Vanguard likes a 40/60 portfolio for 2026. Where the firm sees solid returns
CNBC••business
Key Points:
- Vanguard plans to shift its 2026 portfolio allocation from the traditional 60% stocks/40% bonds to a 40% stocks/60% bonds mix, expecting this to yield higher risk-adjusted returns over the next decade based on their 10-year forecasts.
- The firm anticipates subdued U.S. equity returns of about 4.5%-5% annually, significantly lower than the 15% average over the past decade, while expecting elevated bond yields around 4%-4.5% on 10-year Treasurys, offering more portfolio stability.
- Vanguard's equity allocation favors U.S. value stocks with limited exposure to growth and AI-related stocks, citing high valuations and a cautious outlook on AI's direct stock
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