Vanguard has launched an active global dividend growth fund with a $3,000 minimum initial investment and a two-week subscription period that ends Nov. 14.
With the Vanguard International Dividend Growth Fund (VIDGX), portfolio manager Peter Fisher and the Wellington Management team behind Vanguard Dividend Growth Fund will apply their investment philosophy and process to international stocks, the mutual fund giant said.
The new fund focuses on companies with strong balance sheets and high, sustainable free cash flows that allow them to grow dividends over time while reinvesting in future growth, Vanguard said in a statement. It seeks to provide, primarily, a growing income stream and, secondarily, long-term capital appreciation and current income, the company said in a Securities and Exchange Commission filing.
The fund will have a single share class with an estimated expense ratio of 0.54%, compared with the industry average of 1.02%, Vanguard said.
