Vanguard International Dividend Growth Fund: VIDGX (not VDIGX)
is a new actively managed MT from Vanguard.
Any comments about this fund from the board members?
You might get more responses at the Bogleheads forum!
Those who respond to investing questions here tend to follow the evidence based Bogleheads philosophy that long term returns are maximized with low-cost diversified index funds. Headwinds for VIDGX includes a relatively high expense ratio of 0.54%. VIDGX has just completed the subscription phase so you might wait if you decide to post elsewhere.
More of a fan of ETF’s which Vanguard has few for as large as it is. Investigate the advantages of ETF’s over funds. I have and am in Vanguard’s International funds but not a fan. Here is a quote from an interview with Tom Graff of Facet.
Graff: We think too many investors are overly focused on income. High dividend stocks are systematically lower in profit margin, slower growing and higher leverage companies. That’s led to long-term underperformance for these companies. Moreover, they don’t really save you anything on the downside. In the last 30 years, the S&P High Dividend index has captured 94% of downside periods but only 69% of upside periods. That is a poor trade-off in my opinion.
After I read this I thought about it and with my years of investing I think he is on the mark. He did not differentiate between international or domestic. I did not see where these percentages were quoted from. I looked over the total history of these type of funds and was not impressed with the earnings vs. the risk in International community.I personally received an invitation to invest. I would take a wait and see observing attitude if you were really motivated to invest in this fund. I am trying, myself, not to investing in any funds but leaning more for ETF’s especially in taxable accounts.