2026 mid-year Risk Speedometers: What are allocators buying and selling?

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2026 mid-year Risk Speedometers: What are allocators buying and selling?

Vanguard Perspective

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July 31, 2026

Allocators continued to favor fixed income despite strong equity returns.

Vanguard's latest Risk Speedometers offers new insights by analyzing cash flows into and out of asset categories for the 6- and 12-month periods ended June 30, 2026. 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.

  • Allocators continued to balance cash flows and risk appetite—a positive trend, especially given the noteworthy relative outperformance of equities over fixed income for the past six months and year.
  • This behavior aligns with Advisor's Alpha® research and suggests a divergence from historical trends, as allocators have stayed disciplined rebalancing into fixed income.
  • We maintain that, even with the strong rebalancing efforts by advisors over the past decade, additional rebalancing from equities into fixed income may be needed.

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.

 

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Mid-year 2026 Risk Speedometers: What are allocators buying and selling?

During the first half of 2026, cash flows remained balanced, suggesting fund allocators stayed disciplined and continued to rebalance portfolios rather than chase performance as they had previously.

However, equity returns continued to outpace those of fixed income, meaning additional rebalancing into bonds may still be necessary.

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Notes

  • All investing is subject to risk, including the possible loss of the money you invest.
  • Past performance is no guarantee of future results.
  • Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.

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