Real Yields and Private Capital

Vanguard’s July 2025 Portfolio Perspectives delivers practical guidance for advisors navigating a regime shift marked by elevated real yields and growing interest in private investments.

• Higher real rates are here to stay: U.S. Treasury real yields now exceed multi-decade medians, enhancing fixed income’s role in income generation and inflation protection.

• Private markets demand selectivity: While private investments can boost long-term outcomes, they require advisor capacity, client readiness, and access to top-tier managers.

• Model portfolios offer leverage: Systematized frameworks can help integrate private assets without overwhelming operational complexity.

How are you adapting your portfolio construction to reflect today's structural rate and market changes? The full piece outlines actionable tools and fund ideas for advisors.