australia's financial advisers over its 20 years operating in the country. according to managing director - It now counts 12,500 Australian financial advisers as clients which represents an incredible 57 per cent penetration rate in the industry. Given their fractured relationship with the industry super lobby, which has criticised independent financial advisers for decades and warned consumers against using their services, some advisers welcomed the retreat Vanguard developed the term "adviser alpha", which has become an influential concept in practice management for financial advisers. It refers to the value of financial advice being in client relationships rather than investment management and returns. Just something to watch out for – may be a trend – Aus super industry could have distribution in the future – Google super, Amazon super, Apple super – etc. – larger brands are thinking of branching out – many years off – and time will tell – but we know that Van is coming out with their own super soon which depending on the fees – may be an option. Thank you for listening to today's episode. If you want to get in contact you can do so here: http://financeandfury.com.au/contact/
During this episode of Virtually Live, Shannon Rivkin provides a market update through the lens of a COVID-19 vaccine. Shannon also answers member-submitted questions covering; Flinders Mines Limited (FMS), WhiteHawk Ltd (WHK), Citadel Group (CGL), Village Roadshow (VRL), Bendigo Bank’s and Westpac’s capital notes offers as well as Vanguard ETFs.
In this jam-packed episode of Virtually Live, Shannon Rivkin covers a variety of stocks including; Betashares (NDQ), on Seek (SEK), The Vanguard ETFs, Piedmont Lithium (PLL), Charter Hale Wale Long (CLW), Reece Limited (REH), The Future Generation Funds: (FGG) & (FGX) and finally Macquarie Group (MQG). Shannon also comments on the big bank stocks as well as the Aussie Broadband IPO.
Search queries for exchange-traded funds (ETF) have exploded in 2020, especially on the back of COVID-19. The number of people seeking information on Google for this investment vehicle has popped 88% from this time last year, and queries such as "Investing in ETFs", "Managed funds vs ETFs" and "Vanguard ETFs" are proving particularly popular. With interest in ETFs abuzz and a strong appetite for growth ideas from readers, Livewire decided it was about time we brought ETFs into the world of Buy Hold Sell. Join Vishal Teckchandani as he talks to investment advisers Charlie Viola of Pitcher Partners and James Whelan from VFS Group. They sit down to discuss three ASX ETFs which have been delivering sizzling returns in 2020 and then bring four of their own ASX and global ideas offering strong prospects for capital growth right now. Together, we cover hot thematics including healthcare, China, gold, robotics, 5G, US tech and a better way to play Aussie equities than simply buying the ASX 200. Visit Livewire Markets to access the video and edited transcript for this episode as well as more great insights. Note: This episode was recorded on 9 September 2020.
On May 9, 2020 Chris Pedersen and Paul Merriman addressed the San Diego American Association of Individual Investors (AAII) via Zoom. Chris, director of research, presented “2 Funds for Life” and Paul, founder and president of The Merriman Financial Education Foundation, presented “The Ultimate Buy and Hold Strategy.” After the presentations …
Codie Sanchez is a reformed journalist, turned institutional investor to now a Managing Director and Partner at Entourage Effect Capital, a private equity firm focused specifically on investing in the legalized cannabis industry. Since its inception in the summer of 2014, EEC has deployed $100+ million into over 65 companies out of its two dedicated funds and co-investments. Throughout her career, she has worked at the intersection of marketing and money, finding contrarian ways to invest. She’s always balanced her profession with non-profit service to empower women, veterans and Latinos. She joined Vanguard ETFs in 2008 ($870B) to build out their ETF business, quite the time, then moved to Goldman Sachs Alternatives group. Following, she became an SVP at SSGA ($580B) in institutional investing tasked with a $3 billion region, finally coming to First Trust ($63B) to build the LatAm investment business from the ground up. Codie has led global teams in all asset classes, negotiating JV's, product creation and market entry across the Americas. She is a board member at The Arcview Group, Magma Partners Venture Fund, Texans for Veterans and a member of the free markets think tank, AEI's Enterprise Club. She also sits on the policy board of the Marijuana Policy Project. She invests in women led startups through Plum Alley, WAVE and The Vinetta Project and cannabis companies through Cresco Capital Partners. She received her degree in PR & Journalism from ASU's Honors School, MBA from Georgetown University and PHD from Fundacao Gestulio Vargas. She was awarded the JFK Award for Print Journalism and the Howard Buffett Grant.
I am a fan of M1 Finance. In fact, I have my own account there where I invest in the Vanguard ETFs. I am an affiliate too. Meaning if you open an account...I get PAID. HUGE BUCKS! So, if you are going to open an account why not do so through this link? M1Finance affiliate: https://mbsy.co/BnjJ6 In fact, if YOU set up your own account and suggest M1 to others who open an account you can also make money. How much? I really don't know. But man, oh man, if people would just use low cost providers like M1 and the many others out there instead of paying huge fees, retirement would be that much closer for them. ================================ Get the PDF version of my Tax Bomb book for free follow this link. https://mailchi.mp/7e528cd3cfb3/taxbomb --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support
Welcome to Finance and Fury, The Say What Wednesday Edition This week the question is from Dan I am 21 and have about 70k in a term deposit and 5k in VHY and VGS ETFs. I am wondering whether over a period of 20~50 years I would be better diversifying into VAE or VGE and VAP or whether you'd stick to VAS and ETFs which have a franked dividend and not just potential capital gains. You have mentioned in previous podcasts bubbles, though these ETFs have much larger market caps and therefore are less likely to default. Thanks for the great question – Break down investing in ETFs, diversification issues with ETFs – Feedback loops and self-fulfilling prophecy – Global asset managers, Vanguard and iShares continue to dominate the ETF market in Australia. Account about 56% of all money invested in ETFs - BetaShares is the third-largest Low-cost passive vehicles have gained popularity on Main Street. Passive investments have now taken over nearly half of the stock market as more investors shun stock pickers and flock to index funds, according to Bank of America Merrill Lynch. Equity passive funds alone have ballooned to a more than $3 trillion market in less than 10 years, according to Morningstar Aus – largest is Vanguard – can't tell you what to invest in – but can give a breakdown and comments on them Vanguard ETFs – six mentioned in the email and Start date for each: VHY - Vanguard Australian Shares High Yield Fund – 62 shares – May 2011 - Higher FF divs VAS - Vanguard Australian Shares Index Fund – 296 shares – May 2009 – ASX300 whole index, good FF shares VGS - Vanguard International Shares Index Fund – 1,590 shares – Nov 2014 – International market access – 14% top 10 VAE - Vanguard FTSE Asia ex Japan Shares Index – 1,176 shares – Dec 2015 – 28% top 10 VGE - Vanguard Emerging Markets Shares Index Fund – 4,729 shares – Nov 2013 – still has 24% top 10 VAP – Vanguard Australian Property Securities Index Fund – 28 shares - October 2010 – 84% in top 10, large loss potential All very new investment vehicles VAS won’t provide much additional diversification if you are already invested in VHY: VAP – Doesn’t provide much diversification - 10 companies make up over 80% of the index - in it and the index lost over 70% in 2009 – VAE and VGE – almost the same investments as well except one has 3000 more companies which make up a tiny allocation Some of the largest holdings are in Communist Party run banks – China Construction Bank, industrial & commercial bank of china, etc. If you are looking for the most diversified version of Vanguard funds, they have the multi-asset ETFs available now such as the following: Vanguard Diversified Growth Index ETF (VDGR) – or Vanguard Diversified High Growth Index ETF (VDHG) - The bubble topic is about the nature of buying ETFs and how Central Banks are buying these, as they are price taking and not price making. Index Funds and Price Discovery Firstly - Central banks and Basel III have more or less removed price discovery from the credit markets Risk does not have an accurate pricing mechanism in interest rates anymore On top of this - now passive investing has removed price discovery from the equity markets If it is in the index – it is purchased – bubble in markets - due to the rise of inflows into ETFs – pushing the shares at the top in the index up further regardless of the performance of companies – Example - the bubble in synthetic asset-backed CDOs before the GFC Price-setting in that market was not done by fundamental security-level analysis - but massive capital flows based on Nobel-approved models of risk created a similar ‘if everyone is doing it’ mentality The Rise of ETFs and Market Distortion Index funds are only relatively new – 2009 to 2017 created - growth in index funds is creating a valuation distortion in the market. In one of the longest bull markets – I think a lot due to the technology platforms and apps making index investing easier and cheaper than ever - Passive phenomena is being viewed by rating agencies like Moody’s as the adoption of a new technology Investor adoption of passive low-cost investment products will continue irrespective of market environments The ETF industry has attracted almost US$3trn in new business since the start of 2009 - coinciding with one of the longest bull markets in US history Among Professional investors - Record surge into ETFs fuels fears of stock price bubble - Michael Burry, one of the first investors to call and profit from the subprime mortgage crisis started talking about this just last month Personal Example – NWH – saw the price go up by about 12% - checked the news and it was a 3.8m share purchase by vanguard as it made the ASX200 index – no other news Liquidity Risk – Further Explanation Needed The dirty secret of passive index funds -- whether open-end, closed-end or ETF -- is the distribution of daily dollar value traded among the securities within the indexes they mimic Daily Turnover and volumes In the US - Russell 2000 Index has better data on it as an example – Vast majority of shares are lower volume shares – of the 2000, 1,049 shares trade less than $5 million per day 456 shares traded less than $1 million during the day But through indexation and passive investing, hundreds of billions are linked to these shares The S&P 500 is no different -- the index contains the world’s largest shares – but 266 shares (over half) - trade under $150 million per day $150m sounds like a lot – but trillions of dollars globally are indexed to these shares Analogy of a theatre – packing more and more people into one - keeps getting more crowded, but the exit door is the same as it always was Concentration risks – fuelling bubble ASX one of the most concentrated indexed - Large-cap – Purchasing an index = 65% of funds to the top 20 shares and 40% to the top 8 shares – 8% of ASX300 is CBA alone – every purchase of the index (super funds, Raiz, etc.) = 8% inflow into CBA pushing price up The fear is that there is the potential for a liquidity squeeze in the event of a market correction or crash which will start within the Financial sector – GFC – banks lost 68% of values without the outflows of index funds - Exit door – Selling and NAV An ETF is listed on the ASX and its price will be determined by a number of factors – In theory, will always trade at it's reported net asset value adjusted for tax and dividends So the net asset value is the value of the fund - take the assets and the liabilities, and you compute a per share price – But the market price is where you're able to transact in the marketplace for the ETF. And ETFs are really structured so that the market price can be very close to the net asset value, but it could deviate a little bit over short periods of time given certain supply and demand characteristics. The reality is that an ETF, LIC etc can trade at either a premium or discount to valuation. In the event of a market correction or crash an ETF will likely trade at a steep discount to valuation as investors run for the exits – but we don’t know as ETFs haven’t gone through a mass selloff – simply working of human behaviours and myopic risk aversion – well documented The market maker will probably step in to ensure liquidity but it won’t stem the flow. The market maker, after all, has to fund the purchase by selling the ETF assets. Sale process - First NAV is the weighted average price of all the shares – but is worked out at close of trade ETF purchases have to be closed out intraday – if you do a price limit and doesn’t trade – order cancelled Example – if everyone is selling ETF – have to sell at market price to sell – take what you get – might be big discount to the actual NAV which you will find out after 4pm The concern is the untested potential for a liquidity crunch. If the market is falling and you are selling assets to fund the exit of investors then who is buying the underlying shares? Well probably the underperforming high fee active manager who is seeking to take advantage of the misallocation of price and the eventual normalisation of the market price for the assets. It Won’t End Well – passive investments are the same story again and again – very easy to sell Become a self-fulfilling prophecy (prices go up the more people buy, so people buy more) – also algorithm trading kicks in for buys - also money managers are pushing Funds into ETFs What makes it worse? the impossibility of unwinding the derivatives and naked buy/sell strategies used as part of ETFs Fundamental concept is the same one that resulted in the market meltdowns in 2008 Nobody knows what the timeline looks like – but like most bubbles, the longer it goes on, the worse the crash can be So what does work? Warren Buffet has told us all to go and buy index funds - Yet his portfolio of assets is nothing like an index fund Buffet and most wealthy investors are high conviction investor – don’t just buy shares but buys the whole company The active managers who have actually managed to outperform over longer periods of time you will probably find them to be high conviction managers with concentrated portfolios – Such as Magellan Summary An index manager will buy everything in the reference index – those shares go up It isn’t an asset allocation decision based on your own investment goals and tolerance to investment risk Michael Burry - called it a “herding behaviour” and it has reached “mania status” in price misallocation Nothing wrong with ETFs as a part of an investment portfolio – but diversification is not just the number of shares held – I use index funds as a core – but only about 20-30% - replacement of large-cap active managers who buy 50-60 shares Active Vs passive – active managers are underperforming on the large-cap side of things – Investing in active has to have a purpose – in the next correction there will be widespread deep value that has arisen with the sell-off
I am in a financial position that may seem somewhat unusual to you. You see, the IRS rewards me for my real estate investments by taxing me less. If, on the other hand, I keep my income in the bank, or invest it in traditional equities or bonds, the IRS shows me no mercy! Admittedly this is by design. I am a real estate professional. One of the great benefits to that designation is that all of my passive losses flow through my personal tax returns. In other words, all that depreciation and mortgage interest I get by investing in real estate not only builds my net worth, but SAVES me money in the form of tax mitigation. Not a bad deal right? To illustrate the power of these completely legal tax advantages, remember that with bonus depreciation even limited partners often end up with K1 losses of 50-100 percent of invested capital. Those losses add up in a hurry! With that perspective in mind, why would I EVER consider investing in anything that is not tax advantaged? Think about the returns I would need to get in order to simply break even with the tax breaks I’m getting from investing in real estate. The returns would need to be HUGE. I’m not going to get that through Vanguard ETFs! In fact, I truly believe that the only way I can get higher tax equivalent returns on capital is by investing in asymmetric risk type investments. For me, that means a little bit of bitcoin. You may think I am crazy, but I actually don’t even consider investing in bitcoin all that risky. Sure it’s volatile, but I’m pretty darn sure that 5 years down the line anyone who buys bitcoin today will be pretty happy. I’m less sure about all of the alternative coins/tokens. They may have more explosive returns or they may simply go to zero. But bitcoin going to zero?—ain’t going to happen if you ask me. Now I don’t overdo it with my bitcoin portfolio. For one, it’s important to have discipline and value add real estate is my bread and butter. In fact, I bought bitcoin with only about 5 percent of my investable assets this year. Aside from its riskier nature, buying bitcoin does not save me any money! It’s not tax advantaged. So what’s a bitcoin HODLR to do? How about “Buy, borrow, and die”? That’s the mantra of the ultra-wealthy. The idea is that you can borrow against most assets that you own and invest in something else. You don’t get taxed on your loan and you’ve got a way to create liquidity out of an asset that is sitting around waiting to appreciate. If you invest those borrowed funds into real estate, not only do you get the benefit of investing your capital in two places at once, but you also get the tax advantages! You can do this with all kinds of assets. Traditionally, the wealthy have done this with brokerage accounts and other real estate but also with gold and fine art. The good news is that these days you can even do it with bitcoin and that’s what this week’s show is all about. Zac Prince is the founder of a cutting edge company called BlockFi. BlockFi is essentially creating financial products from the cryptocurrency ecosystem including the origination of loans and even savings accounts that pay cryptocurrency in interest. In this week’s Wealth Formula Podcast, Zac tells us all about it and gives us his take on the massive infrastructure that is creeping slowly but surely into the bitcoin ecosystem. Whether or not you buy bitcoin, you are going to want to understand what’s going on in the digital ecosystem because soon it will be part of your every day reality. Don’t miss this show!
Let's get to know Codie Sanchez in today’s fun and insightful episode as she lives on the leading edge of venture capital and entrepreneurship. She is an investor, speaker and business builder. She is a partner at Cresco Capital Partners, one of the first PE funds in the legalized cannabis space. From Great To Greater Codie is a former mutual fund manager at Goldman Sachs and a consultant to Facebook, Apple, and Amazon. She earned her MBA from Georgetown University and received her Ph.D. from FGV in Brazil. Given her credentials, she is upfront about not staying long with her previous company nor working in the marijuana industry. “After a while, everybody has to graduate from that realm and go do something in the world. I was feeling like it was time.” - Codie Sanchez She started investing in cannabis privately until she saw the actual numbers and the industry growth potential. Aside from being a Venture Capitalist, she is an active advocate in lobbying for federally funded marijuana use research. “We do a lot of stuff with Vets and see them come back from the war and have PTSD. You get them on opioids or cannabis and see the changes in their lives. Its kind of contagious at some point.” - Codie Sanchez Lobbying at Washington Codie recounts her story at Washington D.C. to Lochhead as she says that Cannabis is categorized as Schedule 1—drugs that have no medicinal benefit and are highly addictive. Lochhead also shares his understanding of the issue. He says that since there is no federally funded research on the benefits, risks, problems, applications and use cases on cannabis, the country might be missing out on its potential. “So many of them don’t know about cannabis. They know what we used to think about it, like in the 70s, the 80s, but they still don’t know the fact that this is a multi-million dollar industry.” -Codie Sanchez, on meeting with legislators 40,000 Different Uses of Mary Jane Thanks to people like Codie, more established people are joining the cannabis movement. For instance, there is the UCLA Cannabis Institute, the only research organization branded by a school. They do have to get funding, though, from non-cannabis related companies. Codie further shares in this episode why she thinks the cannabis industry is a generational wealth creation event. First, its a new industry, but is an overregulated one. Second, there’s no need to create a market for it. Third, the use cases are prolific—with 40,000 different ways to utilize it. Fourth, the audience's expansion of cannabis is astounding. Cannabis is definitely not a panacea or a drug that cures everything, but research can definitely back up how it can ease certain illnesses. To hear more about venture capital in the cannabis industry and more relevant information from Codie, download and listen to the episode. Bio: Codie Sanchez is a reformed journalist, turned institutional investor to now a partner at Cresco Capital Partners, one of the first PE funds in the legalized cannabis space. Throughout her career, she has worked at the intersection of marketing and money, finding contrarian ways to invest and spread the gospel. She’s always balanced her profession with non-profit service to empower women, veterans and Latinos. She joined Vanguard ETFs in 2008 ($870B) to build out their ETF business, quite the time, then moved to Goldman Sachs Alternatives group. Following, she became an SVP at SSGA ($580B) in institutional investing tasked with a $3 billion region, finally coming to First Trust ($63B) to build the LatAm investment business from the ground up. Codie has led global teams in all asset classes, negotiating JV's, product creation and market entry across the Americas. Further, she is a board member at The Arcview Group, Magma Partners Venture Fund, Texans for Veterans. She is also a member of the free markets think tank, AEI's Enterprise Club. Codie invests in women-led startups through Plum Alley,
Our guest in this special bonus episode of The Long View podcast is Tim Buckley, chairman and CEO of the Vanguard Group, which manages over $5 trillion in assets globally. Tim took the helm at Vanguard in January 2018, succeeding Bill McNabb. Tim is a longtime Vanguard veteran, having joined the firm in 1991. Before assuming his current role, he served as Vanguard’s chief investment officer, head of its retail investor group, as well as its chief information officer. In this mini episode, which was recorded live at the 31st annual Morningstar Investment Conference in Chicago, we discuss the significance of Vanguard's recent Morningstar Award for Investing Excellence, which the firm received for exemplary stewardship. Tim also addressed how Vanguard attempts to balance growth with delivering good outcomes to clients, its capital allocation philosophy and key initiatives, the future of advice, the trend toward "free" funds, as well as the firm's recent forays into sustainable investing, among other topics. Show Notes “It’s the core of Vanguard”: What stewardship and investor-centricity has meant to the firm (0:28-1:20) Defining “client”: How Vanguard balances off the objectives of its different lines of business (1:21-2:51) Incredible scale can’t be taken for granted: Is it enough to just be a fund company? (2:52-4:15) Gazing into our crystal ball: What Vanguard looks like in 10 years and how that compares to today (4:16-5:30) Goal-setting: How Vanguard defines success and how that informs the way they run the business (5:31-6:40) The future of advice: “I can’t imagine anything but the price (for advice) coming down” (6:41-7:24) Embrace technology and personalize: Tim’s counsel to advisors who are trying to adapt to falling advice fees (7:25-8:43) “There’s no one even close to us”: What matters in a “freemium” world is the cost of the whole portfolio (8:44-10:12) Pathways to growth: The future of ESG funds and factor investing and how Vanguard tries to position these strategies to advisors and other markets (10:13-12:40) “All the money flowing to index funds--it’s not because active doesn’t work. It’s because high-cost active doesn’t work” (12:41-14:31) “You can have your cake and eat it, too, in the active ESG approach”: How to succeed with ESG investing (14:32-16:22) Best practices: How Vanguard settled on its approach to ESG investing (16:23-17:02) “We’ve looked”: Vanguard’s approach to capital investment and answering the build-vs.-buy question (17:03-18:26) “Vanguard is defined by its structure, and we’re going to keep it”: Tim on why Vanguard will never de-mutualize (18:27-19:20) References Tim Buckley, chairman and CEO, The Vanguard Group 2019 Morningstar Awards for Investing Excellence: Nominees for Exemplary Stewardship Winners of the 2019 Morningstar Awards for Investing Excellence Vanguard founder John “Jack” Bogle Vanguard’s mutual ownership structure, explained Vanguard funds snapshot page Analyst-rated Vanguard Funds Analyst-rated Vanguard ETFs “Investing Crosses the Rubicon: Free Index Funds” “Vanguard: Competitors’ Pricing Behavior is Inconsistent” “2018 Morningstar Fee Study Finds that Prices Continue to Decline” “Vanguard: Cost of Advice Could Fall Further”
Dan chats with John Robertson, author of The Value of Simple, about the trade-offs between cost and complexity in investing. Then we take an in-depth look at a new family of Vanguard ETFs that allow you to build a one-fund portfolio. For complete show notes on The Value of Simple, visit www.canadiancouchpotato.com/podcast.