COMPANY NEWS DECEMBER 3, 2020Back to top45612943
Commentary by Karin Risi, Vanguard Managing Director, Retail Investor Group
Choosing Vanguard means partnering with a different kind of investment company—we’re client-owned. As a client-owner, you own the funds that own Vanguard. This unique structure allows us to prioritize your needs and leads us to advocate on your behalf and on behalf of all investors.
As investors, your needs have evolved, and it’s become more crucial for us to understand your behavior so we can better help you achieve investment success. Vanguard has been researching investor behavior for decades. This year, we’ve expanded our research and thought leadership with the introduction of How America Invests—a comprehensive look at individual investors and an evolution in our understanding of investor behavior.
We’ve gathered these research insights informed by more than 5 million retail households. Publishing a study of this scope is a natural extension of our passion for developing a deeper understanding of investor behavior. How America Saves, which explores the investing behavior of employer-plan participants, is in its 19th year of publication.
We’re committed to finding new ways to educate, inspire, and engage investors like you. We hope How America Invests accomplishes this goal.
What have we learned?
No two investors are alike. However, studying investing behavior helps us establish benchmarks and identify trends. Here’s a snapshot of what our research tells us: As Vanguard investors, most of you allocate some portion of your money to stock funds, regardless of your age. Our research also affirms more of you choose index funds over actively managed investments. Finally, the study confirms your steadiness, as you’ve kept relatively stable asset allocations and rebalanced your portfolios accordingly.
What you’ve taught us will help more investors succeed
Benchmarks and trends are useful tools. But what’s most important is that we can use the information to enable investors like you to make the best decisions for their goals. You’ve given us valuable insights that can help ensure investors have the right allocation of stocks at every age, the appropriate mix of index and active strategies, and the right level of support when rebalancing and trading. To underscore this point, we’ve summarized key trends in an Investor Action Guide and included steps all investors can take as they manage their portfolios.
As investors, you’re remarkable. You’re more resilient than reactionary, staying the course whether we’re experiencing robust market growth or economic uncertainty. How America Invests tells your story and how you apply our investing principles—goals, balance, cost, and discipline—to your investing lives.
We believe this information will inspire others to analyze their investing strategies and take action, whether that means staying the course, adjusting their asset mix, or pursuing advice. On a larger scale, we also hope this research sparks meaningful dialogue in the industry, prompting improvements to the products and services available to all investors.
Thank you for helping us empower more investors to increase their chance for investment success.
Karin Risi joined Vanguard in 1997 and first served as an analyst in both the Portfolio Review and Corporate Strategy units. Karin later held leadership roles in Vanguard’s Institutional Asset Management and Retail High Net Worth businesses before leading the design and launch of Vanguard’s Personal Advisor Services business. Karin was appointed as the head of our Retail division in 2015.
As Managing Director, Karin oversees the business strategy, client experience, operations, and advisory service for our eight million U.S. individual investors. During her tenure, she’s led Retail through a large-scale transformation focused on revamping the digital client experience and driving the continued success of our advice platform. Outside of Vanguard, Karin serves as a Board Trustee for Vanguard Charitable, a national donor-advised fund sponsor. She’s also an Investment Committee member at the Barnes Foundation and a member of the Dean’s Advisory council for Villanova University’s School of Business, where she earned a B.S. in finance and an M.B.A.