Tag Dollar-Cost Averaging

Vanguard’s Shift Towards a More Active Approach

Vanguard, long known for its passive, index-tracking investment strategies, is subtly shifting its approach. While still heavily committed to low-cost index funds and ETFs, they’re increasingly incorporating active management strategies, particularly in areas where they see opportunities for enhanced returns and better risk management. This isn’t a wholesale abandonment of their core philosophy, but rather a nuanced evolution driven by market conditions and technological advancements.

Focus on Factor-Based Investing

A key component of Vanguard’s evolving strategy is a growing emphasis on factor-based investing. This involves identifying specific characteristics (factors) of stocks, such as