Displaying items by tag: vanguard

Monday, 06 December 2021 19:44

Charles Schwab Gets into Direct Index Investing

Direct Indexing is the process of holding the stocks in the weights of the underlying Index, rather than buying an ETF that tracks an index, and this new opportunity is being adopted by financial heavyweight Charles Schwab and will be available to investors. Starting with the large-cap Schwab 1000 Index, S&P Small Cap 600 Index and MSCI KLD 400 Social Index, Schwab will be available to mix and match to customize a portfolio to hit the investor’s exact needs. However, this option won’t be available to just any investor. The indexing platform will require a $100,000 account size. Adoption of direct index investing is one piece of Schwab’s expansion into personal investing, that goes hand-in-hand with environmental, social, and governance investing and other thematic investing.


FINSUM: Schwab is the latest of Vanguard, Fidelity, BlackRock and Morgan Stanley to jump into index investing. However Schwab’s pricing format is not revealed and its advantages over a low fee ETF are not yet clear.

Published in Wealth Management
Monday, 04 October 2021 14:53

Best Models Ranked, 1-5

(New York)

Morningstar has become a leader in model coverage. The firm covers several hundred models and gives each multiple ratings. As the model world continues to grow, this is getting more and more useful. Here is our third installment of our coverage of Morningstar’s rankings, with the top 5 covered. The rankings: #5 is American Funds Growth (silver rating); #4 is American Funds Growth & Income (silver); #3 is American Funds Income; #2 is Vanguard Core (gold); and #1 is BlackRock Target Allocation ETF (gold).


FINSUM: There is a pretty low diversity of providers in the top 15, but this speaks to the expertise a handful of firms have developed in this space.

Published in Wealth Management
Tuesday, 28 September 2021 20:43

The Best Model Portfolios Ranked, 6-10

In our continued coverage of Morningstar’s top model portfolios, today we are featuring those ranked 6-10. Morningstar is soon going to double the coverage of the growing model portfolio universe, which is great news for advisors having trouble deciding on which to choose. Without further delay, here are the rankings. Number 10: Vanguard S&P (Silver rating). Number 9: Vanguard Russell (Silver rating). Number 8: Vanguard CRSP (Silver rating). Number 7: American Funds Tax Aware Income (Silver rating). Number 6: American Funds Tax Aware Growth and Income (Silver rating).


FINSUM: Well the list isn’t very diverse in terms of managers, but the Russell model from Vanguard looks like an interesting way to play small caps. Additionally, given Biden’s proposals, tax aware income would be a wise strategy in which to take a holistic approach.

Published in Eq: Total Market
Wednesday, 22 September 2021 17:39

The Top 15 Model Portfolios, 15-11 ranked

(New York)

Firstly, some good news for advisors, Morningstar has announced it is doubling its analyst coverage of models next year from a current 250. Within that coverage, advisors can also find the top 15 models according to Morningstar. Here are those ranked 15-11. Number 15: T. Rowe Price Active, number 14: Dimensional Tax-Sensitive, number 13: Dimensional Core Wealth, number 12: Fidelity Target Allocation Index-Focused, number 11: BlackRock Target Allocation Tax-Aware ETF.


FINSUM: A nice diverse group of models with a lot of different focus areas. Great start for further research.

Published in Eq: Total Market
Wednesday, 25 August 2021 19:34

Here are Morningstar’s Top Model Portfolios

(New York)

Morningstar has added a lot of coverage to their model portfolio universe this year. Earlier in 2021 they expanded their coverage of ratings to 1500 model portfolios, an increase of 50%. Of all those funds reported on, only two of them took home their coveted gold rating: the Vanguard CORE series and the BlackRock Target Allocation ETF. Vanguard was noted as having highly diversified index funds and rarely making portfolio changes. Other funds that got acclaim, such as their silver rating, include American Funds Growth & Income and the American Funds Tax Aware Growth & Income series.


FINSUM: The world of model portfolios has grown nearly as dizzying as that of ETFs so these Morningstar guides are a big help.

Published in Eq: Total Market
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