Vanguard Launches International High Dividend Yield Index Fund and International Dividend Appreciation Index Fund

The firm's first two dividend-oriented international index funds feature low-cost ETF shares

02 Mar, 2016, 08:00 ET from Vanguard

VALLEY FORGE, Pa., March 2, 2016 /PRNewswire/ -- Vanguard today introduced its first dividend-oriented international equity index funds: Vanguard International High Dividend Yield Index Fund and Vanguard International Dividend Appreciation Index Fund.

Vanguard International High Dividend Yield Index Fund follows an income investing strategy, focusing on companies with high dividend yields. The fund will seek to track the FTSE All-World ex US High Dividend Yield Index, a benchmark of more than 800 of the highest yielding large- and mid-cap developed and emerging markets securities. 

Vanguard International Dividend Appreciation Index Fund emphasizes stocks exhibiting dividend growth and seeks to track the Nasdaq International Dividend Achievers Select Index, which comprises more than 200 all-cap developed and emerging markets stocks with a track record of increasing annual dividend payments. 

The funds offer three low-cost share classes, including exchange-traded fund (ETF) shares (as shown in the accompanying tables):

Vanguard International High Dividend Yield Index Fund


Minimum Investment

Estimated Expense Ratio

Investor

$3,000

0.40%

Admiral

$10,000

0.30%

ETF

-

0.30%

Vanguard International Dividend Appreciation Index Fund


Minimum Investment

Estimated Expense Ratio

Investor

$3,000

0.35%

Admiral

$10,000

0.25%

ETF

-

0.25%

Vanguard has a variety of actively managed and indexed dividend-oriented U.S. stock funds, including those that are focused on current income and those focused on dividend growth. In particular, the two new funds will complement Vanguard's existing domestic dividend-oriented index funds: The $16 billion Vanguard High Dividend Yield Index Fund and the $23 billion Vanguard Dividend Appreciation Index Fund.

"Investors continue to adopt the indexing strategy both through traditional index funds and ETFs," said Vanguard CEO Bill McNabb. "Of our record $236 billion in cash flow in 2015, more than 90% was directed to an index product."

Since introducing its first ETF in 2001, Vanguard has emerged as an ETF leader and now manages more than $507 billion in global ETF assets. Investors entrusted more than $82 billion to Vanguard ETFs in 2015 – the most in the firm's history.

The firm manages some of the industry's largest ETFs, including the $54 billion Vanguard Total Stock Market ETF (VTI), $40 billion Vanguard S&P 500 ETF (VOO), and $32 billion Vanguard FTSE Emerging Markets ETF (VWO).

Financial advisors adopt Vanguard ETFs

Financial advisors were early adopters of Vanguard's low-cost, broad-based ETFs. Today, Vanguard is the second largest ETF provider by assets and is among the most trusted. Vanguard was ranked highest in favorability among registered investment advisors (90%) and current ETF users (86%), according to Cogent's 2015 Advisor Brandscape report. The firm's favorability rating among all advisors was 74%.

Vanguard has also been making ETF strategic portfolios available as allocation strategies and portfolio construction tools for financial advisors since 2010. The models have been made available on Vanguard's website and, on a limited basis, to certain third-party technology platforms.

Individual investors increasingly gravitate to ETFs

The new offerings also broaden Vanguard's commission-free ETF line-up.* Individual investors now have a choice of 70 low-cost ETFs to purchase on a commission-free basis. Vanguard has offered commission-free ETF transactions to clients since 2010.

Individual investors are increasingly adding ETFs to their investment portfolios. Ownership of Vanguard ETFs among individual investors has grown nearly 40% per year since 2011. Vanguard High Dividend Yield ETF (VYM) and Vanguard Dividend Appreciation ETF (VIG) are among the most widely held Vanguard ETFs by Vanguard retail clients.

About Vanguard

Vanguard is one of the world's largest investment management companies. As of January 31, 2015, Vanguard managed $3.2 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers more than 315 funds to its more than 20 million investors worldwide. For more information, visit vanguard.com

All cash flow and AUM figures as of December 31, 2015.

All other figures as of January 29, 2015 unless otherwise noted.

* Vanguard ETFs trade commission-free in a Vanguard Brokerage Account. Trading limits, fund expenses, and minimum investments may apply. See the Vanguard Brokerage Services Commission and Fee Schedules on Vanguard.com for full details.

For more information on Vanguard funds, visit vanguard.com, or call 800-662-7447 to obtain a prospectus or, if available, a summary prospectus. Visit our website, call 800-662-7447, or contact your broker to obtain a prospectus for Vanguard ETF Shares. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

Mutual funds and ETFs are subject to risks, including possible loss of principal. Investments issued by non-U.S. companies are subject to risks including country/regional risk, which is the chance that political upheaval, financial troubles, or natural disasters will adversely affect the value of securities issues by companies in foreign countries or regions; and currency risk, which is the chance that the value of a foreign investment, measured in U.S. dollars, will decrease because of unfavorable changes in currency exchange rates. Stocks of companies based in emerging markets are subject to national and regional political and economic risks and to the risk of currency fluctuations. These risks are especially high in emerging markets. Diversification does not ensure a profit or protect against a loss. Past performance is no guarantee of future returns. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.

Vanguard Marketing Corporation, Distributor. U.S. Patent Nos. 6,879,964; 7,337,138; 7,720,749; 7,925,573; 8,090,646; and 8,417,623.

London Stock Exchange Group companies include FTSE International Limited ("FTSE"), Frank Russell Company ("Russell"), MTS Next Limited ("MTS"), and FTSE TMX Global Debt Capital Markets Inc. ("FTSE TMX"). All rights reserved. "FTSE®", "Russell®", "MTS®", "FTSE TMX®" and "FTSE Russell" and other service marks and trademarks related to the FTSE or Russell indexes are trademarks of the London Stock Exchange Group companies and are used by FTSE, MTS, FTSE TMX and Russell under license. All information is provided for information purposes only. No responsibility or liability can be accepted by the London Stock Exchange Group companies nor its licensors for any errors or for any loss from use of this publication. Neither the London Stock Exchange Group companies nor any of its licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE All-World ex US High Dividend Yield Index or the fitness or suitability of the FTSE All-World ex US High Dividend Yield Index for any particular purpose to which it might be put.

"Dividend Achievers" is a trademark of The NASDAQ OMX Group, Inc. (collectively, with its affiliates, "NASDAQ OMX") and has been licensed for use by The Vanguard Group, Inc.  Vanguard mutual funds are not sponsored, endorsed, sold, or promoted by NASDAQ OMX and NASDAQ OMX makes no representation regarding the advisability of investing in the funds. NASDAQ OMX MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO THE VANGUARD MUTUAL FUNDS.

Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc. and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.

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SOURCE Vanguard



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