Vanguard to Launch Active Dividend Growth Fund

What You Need to Know

The Vanguard International Dividend Growth Fund will have an expense ratio of 0.54% when it launches in Q4.
The active fund will have just one share class, with a minimum initial investment of $3,000.
The fund will be advised by Wellington Management and managed by Peter Fisher, who also co-manages the Vanguard Dividend Growth Fund.

Vanguard is adding an actively managed equity fund to its lineup that seeks to compound wealth over the long term by investing in international companies with sustainably growing dividends, the firm said Friday.

The company expects the Vanguard International Dividend Growth Fund will become available for investors in the fourth quarter, with an expense ratio of 0.54%, it said.

The fund will have just one share class, with a minimum initial investment of $3,000, Vanguard said in a news release

The new fund will be managed by the same investment team, from Wellington Management Company, that managed the Vanguard Dividend Growth Fund.

Vanguard reopened its $36.6 billion Vanguard Dividend Growth Fund (VDIGX) in 2019 to all investors. It had closed the fund to most new accounts in July 2016, seeking to protect the interests of existing shareholders by reducing cash flow after a period of rapid growth.

Wellington is Vanguard’s largest and longest-serving external advisor. From the day Vanguard was founded, Wellington has been managing client assets on behalf of the Vanguard funds. As of June 30, Wellington oversaw more than $405 billion of Vanguard fund assets globally, according to Vanguard.