Bonds: Total Market

Vanguard's ETFs offer excellent options for investors seeking both passive income and diversification. The Vanguard Value ETF, one of the largest value-oriented funds, holds mainly large-cap stocks with solid dividend payouts, keeping its top 10 holdings at around 21% of the portfolio. 

 

For a more concentrated approach, the Vanguard Mega Cap Value ETF focuses on mega-cap companies, leaning toward value-heavy sectors like healthcare and energy, which tend to fare well in economic downturns. Investors aiming for higher yield might consider the Vanguard High Dividend Yield ETF, which offers broad exposure to 537 holdings and a nearly 3% yield without overemphasizing any single sector. 

 

Although these funds have lagged the tech-driven S&P 500 recently, they have shown significant long-term growth, nearly tripling in value over the last decade. 


Finsum: These ETFs suit different needs, whether one prefers a focus on industry giants or broader diversification for consistent passive income.

 

Switching to a new broker-dealer is often a complicated process, but finding the right partner can significantly improve your business and client service. Legal guidance is essential to avoid potential pitfalls, such as contractual issues or ownership disputes over client relationships. 

 

Developing a comprehensive transition plan will help organize client accounts and ensure the process runs smoothly. Engaging your team early allows for shared responsibility and clear goals throughout the transition. 

 

It’s also a good time to reassess your client base, streamlining relationships and services to align with your current practice. Finally, preparing client data properly and crafting a clear communication plan can help ensure a smooth and positive transition for everyone involved.


Finsum: Data, in particular, can be critical with the advances in information and technology.

Around two-thirds of active bond funds outperformed their average passive peers during the 12-month period ending June 30, according to Morningstar's latest Active/Passive Barometer. The report, which examines the performance of over 8,000 funds across various categories, highlighted that intermediate core bond funds led the way, beating passive funds 72% of the time. 

 

These active bond funds benefitted from narrowing credit spreads and inflation that kept interest rate cuts on hold. However, over a 10- and 15-year horizon, only 45.5% and 15.9% of these funds outperformed, respectively.

 

Additionally, actively managed real estate funds outperformed their passive counterparts 66% of the time over the same 12 months, with U.S. and global real estate funds seeing strong short-term success. 

 

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