Weekly Wrap: Vanguard's New Dividend Indexes, Stocks to Avoid, and More
We recap the week on Morningstar.com and note the most popular stocks, funds, and exchange-traded funds.
|Editor's note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it.|
We tend to be glass-half-full, practical types at Morningstar. Sure, we'll raise red flags when we think particular investments are overbought or not completely understood--ARK Innovation and SPACs this earlier year, for instance--and provide perspective. But we're not alarmists. At our core, we believe that thoughtful, low-cost, long-term investing is a great way for anyone to accumulate wealth and achieve financial independence. We like to think that approach embodies smart investing.
As a result, much of our content each week focuses on the positive--great investing ideas, sensible portfolio strategies, and level-headed perspective. Along those lines, this week we shared the 2021 nominees for the Morningstar Awards for Investing Excellence. Each year, we honor outstanding portfolio managers, promising up-and-comers, and asset managers with a history of putting investors first. (We'll announce this year's winners next week.) We also spotlighted value stocks with more room to run, accounts for heavy savers, and a stock that top managers like.
But that doesn't mean we think everything is sunshine and rainbows. We recognize, for instance, that the market today appears frothy, meaningful yield is tough to find, and the financial landscape isn't as equitable as it may seem. To that end, this week we isolated a dozen stocks to avoid, uncovered high-yield bond fund managers making bolder bets, and streamed a live event (now available on demand) discussing how investors from the Black community can overcome their unique financial challenges.
We think our editorial content is pragmatic--a calm voice of reason. We hope you think the same.
And speaking of pragmatic, happy Father's Day to all the dads, granddads, uncles, and others who are making a positive impact on the children in their lives.
12 Stocks to Avoid
These stocks are all extremely overvalued by our standards--and carry a good deal of uncertainty, too.
Dissecting Vanguard's New Dividend Indexes
A pair of popular Vanguard dividend funds are getting new indexes, but their approach remains the same.
The Best Accounts for Heavy Savers
An HSA's tax benefits are hard to beat, but there are other options as well.
Looking Under the Hood at Vanguard Charitable
It's arguably the best donor-advised fund affiliated with an asset-management firm for donors who plan to maintain higher account balances.
Cryptocurrency: How Advisors Can Get Up to Speed
Education and resources so your clients don't end up knowing more than you.
One Stock That Top Managers Like
Several of our Ultimate Stock-Pickers put new money toward this name last quarter.
The Time Is Right for Aftertax 401(k) Contributions
The prospect of higher taxes and the uptake of in-plan conversions make this maneuver a no-brainer for heavy savers who have access to it.
Get Financial Advice First, Investment Advice Later
Investors with more human than financial capital should seek advice on their entire financial life and not just investments.
Morningstar Awards for Investing Excellence--Outstanding Portfolio Manager Nominees
Four portfolio managers earn accolades for industry achievements.
Morningstar Awards for Investing Excellence: Exemplary Steward Nominees
These three firms have long track records of putting investors' interests first.
Morningstar Awards for Investing Excellence--Rising Talent Nominees
Three managers to keep an eye on.
Some High-Yield Managers Are Making Bolder Bets
The lowest-rated bonds appear to be trading in more dangerous territory lately.
5 Value Stocks With Room to Run
These wide-moat stocks are currently undervalued.
ViacomCBS Is a Rare Value
It's poised to capitalize on streaming trends and is trading well below what we think it's worth.
How to Invest in Disruptive Technology Stocks
This type of investing is not for the faint of heart, but we still see value in several of these companies.
2 Upgraded Stocks
This month we upgraded the Morningstar Economic Moat Ratings of two companies to wide--and downgraded the rating of another.
Fed Sees Rate Hikes Likely by 2023
We expect to update the rate outlook in our banking models to incorporate rate hikes.
Supreme Court Ruling to Uphold ACA
This decision adds certainty to related health insurance programs.
What Biden's Proposal Means for REIT Investors
We think the proposed elimination of the 1031 exchange will have limited impact on U.S. REITs.
Sonal Desai: Navigating Historically Low Yields and Stretched Valuations
The CIO of Franklin Templeton's fixed-income team assesses the risks and rewards of bonds, the economic recovery's durability, and the future of monetary and fiscal policies.
What Are Green Bonds?
How to consider whether they might be a good fit for your portfolio.
Will ETFs Survive Mass Customization?
CIO of Avantis Investors Eduardo Repetto discusses the firm's investment strategies and the future of ETFs, direct indexing, and custom indexing.
Fund Flows Suggest Inflation, Interest Rates on Investors' Minds
Value-equity, TIPS, and bank-loan funds garner interest during May.
Why You Should Stop Taking Investment Advice From Social Media
A boom in young and overconfident investors has led to the rise of investment influencers on social-media platforms, but following their advice blindly is not a solid strategy.