Vanguard Personal Advisor Services to Add 3 New Active Equity Funds

"Active management is particularly well-suited for advised portfolios because advisors can ensure expectations are managed appropriately, allocations are consistent with risk tolerance, and clients are supported and coached through periods of underperformance," said Jon Cleborne, head of Vanguard Personal Advisor Services, in a statement.

"The funds, managed by top-tier portfolio managers, will enable more personalized portfolio construction and provide the potential to drive improved client outcomes over the long term," said Matt Benchener, managing director of Vanguard Retail Investor Group, in a statement.

Here's a lowdown on the three funds:

• Vanguard Advice Select Dividend Growth Fund will focus on financially sound, large-cap companies across a diverse range of sectors that have prospects for long-term total returns due to their ability to grow earnings and willingness to increase dividends over time. The fund is a more concentrated version of the strategy used in the Vanguard Dividend Growth Fund and will be managed by Wellington Management Co. LLP with an estimated expense ratio of 0.45%.
• Vanguard Advice Select Global Value Fund will invest in discounted companies that are avoided or overlooked by the market. It is an all-cap global fund also managed by Wellington Management, with an estimated expense ratio of 0.40%.
• Vanguard Advice Select International Growth Fund will use a bottom-up equity strategy, analyzing the fundamentals of individual companies rather than broad sectors or industries, to focus on exceptional international growth companies. The fund will be managed by Baillie Gifford Overseas Ltd., as a more concentrated version of the strategy used in the  Vanguard International Growth Fund. Its estimated expense ratio is 0.42%.

All three funds have expense ratios that are one-third to one-half the average expense ratio of  similar actively managed equity funds, according to Vanguard.

As of June 30, Vanguard Personal Advisor Services had $243 billion in assets. Its parent company had $8 trillion in global assets as of July 31.