Midyear 2024 Risk speedometers: What are allocators buying and selling?

The Vanguard Investment Advisory Research Center’s latest Risk speedometers offer new insights by analyzing cash flows into and out of asset categories for the 6- and 12-month periods ended June 30, 2024. 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.

A key takeaway: Risk appetite in both the 6-month and 12-month time frames rose from prior readings, with both now above their long-term means; meanwhile, money markets and fixed income continued to dominate inflows from a percentage-of-base-assets perspective.

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 comprehensive analysis.

Notes

• All investing is subject to risk, including the possible loss of the money you invest.