Ready to invest abroad with confidence? Be one of the first to buy our newest actively managed international stock fund: Vanguard International Dividend Growth Fund.
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Discover our new international fund
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November 01, 2023
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Meet our new fund
The International Dividend Growth Fund invests in high-quality international companies handpicked by the experts at Wellington Management Company LLP—our longtime investment advisory partner. The fund invests in companies that aim to produce consistent cash flow and that the advisor believes have the ability and willingness to grow dividends over the long term. It seeks to outperform the broad international equity market with a focus on performing better in down markets while safeguarding from risk.
Vanguard International Dividend Growth Fund
Ticker symbol: VIDGX
Expense ratio: 0.54%
Investment minimum: $3,000
Management style: Active
Asset class: International/Global stock
Investment advisor: Wellington Management Company LLP
The history of Wellington
Founded in 1928, Wellington has partnered with Vanguard to manage our funds with expertise and care since we began operations in 1975. With the mindset of a long-term business owner, Wellington shares our philosophy of slow and steady compounding and staying the course in good times and bad.
Portfolio manager Peter Fisher and his team at Wellington—the same group that advises Vanguard Dividend Growth Fund—will manage the International Dividend Growth Fund. They'll apply the same time-tested investment philosophy they apply to Dividend Growth in choosing international stocks for the new fund, assessing companies based on:
- Their potential to compound value over time.
- Their expected ability and willingness to distribute capital back to shareholders in the form of a growing dividend.
- Their adaptability to stress over time.
- The price opportunity, which reflects their assessment of the attractiveness of the current price of the security.
Dive into dividend-focused investing
Bond funds aren't the only way to get income. Dividend funds can also provide a steady stream of income and may play a role in your portfolio, depending on your goals. These types of funds can prosper when the stock markets are up and show resilience when the stock markets are down, offering the potential for higher risk-adjusted returns. Depending on the current mix in your portfolio, they could also be a good choice if you're looking for a way to reduce volatility.
There are 2 main types of dividend funds:
- Dividend growth funds invest in companies that the advisor believes have the willingness and ability to grow their dividends over time. Their objectives are to earn capital appreciation and produce a consistent income stream across market cycles.
- High-dividend-yield funds invest in companies with a history of paying high dividend yields with the objective of providing a high level of income (though income can be susceptible to market downturns).
Our dividend growth funds:
| Fund name | Ticker symbol |
Management style | Geographic coverage |
Vanguard Dividend Appreciation ETF |
Index |
U.S. |
|
Vanguard Dividend Appreciation Index Fund |
Index |
U.S. |
|
Vanguard Dividend Growth Fund |
Active |
U.S. |
|
Vanguard International Dividend Appreciation ETF |
Index |
International |
|
Vanguard International Dividend Appreciation |
Index |
International |
|
NEW! |
Active |
International |
Fund Name
Vanguard Dividend Appreciation ETF
Ticker symbol
VIG
Management style
Index
Geographic coverage
U.S.
Fund Name
Vanguard Dividend Appreciation Index Fund
Ticker symbol
VDADX
Management style
Index
Geographic coverage
U.S.
Fund Name
Vanguard Dividend Growth Fund
Ticker symbol
VDIGX
Management style
Active
Geographic coverage
U.S.
Fund Name
Vanguard International Dividend Appreciation ETF
Ticker symbol
VIGI
Management style
Index
Geographic coverage
International
Fund Name
Vanguard International Dividend Appreciation Index Fund
Ticker symbol
VIAAX
Management style
Index
Geographic coverage
International
Fund Name
NEW! Vanguard International Dividend Growth Fund
Ticker symbol
VIDGX
Management style
Active
Geographic coverage
International
Our high-dividend-yield funds:
| Fund name | Ticker symbol |
Management style | Geographic coverage |
Vanguard Equity Income Fund |
Active |
U.S. |
|
Vanguard High Dividend Yield ETF |
Index |
U.S. |
|
Vanguard High Dividend Yield Index Fund |
Index |
U.S. |
|
Vanguard International High Dividend Yield ETF |
Index |
International |
|
Vanguard International High Dividend Yield Index Fund |
Index |
International |
Fund Name
Vanguard Equity Income Fund
Ticker symbol
VEIRX
Management style
Active
Geographic coverage
U.S.
Fund Name
Vanguard High Dividend Yield ETF
Ticker symbol
VYM
Management style
Index
Geographic coverage
U.S.
Fund Name
Vanguard High Dividend Yield Index Fund
Ticker symbol
VHYAX
Management style
Index
Geographic coverage
U.S.
Fund Name
Vanguard International High Dividend Yield ETF
Ticker symbol
VYMI
Management style
Index
Geographic coverage
International
Fund Name
Vanguard International High Dividend Yield Index Fund
Ticker symbol
VIHAX
Management style
Index
Geographic coverage
International
Consider international investments
International markets don't always rise and fall with domestic markets, so investing in both can help level the volatility in your portfolio. In general, we recommend that at least 20% of your overall investments should be allocated to international stocks and bonds. To get the full benefits of diversification, you might even consider investing 40% of your overall stock allocation to international stocks and 30% of your overall bond allocation to international bonds.
Over the next decade, Vanguard sees a potential for higher expected returns for international investments vs. domestic. For U.S.-based investors, our 10-year annualized return forecasts are in the 4.1%–6.1% range for U.S. stocks and 6.5%–8.5% for international stocks.*
Vanguard International Dividend Growth Fund has the potential to act as armor for the international markets, giving you exposure while potentially protecting against downside risk and providing a growing stream of dividend income. It can serve as a foundational investment in your portfolio or as a satellite holding to add strategic value. Pair it with our domestic Dividend Growth Fund (VDIGX) for a globally diversified, actively managed stock allocation.
Ready to diversify your portfolio?
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Discover our new international fund
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Investing strategies
Ready to invest? See how to open an account
Start with this step-by-step guide to opening a personal investment account, such as a general investing brokerage account or an IRA.
Retirement
Backdoor Roth IRA What it is and how to set it up
If you are a high-income earner, a Backdoor Roth IRA may be a good
retirement investment option for you. Learn what it is and how to set up this type of
retirement plan.
Company news
Who owns Vanguard?
Who owns Vanguard? Learn why we're proud to be the only investor-owned investment management company and how we focus on putting investor needs first.
Understanding investment types
Are bonds a good investment right now?
Learn how high-quality bonds can play a valuable role in your portfolio in a high-yield environment.
Personal finance
Top 6 tips: Your year-end financial checklist
Company news
Discover our new international fund
All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.
Investments in stocks or bonds 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 issued 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. Bond funds are subject to the risk that an issuer will fail to make payments on time and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments. Investments in bonds are subject to interest rate, credit, and inflation risk.
You must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services (we offer them commission-free) or through another broker (which may charge commissions). See the Vanguard Brokerage Services commission and fee schedules for full details. Vanguard ETF Shares are not redeemable directly with the issuing fund other than in very large aggregations worth millions of dollars. ETFs are subject to market volatility. When buying or selling an ETF, you will pay or receive the current market price, which may be more or less than net asset value.
The SEC has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is considered a criminal offense. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
For more information about Vanguard mutual funds or Vanguard ETFs, obtain a mutual fund or an ETF prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing. Copies of the final prospectus for Vanguard International Dividend Growth Fund can be obtained from Vanguard. Please note that a preliminary prospectus is subject to change.