Investing Insights

Dan Sotiroff, a Senior Manager Research Analyst at Morningstar, sheds light on the intricacies of stock ETFs. He explains how not all new ETFs are worth the investment and the crucial role of risk-adjusted returns. Dan reveals that ETFs with fewer than 100 holdings are risky and distinguishes between active and passive management styles. He also discusses the challenges of thematic ETFs and the common pitfalls investors face regarding timing and fees. Tune in for essential guidance to make informed ETF choices!

Dave Sekera, Chief US Market Strategist at Morningstar Research Services, dives into the complexities of investing in AI. He discusses whether the AI hype marks a genuine boom or a speculative bubble. The conversation shifts to Nvidia's pivotal role amidst US-China tensions and its potential market opportunities. Sekera also highlights specific undervalued stocks, like ASML and Microsoft, as promising investments. This lively exchange is packed with insights on navigating the evolving landscape of AI investments.

David Harrell, Editor of Morningstar's DividendInvestor newsletter, dives into the intriguing world of US dividend stocks and their surprising international revenue streams. He discusses how many well-known companies depend heavily on foreign markets and the risks of currency fluctuations and geopolitical crises. Harrell also compares revenue from 2021 to today, revealing some unexpected shifts. Investors are urged to consider the balance between US and non-US equities while navigating the complexities of global market dynamics.

Is the 60/40 portfolio living up to its reputation of resilience this year? The merit of a classic portfolio of 60% stocks and 40% bonds has been a matter of debate in recent years. A diversified 60/40 strategy failed to protect investors in 2022’s broad market crash—in fact, an all-stock portfolio would have held up better. However, a historical deep dive from Morningstar concluded that the tried-and-true approach lessened the pain in almost all of the worst market crashes in 150 years better than an all-stock portfolio. Morningstar Inc Portfolio Strategist Amy Arnott discusses the 60/40 portfolio’s ups and downs and its performance in 2025.On this episode:What is a 60/40 portfolio, and why is it popular? We often hear claims that the 60/40 portfolio is “dead” or obsolete. Why does it get criticized so much? Some of that criticism flared up in 2022. Why was the performance so bad for the 60/40 portfolio that year? Volatility has rocked the markets in 2025. How has the classic investment strategy done so far this year? Are there any asset classes that have performed better so far in 2025? Why? And which ones have struggled? Interest rates are sitting above 4%, but market watchers are anticipating the Federal Reserve will cut rates in September. What could that mean for the fixed-income part of the 60/40 portfolio? How do you think the 60/40 portfolio will perform over the next few years? Should people still rely on the 60/40 portfolio, or is another strategy better like the 70/30 or 50/30/20, which can be a mix of stocks, bonds, and alternatives? The tried-and-true strategy has proved its worth. So, what’s the final takeaway for current retirees, future retirees, or anyone seeking less risk?Read about topics from this episode.  The 60/40 Portfolio: A 150-Year Markets Stress TestIs the 60/40 Portfolio Feeling ’22?What We’ve Learned From 150 Years of Stock Market CrashesHow Does Your 60/40 Portfolio Allocation Compare With the Pros?Why 2025 Is the Year to Invest in International StocksWhy It’s Not Too Late to Add International ExposureWhy Holding Assets Outside the US Dollar Has Paid Off in 2025How to Use Gold in Your PortfolioPortfolio Diversification Is Winning in 2025 What to watch from Morningstar. These 16 Standout Funds Are Making Big Bets. Do They Fit in Your Investment Portfolio?Market Volatility: Investors Are Seeking Safety in Gold ETFs. Is It Working?Why Bonds Belong in Your Diversified Portfolio (Even Now)Covered-Call ETFs Are Booming. But Not All Yield Is Good Read what our team is writing.Amy ArnottIvanna Hampton Follow us on social media.Facebook: https://www.facebook.com/MorningstarInc/X: https://x.com/MorningstarIncInstagram: https://www.instagram.com/morningstar... LinkedIn: https://www.linkedin.com/company/5161/

Russ Kinnel, a senior principal of ratings for Morningstar Research Services, shares insights on selecting standout mutual funds. He discusses the creation of a thrilling funds list that helps investors navigate a crowded market. Kinnel highlights foreign large growth funds from Fidelity with unique strategies, as well as funds poised to rebound in the healthcare sector. He also addresses risks, the importance of strategic screening, and fixed-income investment options, providing valuable tools for investors refining their portfolios.

Investors are piling into global gold ETFs for a safe haven from uncertainty. Demand surged in the first half of 2025, according to a new report from the World Gold Council. The industry trade group points to geopolitical turmoil, global trade policies, and higher gold prices for driving interest in these ETFs. The lure of investing in gold ETFs can vary from wanting to diversify a portfolio, hedge against inflation risks, or simply bet on rising prices. Bryan Armour explains what you should know about this speculative asset. He’s the director of ETF and passive strategies research for North America at Morningstar Research Services. On this episode:What are gold ETFs, how many types are there, and how do they work? The World Gold Council says there was strong demand for global gold ETFs in the first half of 2025. How much money has flowed in and out of these ETFs, and what’s your take on that?How have gold ETFs held up against market volatility in 2025? How does it compare with other periods of uncertainty? Let’s talk about your recent article about how to choose the right gold ETFs. You pointed out that a two-month launch difference helped create a big gap in assets between the two largest gold ETFs. Can you talk about the rivalry between SPDR Gold Shares GLD and iShares Gold Trust IAU?You listed those two ETFs and several others as top gold ETFs in your article. What makes one of these ETFs different from the other? What should investors zoom in on to find the right ETF for them? How do trading costs affect buy-and-hold investors and day traders differently?The IRS applies a different tax treatment to gold than stocks or bonds. What should investors know? What are the best gold ETFs, and why?Let’s quickly pivot to another speculative asset. People sometimes refer to bitcoin as digital gold. Is that a fair comparison? How has it performed so far this year?Would you say gold ETFs or bitcoin has served as a better hedge?Read about topics from this episode.  Digging for Gold With ETFs 5 Tips for Trading ETFs How to Use Gold in Your Portfolio Commodities vs. Gold: Which Is the Better Inflation Hedge? 3 ETFs to Diversify Your Portfolio Diversification Landscape: Building Diversified PortfoliosMorningstar′s Guide to ETF Investing  What to watch from Morningstar. Why Bonds Belong in Your Diversified Portfolio (Even Now) Covered-Call ETFs Are Booming. But Not All Yield Is GoodThis Dividend Investing Strategy Deserves a Second LookMarket Volatility: Is Your Investment Portfolio Ready for a US-EU Trade Deal? Read what our team is writing.Bryan ArmourIvanna Hampton Follow us on social media.Facebook: https://www.facebook.com/MorningstarInc/X: https://x.com/MorningstarIncInstagram: https://www.instagram.com/morningstar... LinkedIn: https://www.linkedin.com/company/5161/

In this insightful discussion, Paul Olmsted, a senior manager research analyst at Morningstar Research Services, dives deep into the current bond market's dynamics. He highlights how rising yields are making bonds attractive again, especially as diversifiers during stock market sell-offs. Olmsted addresses key concerns, including inflation and interest rates, while explaining strategies for navigating today's market volatility. He also sheds light on speculative fears surrounding the Federal Reserve and the importance of maintaining a balanced portfolio.

Daniel Sotiroff, a Senior Manager Research Analyst for Morningstar Research Services and editor of the ETF investor newsletter, dives into the world of covered-call ETFs. He explains their mechanics and why they're appealing to retirees seeking income. Sotiroff highlights the risks, especially for younger investors, and discusses the tax implications of holding these ETFs. He reviews popular options like the JP Morgan Equity Premium Income ETF and shares insights on their performance in 2025, emphasizing the importance of understanding fee structures.

Join Amy Arnott, a portfolio strategist from Morningstar Inc., as she dives into the nuances of dividend investing. She explains when reinvesting dividends can truly pay off and when it might be wise to cash out instead. Discover the tax implications of different accounts and the critical differences between taxable and non-taxable dividends. Learn about the importance of record-keeping and how your stock holding duration affects your tax outcomes. Amy offers valuable insights for long-term investors looking to optimize their strategies.

Michael Field, a European Market Strategist at Morningstar Holland, dives into the complex world of US-EU trade negotiations and the impact on market volatility. He discusses the implications of President Trump’s tariff delays and the potential consequences for European stocks. Field highlights which sectors may face tariff risks, while shedding light on the EU's push for lower tariffs across various industries. He also identifies promising investment opportunities in undervalued European stocks and shares insights on the market's outlook for 2025.