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Bonds continue to deliver this year, thanks to higher coupons, price appreciation, and spread compression.

European equities are emerging from the shadows of U.S. markets, offering attractive valuations and strong diversification benefits.

Imagine investing in an active equity fund that promises a focus on growth—only to discover that the fund has moved away from its stated style, and many of its holdings are instead value stocks. This phenomenon, known as style drift, can catch investors off guard and can sometimes lead to disappointment, as it causes the actual style exposure of portfolios to differ from expectations.

After months of frozen progress in U.S.-Canada trade negotiations, recent developments suggest a tentative thaw.

Rising tariffs and persistent trade tensions have reignited inflation fears. Yet, despite the headlines, data suggest the impact will be gradual. Consumer prices are likely to absorb the pressure more slowly than initially expected, with inflation peaking in 2026 and largely subsiding within months, not years.

In a recent Morningstar article, Sara Devereux, Vanguard’s global head of fixed income, says bond investors are enjoying a rare sweet spot in today’s market. With yields well above pre-pandemic lows and the Federal Reserve expected to begin cutting interest rates soon, the environment remains attractive for long-term investors looking to stabilize portfolios and generate steady returns.

Our monthly outlook discusses what happened to the small-cap premium and a measured softening in the U.S. economy.

Investors and advisors often look for the holy grail of investing. Performance, diversification, high quality, low cost and accessibility within their preferred wrapper. While it’s true that you often can’t have it all, you can have all those components with a trusted asset manager that offers portfolio construction expertise and a record of consistent long-term investment returns.

Bonds have continued to flex the power of income. They not only provided stability during the tariff-related volatility, but returns have been solid.

More and more investors and financial advisors are building portfolios that align with individual goals by combining multiple index ETFs. While this approach offers many benefits, it may harbor a hidden risk: The varying rules for constructing indexes among different providers can lead to significant deviations from benchmark exposures. This can inadvertently increase portfolio volatility and affect returns, making it crucial to understand these differences before blending ETFs from different index families.

The financial advice industry has traditionally focused on the money management benefits it offers to investors, such as portfolio construction and monitoring. However, this emphasis can overshadow the broader and often intangible benefits that investors derive from professional guidance. Beyond the numbers, paid financial advice offers emotional benefits and significant time savings, allowing investors to manage the complexities of their financial lives by turning to trusted experts.

The Canadian economy faces trade tensions and a weakening labor market, but Q1 2025 GDP grew 2.2% due to U.S. tariff frontrunning.