Core Insights - A flexible investment strategy allows investors to adapt their portfolios to changing market conditions, focusing on intrinsic value and long-term potential rather than traditional growth or value classifications [2][4][28] Market Performance - The U.S. large-cap equity market, particularly the Russell 1000® Growth Index and S&P 500® Index, has experienced exceptional performance, driven by a narrow group of stocks known as the "Magnificent Seven" and AI-related companies [4][31] - The concentration of gains among a small number of mega-cap stocks has skewed the representation of the broader market, significantly influencing index performance [4][6] AI and Technology Sector - The excitement surrounding artificial intelligence has propelled significant gains, with companies like NVIDIA seeing a 171.2% increase in 2024 due to their advanced semiconductor technology [5][31] - The dominance of the AI trade has made it challenging for active equity strategies to match market performance, highlighting the risks of index concentration [6][12] Investment Strategy - The Brown Advisory U.S. Flexible Equity strategy employs a value philosophy across both growth and value equities, allowing for dynamic adjustments to capitalize on market dislocations [8][28] - The investment team focuses on rigorous research and a disciplined approach to identify undervalued companies, emphasizing the importance of intrinsic value over short-term trends [24][27] Risk Management - Active managers can mitigate risks through diversification and continuous monitoring of investment theses, ensuring that capital is allocated to the most attractive opportunities [15][27] - The current lack of diversification in indices presents hidden risks, particularly for passive investors, as market concentration can lead to significant vulnerabilities [14][12] Long-Term Value Creation - The investment philosophy prioritizes long-term value creation by identifying "bargain moments" in share prices, often resulting from temporary challenges or misperceptions in the market [30][28] - Companies like Taiwan Semiconductor Manufacturing Company (TSM) are highlighted as foundational players in the AI and high-performance computing sectors, with opportunities arising during market sell-offs [23][24]

Key Points The S&P 500 is the best way to get overall exposure to the broader U.S. economy. Investing in mid- and small-cap stocks gives you exposure to the additional opportunities. A well-rounded portfolio should include international stocks, reflecting the global economy. 10 stocks we like better than Vanguard S&P 500 ETF › One of the key pillars of investing has always been diversification. It's like the old saying: "Never put all your eggs in one basket." This is particularly true when it co ...

Key Points Buffett will soon retire as CEO of Berkshire Hathaway after decades of success. The company's portfolio illustrates some of Buffett's key philosophies and best stock ideas. Buffett's decision to accumulate so much cash in recent years will be a fascinating topic years from now. 10 stocks we like better than Berkshire Hathaway › Wall Street will soon enter a new era. That will occur in January, when multi-billionaire and investing legend Warren Buffett retires from his post as CEO of B ...

Core Insights - Both the SPDR Portfolio Developed World ex-US ETF (SPDW) and the Vanguard FTSE Developed Markets ETF (VEA) provide investors with exposure to developed international equities, excluding the U.S. [1] Cost & Size Comparison - Both SPDW and VEA have an expense ratio of 0.03% [2][3] - As of October 28, 2025, SPDW has a 1-year return of 21.4% while VEA has a return of 21.2% [2] - VEA offers a slightly higher dividend yield of 2.7% compared to SPDW's 2.6% [3] - Assets Under Management (AUM) for SPDW is $32.0 billion, while VEA has a significantly larger AUM of $250.8 billion [2] Performance & Risk Comparison - Over the past five years, SPDW experienced a maximum drawdown of -30.20%, while VEA had a drawdown of -29.71% [4] - A $1,000 investment in SPDW would have grown to $1,546 over five years, compared to $1,555 for VEA [4] Portfolio Composition - VEA holds approximately 3,873 stocks and is diversified across sectors such as Financial Services (24%), Industrials (19%), and Technology (11%) [5] - SPDW covers 2,405 holdings with a similar sector allocation: Financial Services at 23%, Industrials at 19%, and Technology at 10% [6] - VEA's larger asset base and stock count may appeal to investors seeking maximum diversification [6] Long-term Performance - Over the past decade, VEA has achieved a total return of 115.6%, while SPDW has a total return of 114.4% [9] - In comparison, the Vanguard 500 Index Fund ETF has delivered a total return of 291% over the same period, highlighting the relative underperformance of both international ETFs [10]

Core Insights - The iShares Core MSCI EAFE ETF (IEFA) and the iShares MSCI Emerging Markets ETF (EEM) offer different approaches to global equity exposure, with IEFA focusing on developed markets outside the U.S. and Canada, while EEM targets emerging economies [1] Cost & Size Comparison - IEFA has a significantly lower expense ratio of 0.07% compared to EEM's 0.72% [2] - As of October 27, 2025, IEFA's one-year return is 19.2%, while EEM's is 22.9% [2] - IEFA has a higher dividend yield of 2.9% compared to EEM's 2.1% [3] - Both ETFs have similar beta values, with EEM at 1.06 and IEFA at 1.07, indicating comparable volatility [2] - Assets under management (AUM) for IEFA stand at $159.2 billion, while EEM has $21.2 billion [2] Performance & Risk Analysis - Over the past five years, EEM experienced a maximum drawdown of -39.82%, while IEFA's maximum drawdown was -30.41% [4] - A $1,000 investment in IEFA would have grown to $1,537 over five years, compared to $1,244 for EEM [4] Portfolio Composition - IEFA holds 2,611 stocks, with significant allocations in financial services (22%), industrials (20%), and healthcare (10%) [5] - Major holdings in IEFA include ASML Holding NV, SAP, and Nestlé [5] - EEM consists of 1,198 holdings, with a heavier focus on technology (25%) and financial services (23%) [5] - Top allocations in EEM include Taiwan Semiconductor Manufacturing, Tencent Holdings, and Alibaba Group Holding [6] Investment Preference - IEFA is favored due to its lower expense ratio, higher dividend yield, and better historical performance compared to EEM [7][9] - EEM's top five holdings constitute over 25% of its portfolio, indicating a lack of diversification, with Taiwan Semiconductor Manufacturing alone accounting for 12% [8]

Core Insights - The Vanguard Information Technology ETF (VGT) and the Technology Select Sector SPDR Fund (XLK) are compared for their performance, diversification, cost, and risk metrics [1] Cost & Size - XLK has a lower expense ratio of 0.08% compared to VGT's 0.09% [2][3] - As of October 27, 2025, XLK's one-year return is 29.9%, while VGT's is 30.6% [2] - XLK offers a dividend yield of 0.5%, slightly higher than VGT's 0.4% [3] - XLK has an AUM of $96.4 billion, while VGT has $128.3 billion [2] Performance & Risk Comparison - Over five years, XLK has a max drawdown of 33.56%, while VGT's is 35.08% [4] - A $1,000 investment in XLK would grow to $2,681 over five years, compared to $2,621 for VGT [4] Holdings & Diversification - VGT holds approximately 310 stocks, primarily in technology, with a small 1% in communication services [5] - XLK is more concentrated with only 68 holdings, focusing exclusively on technology [6] - Both funds have significant investments in NVIDIA, Apple, and Microsoft, but with different weightings [6] Historical Performance - Over the past five years, XLK has delivered a total return of 181.8%, while VGT has produced a total return of 174.3% [7] Index Tracking - VGT tracks the MSCI U.S. Investable Market Information Technology 25/50 index, which includes large, medium, and small U.S. tech companies [8] - XLK tracks technology stocks limited to those in the S&P 500 index [8]

Core Insights - Most Americans are focused on improving their financial situation and building wealth during the current presidential term [1] Financial Foundations - Establishing strong financial foundations is essential for wealth growth, which includes controlling spending, paying off high-interest debt, and setting up an emergency fund [3][4] - Automating savings and investments is recommended as a strategy to ensure consistent financial growth, often referred to as "paying yourself first" [4] Investment Strategies - Once financial stability is achieved, broad-based investing in low-cost index funds and ETFs is suggested as a viable path for average Americans [5] - The S&P 500 has historically provided annual returns of 8% to 10%, making it a reliable investment choice despite market fluctuations [5] Consistent Investing - Steadfast investing is emphasized over market timing, with recommendations to utilize workplace retirement plans, IRAs, and brokerage accounts [6] - Taking advantage of employer matching contributions is highlighted as a way to maximize investment returns [6] Diversification and Risk Management - Given the economic challenges such as tariffs and inflation, diversification is deemed crucial for protecting investments [7] - A balanced portfolio should include a mix of stocks, bonds, Treasury funds, and high-yield savings accounts to mitigate risks [7]

The calendar page has just turned to November, meaning the Holiday Season has begun. At least in the United States. I know my friends in Canada had their Thanksgiving Day during October, a holiday that focuses more on an actual day of giving thanks than the day of gluttony and sloth it has become south of the Canda/US border. But I digress. Since time will now accelerate into the New Year, what market sector stands out to me as we close out 2025? Keep in mind I’ve spent my life studying the commodity comp ...

Core Insights - The Vanguard Consumer Staples ETF (VDC) and the iShares US Consumer Staples ETF (IYK) are both focused on leading U.S. consumer staples companies, but they differ in cost, diversification, and portfolio tilt [1] Cost & Size Comparison - IYK has an expense ratio of 0.38%, while VDC is more affordable at 0.09%, making it cheaper by 0.29 percentage points [2][3] - As of October 27, 2025, IYK has an AUM of $1.3 billion, whereas VDC has a significantly larger AUM of $8.5 billion [2] Performance & Risk Metrics - Over the past five years, IYK has a max drawdown of -15.05%, compared to VDC's -16.54% [4] - A $1,000 investment in IYK would have grown to $1,417 over five years, while the same investment in VDC would have grown to $1,344 [4] Holdings Overview - VDC consists of 103 holdings, primarily in the consumer defensive sector (98%), with major positions in Walmart, Costco, and Procter & Gamble [5] - IYK is more concentrated with 55 holdings and includes a 10% allocation to healthcare stocks, featuring top holdings like Procter & Gamble, Coca-Cola, and Philip Morris International [6] Total Return Analysis - Over the past five years, IYK delivered a total return of 57%, while VDC provided a total return of 51% [8] - In a 10-year timeframe, IYK's total return was 132%, outperforming VDC's 110% [9] Dividend Performance - The latest quarterly dividend payment for VDC was 28.1% lower than five years ago, indicating disappointing cash flow growth for investors [10] - Conversely, IYK's latest dividend payment was 108% higher than the payout from a year earlier, showing positive growth in dividends [10]

This article provides an update on the monthly moving averages we track for the S&P 500 and the Ivy Portfolio after the close of the last business day of the month. The Ivy Portfolio The Ivy Portfolio is based on the asset allocation strategy used by endowment funds from Harvard and Yale. It is an equally weighted portfolio constructed with 5 ETFs that feature a mix of different asset classes. By allocating across different asset classes, diversification is achieved, and risk is reduced. The different ass ...