Financial experts describe Vice President Kamala Harris’ investment style in one word: Boring. Her financial disclosure for 2023, which reveals she favors passively managed index funds, indicates that she is relatively free of financial conflicts. Experts commend Harris for investing in low-cost passive strategies, saying that she has one of the cleanest portfolios among politicians. While her disclosure sheds light on her financial circumstances, experts suggest that she could reduce the number of funds she owns to streamline her investments. The disclosure includes cash holdings of potentially $850,000 and an adjustable-rate mortgage at a 2.625% rate for a personal residence.
Harris owns eight different funds as part of two 457(b) deferred compensation plans from her time in California, while her husband, Second Gentleman Douglas Emhoff, has more than 30 mostly passively managed fund investments. Experts suggest that they could cut down on overlapping exposures by consolidating their holdings. The portfolio includes allocations to foreign equities and fixed-income funds, and while there are many buy and sell transactions in lower dollar amounts, this may be due to quarterly rebalancing activities. The disclosure reveals that Harris and Emhoff have a large cash pool, which can provide a safety net and earn investment returns in the current high-rate environment.
Harris lists a 7-year adjustable-rate mortgage at a 2.625% rate for a personal residence valued between $1 million to $5 million. Experts point out that adjustable-rate mortgages typically offer an initial fixed interest rate that expires after a certain period, leading to potential rate increases. They suggest that Harris and Emhoff missed the opportunity to lock in a low rate for a longer term with the recent rise in mortgage rates. However, they can always refinance or pay off the mortgage if rates become unfavorable in the future. In addition to their investments, Harris also earns royalty income from books she authored, demonstrating how a side hustle can contribute to household finances.
Harris reveals more about her personal life through her financial disclosures, including receiving Beyoncé concert tickets valued at over $1,600 in 2023. While she is using Beyoncé’s “Freedom” as her campaign song, the disclosure indicates that she has been a fan of the singer for some time. Overall, experts view Harris’ investment style as conservative and commendable, with a focus on low-cost passive strategies. Despite owning a diverse range of funds, experts suggest that Harris could simplify her holdings. Her disclosure also highlights her financial preparedness, with a substantial cash holding that can serve as a safety net. Harris’ financial decisions and transparency provide lessons for other investors seeking to balance their financial portfolios and plan for the future.
