Discover our new international fund

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.

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).

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.