Index funds investing focusing on dividend growth companies

Index funds investing focusing on dividend growth companies outperformed with a 1.4% weekly gain. Defensive sectors including utilities and healthcare continued to stabilize portfolio returns. The Fed’s expected interest rate cuts could boost bond prices, all while hype around AI has made the stock market historically expensive. Vanguard is beefing up its fixed income lineup at the same time its research team is nudging investors in the direction of bonds. Its “time-varying” asset allocation model, meant to build a model portfolio for investors with a risk tolerance suitable for a standard 60/40 allocation under normal circumstances, recommended a 70% allocation to bonds and just 30% in stocks in its latest quarterly update . The largest detractors to the fund’s return in the third quarter were telecom company Charter Communications CHTR , which detracted 0.9 percentage points, and fintech firm Fiserv FI , which trimmed 0.8 points. According to Morningstar associate director Tony Thomas, such short-term bumps are familiar to the fund, which holds a Gold Medalist Ranking, but he also wrote that the fund’s long-term record is “impressive.” Index funds investing saw allocations shift toward ESG-focused portfolios following regulatory approvals for new sustainability benchmarks. MSCI ESG Leaders Index rose 1.1% this week.