Vanguard to broaden international index offering with two dividend-oriented funds and ETFs

Vanguard has filed a registration statement with the Securities and Exchange Commission for its first dividend-oriented international index funds. Vanguard International High Dividend Yield Index Fund and Vanguard International Dividend Appreciation Index Fund will complement Vanguard’s existing domestic dividend-oriented funds…

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The $15 billion Vanguard High Dividend Yield Index Fund and the $23 billion Vanguard Dividend Appreciation Index Fund.

“The two new funds will broaden Vanguard’s international index fund and ETF lineup to nearly 20 offerings and provide investors with broadly diversified exposure to dividend-oriented international investment strategies in a low-cost way,” said Vanguard CEO Bill McNabb.

The funds, which are expected to be available in December, will offer three low-cost share classes (as shown in the accompanying tables):

Vanguard International High Dividend Yield Index Fund

Vanguard International Dividend Appreciation Index Fund

Vanguard International High Dividend Yield Index Fund will follow an income investing strategy, focusing on companies with high dividend yields, while Vanguard International Dividend Appreciation Index Fund will emphasize stocks exhibiting dividend growth.

Vanguard International High Dividend Yield Index Fund will seek to track the performance of the FTSE All-World ex US High Dividend Yield Index, a new benchmark of more than 800 of the highest yielding large- and mid-cap developed and emerging markets securities. An international dividend portfolio has historically experienced a higher dividend yield than one with a U.S.-only exposure, as U.S. equities tend to have slightly lower yields.1 Vanguard expects the fund to appeal to financial advisors and investors seeking higher yields than the broader market.

Vanguard International Dividend Appreciation Index Fund will seek to track the performance of the Nasdaq International Dividend Achievers Select Index. This new benchmark comprises more than 200 all-cap developed and emerging markets stocks with a long track record of increasing annual dividend payments. The resulting multi-country portfolio offers a more diversified exposure to stocks with stable earnings growth, and low debt, than one with US-only securities.2 Vanguard expects the fund to appeal to all investors who seek a portfolio of global diversified securities which have had a long track record of increasing annual dividend payments.

Source: ETFWorld.com

WMCR
Wilshire Micro-Cap ETF (based on the Wilshire US Micro-Cap Index)