WEEKLY BRIEF | Vanguard Morningstar?

Hello, and welcome to the IVA Weekly Brief for Wednesday, April 29.

There are no changes recommended for any of our Portfolios.

Traders have spoken: AI matters more than geopolitics.

With two trading days left in April, Information Technology ETF (VGT) has surged 17.7% this month. If it sticks, that would be its best monthly return since its 2004 inception. The runner-up? April 2020, when the tech ETF gained 14.2% as markets rebounded from the initial COVID panic.

To find stronger monthly gains, you have to rewind to the late-1990s tech bubble—before Vanguard’s ETFs were around. The wrinkle: while some of tech’s biggest months came during the bubble’s final surge—December 1999 and February 2000—most occurred after it burst, in 2001 and 2002.

So, where does April 2026 fit?

The AI rally hasn’t cracked, so it’s clearly not 2001 or 2002. But the month's returns put us in rarefied company. Whether this looks more like a peak (late 1999) or simply a big month in the middle of a rally (like July 1997) is something we’ll only know in hindsight.

Does that mean it’s time to bail out of tech?

No.

Big, all-in or all-out calls are rarely the right move. But periods like this are a good reminder to check your exposure. If the past month has quietly turned your portfolio into a tech fund, that's worth a second look.

A Rose By a Different Name

Wow.

Vanguard just announced it is renaming its lineup of U.S. stock index funds to include the firm behind the indexes—Morningstar. So Total Stock Market Index (VTSAX) will become Vanguard Morningstar Total Stock Market Index Fund. The changes are expected in July 2026 and will touch $3.2 trillion in assets across 13 funds.

To be clear, nothing changes for investors. Fees, benchmarks and managers stay the same. It's just a new name.

But it's a notable one. Vanguard's core U.S. stock index lineup now splits into three index-provider-branded series—Morningstar, Standard & Poor’s (S&P), and Russell. The two biggest funds unaffected—500 Index (VFIAX) and Extended Market Index (VEXAX)—track S&P benchmarks and keep the Vanguard-only name.

Frankly, this feels more like a win for Morningstar than for Vanguard. Morningstar acquired CRSP—the academic research outfit behind these index funds—last fall. Now, six months later, its name is on some of the world's largest index funds. Vanguard's name on an index fund is about as strong an endorsement as exists in investing. Adding Morningstar's isn't a step up.

Maybe Vanguard figures the co-branding neutralizes any appearance of playing favorites among index providers. It's a reasonable explanation—just not a particularly satisfying one.

The index business is changing. Morningstar paid good money ($375 million) for CRSP—and now it's collecting on that investment, one fund name at a time.

Ask Alexa?

On Monday, Vanguard teamed up with Amazon to promote its proxy-voting Investor Choice program. Say "Alexa, take me to Vanguard Investor Choice," and the device will walk you through the program—and even send a link to your phone to enroll.

Okay… sure.

It feels gimmicky. Maybe I’m just out of touch—I’m not talking to a smart speaker about my proxy votes.

The collaboration was reportedly supported by Amazon's Brand Innovation Lab—the creative arm of Amazon Ads. So, this wasn't just a tech partnership; it was marketing. I'm skeptical that many investors will discover proxy voting through a smart speaker, and I'd rather see Vanguard fix its technology and service issues before pursuing stunts like this.

That said, there was more meaningful news buried in the announcement: Vanguard plans to expand Investor Choice to all its U.S. stock index funds by the end of 2027—growing the program from $3.6 trillion to $6.4 trillion in eligible assets. Notable holdouts like Total Stock Market Index and SmallCap Index (VSMAX) still aren't included, but they will be.

That expansion is worth paying attention to. The Alexa tie-in, not so much.

Our Portfolios

Our Portfolios are showing solid returns for the year through Tuesday. The Aggressive Portfolio is up 5.2%, the Aggressive ETF Portfolio is up 5.5%, the Growth Portfolio is up 4.2%, the Moderate Portfolio is up 5.6% and the Conservative Portfolio is up 3.3%.

This compares to a 4.9% return for Total Stock Market Index (VTSAX), an 8.6% gain for Total International Stock Index (VTIAX), and a 0.5% return for Total Bond Market Index (VBTLX). Vanguard’s most aggressive multi-index fund, Target Retirement 2070 (VSNVX), is up 5.8% for the year, and its most conservative, LifeStrategy Income (VASIX), is up 1.5%.

IVA Research

Yesterday, Premium Members received my take on a question I hear all the time: Stocks are expensive. Should I move to safer investments—sell stocks and buy bonds?

Until my next IVA Weekly Brief, have a safe, sound and prosperous investment future.