2025 mid-year Risk Speedometers: What are allocators buying and selling?
Vanguard Perspective
|July 31, 2025
Vanguard Perspective
|July 31, 2025
In the face of strong equity returns, allocators have largely stayed the course of disciplined rebalancing into fixed income.
The Vanguard Investment Advisory Research Center’s latest Risk Speedometers offers new insights by analyzing cash flows into and out of asset categories for the six- and 12-month periods ended June 30, 2025. The speedometers gauge the difference in net cash flow between higher-risk and lower-risk asset classes, providing a way to measure fund allocators’ risk appetite.
Being aware of the categories that are in or out of favor can help you when preparing for client conversations and providing context into what is selling well versus what is being sold in the marketplace. Read the full PDF for our complete analysis.
Investors and their advisors have rebalanced well—marking a pronounced shift from the performance-chasing behavior of the past. Even so, remarkably strong equity returns relative to fixed income means more work of additional rebalancing into fixed income may be necessary.
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