Investing Insights

What’s fueling Wall Street’s optimism? While geopolitical tensions between the US and Iran are dominating headlines, US stocks recently hit an all-time high. The global oil shock is just one major disruption to rattle investors before receding this year. The enthusiasm for the artificial intelligence boom also waned in early 2026. So, what should investors make of the market’s fluctuating mood? Tom Lauricella is the global markets editor for Morningstar Inc. and the editor of Smart Investor newsletter. What War? US Stocks Hit Record Highs   On this episode: 00:00:00 Welcome 00:01:20 Markets’ Response to the Iran War 00:02:40 Why Stocks Hit Record Highs Despite the Oil Shock 00:04:50 Earnings Season and Investor Sentiment 00:05:49 Big Tech Crosswinds and the Bond Market 00:09:04 Concerns About Private Credit Markets 00:11:07 Inflation, the Fed, and Leadership Transition   Watch more from Morningstar: Vanguard Wrote the Playbook for Success. Now, It Must Evolve to Stay on Top Vanguard Is Entering a New Era. C

Vanguard redefined investor-first for the better, and it’s aiming to maintain that reputation. Vanguard revolutionized passive investing when it created the first retail index fund. The behemoth asset manager continues to attract swells of everyday investors and money with headline-making fee cuts that put pressure on rivals to follow suit. But Vanguard is also seeking to develop an edge in new areas. It’s going full force on active bond ETFs, for example, and creating a target-date trust series to provide retirees the security of a predictable income. This week’s episode is the second of a two-part series examining what’s going on with Vanguard in 2026. Dan Sotiroff, associate director of US passive strategies research for Morningstar, covers Vanguard. Vanguard Is Entering a New Era. Can It Keep Winning for Another 50 Years? On this episode: 00:00:00 Welcome   00:01:40  Vanguard's Growth: Challenges of Doubling Its Client Base  00:03:28 Vanguard's Evolving Leadership   00:06:15 Fund Fee Cuts and Revenue Impa

Will Vanguard’s next 50 years live up to its first half century? The popular investment firm counts millions of everyday investors among its clients. Vanguard CEO Salim Ramji joined the firm from its rival, BlackRock. Ramji is influencing Vanguard’s direction while keeping the overall mission intact. But the company continues to evolve under the new leadership, with a greater emphasis on advice and the launch of new funds. This episode is the first of a two-part series examining what’s going on with Vanguard in 2026. Dan Sotiroff, Vanguard analyst and the associate director of US passive strategies research for Morningstar, joined Investing Insights. Vanguard Investors Cleaned Up https://www.morningstar.com/funds/vanguard-investors-cleaned-up On this episode:   00:00:00 Welcome 00:01:28 Vanguard’s New Era Under CEO Salim Ramji 00:02:56 Vanguard Splits Into Two Investment Advisors 00:07:17 Analyst’s Thoughts on the Firm’s SEC Scrutiny and Fine 00:10:03 Seeking ETF Share Class Approval for Active Funds 00:12:01

Too many funds and stocks in a portfolio can create clutter and make rebalancing time-consuming. Allocation funds such as balanced funds can make it easier to stay diversified and invested during market volatility. That’s because these funds automatically rebalance, moderating big gains and losses. And the funds can provide exposure to more than one security type and market. Russ Kinnel, senior principal of ratings for Morningstar and editor of Morningstar FundInvestor newsletter, discusses his list of the best balanced and allocation funds. Subscribe to Morningstar FundInvestor newsletter. On this episode: 00:00:00 Welcome 00:00:48 Balanced funds and market volatility 00:01:18 Who allocation funds are designed for 00:03:30 Foreign exposure in Vanguard Global Wellesley Income fund 00:04:40 Dividend income focus at Vanguard Global Wellington and American Funds Capital Income Builder funds 00:05:22 Inflation‑protection strategies in Pimco and T. Rowe Price funds 00:07:45 Key takeaways on balanced and allocation

Active management can still win in the bond market. Opportunities abound for active managers to best their passive peers and benchmarks. And here’s why: they have access to tools, asset classes, and flexibility that their competition does not. Right now, the bond market is ripe for them to succeed. A deep dive in Morningstar Magazine’s first quarter 2026 issue makes the case why everyday investors should consider adding active bond funds to their portfolio. Eric Jacobson, senior principal of fixed-income strategies for Morningstar, and Maciej Kowara, principal of fixed income strategies for Morningstar, co-authored the article. Subscribe to Morningstar Magazine to read independent investment research for free. On this episode: 00:00:00 Welcome 00:01:33 Why Active Management Still Works in Bonds 00:02:25 Who Trades in the Bond Market 00:03:18 Finding Inefficiencies in Fixed Income 00:04:26 When Passive Bond Funds Can Hurt Investors 00:06:01 How to Spot a Good Active Bond Fund 00:08:10 What Gives Active Manager

The stock market has cooled on stocks caught up in the whirlwind of artificial intelligence. Fears over whether AI will disrupt a variety of sectors have triggered big sell-offs. Morningstar equity analysts have investigated 132 companies to determine whether that’s the case. They have concluded that AI is not a universal destroyer. The team thinks investors should sort through the wreckage and find newly cheap companies with enduring competitive advantages. Eric Compton, director of equity research for the technology sector at Morningstar, tells you where to look. Moat Ratings Guidebook Amid AI Disruption  On this episode: 00:00:00 Welcome 00:01:28 What are Moats, and How Does Morningstar Use Them? 00:04:11 In-Depth Analyst Review of 132 Companies 00:06:27 Why Cybersecurity Holds Up 00:10:02 Why Design Software Looks Resilient 00:13:10 How Financial Data Benefits From AI 00:15:32 Finding Opportunity After AI Selloffs     Watch more from Morningstar: 2 Cautionary Tales from Private Equity and Private Credit M

Two high-profile cases in the public-private markets are testing boundaries and investors. ERShares Private-Public Crossover ETF’s stake in illiquid holdings, including SpaceX, has apparently run afoul SEC rules. Meanwhile, a high-flying alternative assets manager has changed the rules for returning investors’ cash from one of its funds. And Blue Owl Capital is now facing backlash. Lessons From a Private Markets Bust: Why This ETF’s Investors Missed Out on SpaceX Gains  Subscribe to the Public Meets Private newsletter.  On this episode: 00:00:00 Welcome 00:01:24 How XOVR ETF Differs From Typical ETFs 00:02:11 XOVR ETF Performance Versus Broader Stock Market 00:02:48 Why XOVR’s SpaceX Stake Swung Sharply 00:09:56 Blue Owl Capital’s Origins and Current Problems 00:13:25 Who Invests in Blue Owl’s Direct Lending Funds 00:18:09 Investor Lessons From Blue Owl’s Redemption Halt Watch more from Morningstar: Are You Ready for Tax Day? Here’s What You Need to Know Before You File Avoid This IRA Distribution Error to Pr

Tax day is quickly approaching, and it’s time to get organized. New tax rules might make it worth your while to itemize rather than take the standard deduction this year. And don’t just file away your 1099 forms—they can offer valuable insight into your portfolio’s tax efficiency. Christine Benz, Morningstar’s director of personal finance and retirement planning, discusses what you need to consider before, and after, you file. Morningstar’s Tax-Planning and IRA Resources for 2026 On this episode: 00:00:00 Welcome 00:01:15 The "Procrastination Penalty" of Last-Minute IRA and HSA Contributions 00:02:35 How to Decide Whether to Itemize or Claim the Standard Deduction 00:04:18 Tips for Itemizing 00:05:37 Other Deductions You May Qualify For 00:07:45 Insights from Your 1099 Forms: Dividends  00:10:40 Insights from Your 1099 Forms: Capital Gains 00:09:39 Insights from Your 1099 Forms: Tax-Exempt Interest 00:12:35 How to Avoid Overpaying Your Taxes   Watch more from Morningstar: Avoid This IRA Distribution Error to

A distribution from your traditional IRA could cost you if you’re not aware of your responsibilities. Many investors are saving up for their retirement in workplace accounts like 401(k)s. Those administrators handle tasks that IRA custodians don’t. And it’s up to you to take charge and keep track of your hard-earned money, so you’re not taxed twice. Denise Appleby is known as “The IRA Whisperer.” The Morningstar contributor has written about how to protect your IRA from costly mistakes. Don’t Pay Taxes Twice: Here’s How to Save Thousands on IRA Distributions https://www.morningstar.com/personal-finance/dont-pay-taxes-twice-heres-how-save-thousands-ira-distributions On this episode: 00:00:00 Welcome 00:01:28 What is a Traditional IRA and How It’s Funded 00:02:29 How IRA Withdrawals Are Taxed When Accounts Hold Taxable and Tax-Free Dollars 00:05:36 What IRA Custodians Don’t Track and Why Investors Should  00:09:05 What to Check on Form 1099‑R and Why Form 8606 Matters 00:12:02 How to Fix IRA Mistakes 00:13:44 W

The 60/40 portfolio has proven it’s here to stay, but it can benefit from a refresh like other classics. The total portfolio approach refines the 60/40. It takes a closer look at the components of the plain-vanilla portfolio and considers how risky they are. The goal is to help investors stay disciplined as market conditions change for the better or worse. Jason Kephart has written about the total portfolio approach. He’s a senior principal of multi-asset  manager research for Morningstar. How a Total Portfolio Approach Can Improve the 60/40 Portfolio  Morningstar’s Tax-Planning and IRA Resources for 2026 On this episode:  00:00:00 Welcome 00:01:20 Total Portfolio Approach vs 60/40 Portfolio 00:01:52 How Growth and Stability Work 00:03:30 Why High-Yield Bonds Wouldn’t Go into Stability 00:04:30 Stocks That Might Be Better Suited for Stability than Growth 00:06:52 Challenges of the Total Portfolio Approach 00:08:49 How Investors Can Use This Strategy Watch more from Morningstar: Why REIT ETFs Still Work as Rea

The struggle of brick-and-mortar real estate has extended into investment portfolios. Elevated inflation and high interest rates have weighed on the real estate sector over the past few years. Real estate investment trusts or REIT ETFs have not been spared. Yet these exchange-traded funds are popular among income investors. They generate cash and can help diversify a portfolio. So, where do they fit in yours? And which REIT ETFs do Morningstar analysts consider top picks? Dan Sotiroff is the associate director of US Passive Strategies for Morningstar. Dan is also the editor of Morningstar’s ETFInvestor newsletter.Subscribe to Morningstar’s ETFInvestor newsletter. https://newsletters.morningstar.com/On this episode:00:00:00 Welcome00:01:26 Basics of REIT ETFs 00:04:34 Active vs. Passive REIT ETFs00:06:03 REIT ETFs’ Performance vs US Stock Market00:09:20 Cutting the Tax Bill on REIT ETF income  00:10:06 Top REIT ETFs From Vanguard & Schwab00:13:48 Key Takeaways for Income Investors Watch more from Morningst

Thanks to its tax benefits, your IRA can be a powerful tool to optimize your portfolio. Investment firms often see a big influx of new contributions into individual retirement accounts in the early part of each year as investors rush to meet the April 15 deadline. If you’re one of the many investors adding new funds to your IRA, Morningstar’s director of personal finance and retirement planning Christine Benz has some ideas on how to make the most of those contributions and improve your portfolio in the process.How to Get the Most Out of Your IRA ContributionsOn this episode: 00:00:00 Welcome00:01:16 2026 IRA Contribution Limits00:01:45 How to Decide Between a Traditional and Roth IRA00:03:52 Stock Investing Mistakes to Avoid With Your IRA00:05:20 How to Invest Your IRA When You're Early in Your Career00:08:13 How to Assess Your IRA in the Middle of Your Earning Years00:10:23 The Advantages of Non-US Stocks and How to Diversify Your IRA00:14:30 How to Derisk Your Portfolio as You Approach Retirement00:16:47 R

merging-market funds will have a tough act to follow in 2026. The category racked up big gains last year following small returns for years. And a mix of factors like trade tensions prompted many investors to shift their dollars outside the US. Should you add emerging-market funds to your portfolio? And which ones were winners or losers? Morningstar’s senior principal of ratings Russ Kinnel dug into the data. The editor of the FundInvestor newsletter is here to tell you want he found.Subscribe to Morningstar’s FundInvestor newsletter.On this episode:00:00:00 Welcome00:01:20 Why Emerging‑Market Funds Surged After Years of Sluggish Returns00:02:29 Market Shifts of Leadership in Asia00:03:36 2025’s Winning Emerging-Market Funds00:05:08 2025’s Losing Emerging-Market Funds00:09:34 What’s Next for Emerging‑Market Funds in 2026?00:10:21 How Fidelity Contrafund’s Will Danoff Built a Successful Stock-Picking Record00:13:38 What Everyday Investors Can Learn from Danoff Watch more from Morningstar:How New Retirees Can Sp

If you’re newly retired or will join the ranks soon, it’s time to think about how you plan to spend your nest egg. Morningstar researchers are helping new retirees figure out where to begin. The recently published State of Retirement Income report concluded that the starting safe withdrawal rate for people beginning their retirement in 2026 is 3.9%. That number might appear low. However, the team has analyzed several strategies to lift it to almost 6%. Morningstar portfolio strategist Amy Arnott has investigated the data and joined the podcast to explain flexible withdrawal strategies.How Much Can You Spend in Retirement? Here’s Your Starting Safe Withdrawal Rate for 2026  https://apple.news/ALEEtAf1FTAm7WUFGvYvXVQOn this episode:00:00:00 Welcome00:01:26 Understanding the 3.9% Safe Withdrawal Rate00:02:33 How Flexible Strategies Lift Withdrawal Rates Up to 5.7%00:03:48 Flexible Approaches for Retirees Seeking Predictable Paycheck-like Income00:05:40 Inside the Vanguard Dynamic Spending Method00:07:15 Highest

Quantum computing stocks have surged in popularity over the past year, capturing investors’ enthusiasm on the coattails of the artificial intelligence boom. These buzzy names took off last summer after a slew of announcements and research breakthroughs from the biggest players in the tech industry like Alphabet GOOGL/GOOG, Amazon AMZN and Microsoft MSFT. Quantum computing promises to be one of the most transformative technological developments of the next few decades, but Morningstar’s analysts caution that mainstream market adoption could be a long away. Dan Romanoff, a senior equity research analyst on the technology team at Morningstar, discusses new developments in the quantum computing landscape and the best way for investors to get exposure in their portfolios now.Quantum Computing Market InsightsOn this episode:00:00:00 Welcome00:01:28 What Is Quantum Computing?00:04:37 Why Are Computing Stocks Attracting Investors?00:12:45 Quantum Technology Isn’t Yet Ready for the Mainstream00:18:19Quantum Could Repr

Higher interest rates have ushered in an era where income opportunities abound. That’s following years of parched cash flow streams and low rates, especially in fixed income. However, risks like stubborn inflation and elevated stock valuations exist. Morningstar researchers believe it’s important to identify income opportunities that could be resilient in today’s market. Dominic Pappalardo, chief multi-asset strategist for Morningstar Wealth, joined Investing Insights to discuss where to look.Editor's note: The host misspoke when referring to Morningstar Holland’s chief European market strategist. His name is Michael Field.Income Investing Strategies for 2026: Maximizing Yield in an Uncertain MarketOn this episode:00:00:00 Welcome00:01:33 Income investing in 202600:04:02 Bond market breakdown: short, intermediate, or long term?00:07:39 Global bonds and hedging strategies00:13:27 Equity Opportunities Beyond the US00:15:31 REITs vs Utilities00:17:14 Building Resilient Income Streams  Watch more from Morningstar

Is your portfolio making a big bet on the Magnificent Seven? Mega-cap names like Nvidia, Alphabet, and Apple belong to the exclusive club that has largely driven US returns higher in recent years. Their success has led to market concentration. Portfolios tracking broad benchmarks have seen their diversification decrease and risk increase. How can you prepare your portfolio to absorb potential shocks? And where are the opportunities beyond the Mag Seven? Morningstar Holland’s Chief European Market Strategist Michael Field is one of the researchers who investigated this.Beyond the Magnificent Seven: Unlocking Value in a Concentrated Stock MarketOn this episode:00:00:00 Welcome00:01:49 The Magnificent Seven’s strong returns have benefited many investors. Why is their dominance a risk?00:02:07 Your team highlighted a noteworthy stat in the report. The top 10 US stocks make up about 35% of the overall market. That’s almost double from a decade ago. What does that signal to you?00:02:39 Can you explain what the hid

This week, we’re looking back at three discussions we held earlier this year on Investing Insights about exchange-traded funds that income investors might find attractive. Morningstar ETF specialists, Bryan Armour and Dan Sotiroff, talked about dividend, bond, and covered-call ETFs in 2025.Subscribe to Morningstar’s ETFInvestor Newsletter.On this episode:00:00:00 Welcome00:01:33 Dividend investing can result in exposure to factors like value, quality, and low volatility. Can you briefly explain one, what is factor investing, and then where do dividend ETFs typically land?00:03:21 How do you find a dividend ETF that provides the optimal, or just rightamount, of factor exposure? And what should appear on our checklist? 00:04:40 Four dividend ETFs hold Morningstar’s Medalist Rating of Gold. Let’s start with the two dividend growth ETFs from Vanguard that hold these marks.00:05:17 Explain why Vanguard’s top dividend income strategy also impressed Morningstar analysts.00:06:07 The final and fourth Gold-rated divid

Market volatility has left its imprint in 2025. Turbulence from tariffs, tech, and more have shaken investors’ confidence at times. Many folks looked for safety during those down periods. Yet, the US stock market overall has delivered a strong performance. So, who are the leaders and laggards as this year comes closer to wrapping up? And what should you watch with 2026 fast-approaching? Morningstar Indexes strategist and columnist Dan Lefkovitz has examined this year’s investment performance.5 Investing Surprises From 2025On this episode:00:00:00 Welcome00:02:45 Market volatility ebbed and flowed in 2025. How volatile was the US stock market this year compared to recent years? 00:03:51 What has driven the volatility this year? 00:05:16 During these down periods, where did investors hide or seek safety? 00:06:04 Let’s zoom in on the investment leaders and laggards this year. What areas are outperforming, and which ones are underperforming? 00:06:43 You research the performance of investment factors which can d

A shift in mindset can help investors cope with market uncertainty.2025 was a case study in the futility of trying to predict the market. Wall Street had lofty expectations for stocks entering the year. Then the tariff shock in April rattled the markets and many firms lowered their annual stock forecasts in response. They later raised them—after stock prices rebounded. With the new year on the horizon, Morningstar’s 2026 Global Outlook report is offering investors tactics to weather whatever the future may hold.Morningstar strategists and an analyst will discuss key challenges facing investors in 2026 in our series. Dan Kemp, the chief research and investment officer with Morningstar Investment Management Europe, is one of the major driving forces behind the report.We’re going to dig into research analyzing the AI arms race and its worldwide buildout. A team of Morningstar researchers have investigated the spending and the risks. Morningstar Research Services’ senior equity analyst Brian Colello was part of t