Vanguard International Value Fund
The investment aim of this fund is to achieve long-term capital appreciation. This Vanguard International Value fund utilizes its assets to purchase a portfolio of undervalued common stocks of companies located outside the United States. These undervalued stocks, called value stocks, often are out of favor in periods when investors are drawn to companies with strong prospects for growth.This Vanguard fund invests in large-, mid-, and small-capitalization companies. It is expected to diversify its assets across developed and emerging markets in Europe, the Far East, and Latin America. The fund uses multiple investment advisors.
Fund Profile
- Fund Inception Date: May 15, 1983
- Ticker Symbol: VTRIX
- CUSIP: 921939203
- Beta (3yr): 1.03
- Rank in category (YTD): 62%
- Category: Foreign Large Value
- Distribution: 2.49%
- Capital Gains: 0%
- Expense Ratio: 0.40%
- Net Assets: $ 7.2 billion
- Number of Years Up: 20 years
- Number of Years Down: 9 years
- Annual Turnover Rate: 53%
As part of Vanguard family, this best foreign large value fund has total net assets of $7.2 billion. The yield is 2.49%. The fund is managed by A. Rama Krishna & Steven Morrow from AGRA Investment Management, Sandy Naim from Edinburgh Partners Ltd, and Michael G. Fry & Michael A. Bennett from Lazard Asset Management. The fund’s expense ratio is quite low, only 0.40%.
Foreign Large Value Fund
The fund’s benchmark is MSCI AC World Index ex USA Net. Since the inception in 1983, the fund has recorded 20 years of positive return and 9 years of negative return. The best 1-year total return was in 2003 with 41.90%. It has 3-stars and Bronze rating from Morningstar. As of June 21, 2013, the fund has YTD return of 1.09%. Based on the load adjusted returns, the fund’s performance is as below:- 1-year: 9.37%
- 3-year: 3.50%
- 5-year: -0.89%
- 10-year: 10.80%
The initial investment needed for brokerage account is $3,000 with minimum subsequent investment of $100. The same amount also applies for retirement (IRA) account. This is a no-load fund, it has no management fee and no front-end sales load fee. The fund can be purchased from 95 brokerages. They are T Rowe Price, JP Morgan, Scottrade Load, Datalynx, Schwab Retail, E Trade Financial, Federated Trust Connect, Royal Alliance, etc.The top 10 stocks in its holdings as of May 2013 are Unilever plc, SAP AG, China Mobile Ltd, Royal Bank of Scotland Group plc, Sumitomo Mitsui Financial Group Inc, Seven & I Holdings Co Ltd, HSBC Holdings plc, Anheuser-Busch InBev NV, Japan Tobacco Inc and Novartis AG. These ten holdings equal 15.9% of the total net assets. The top sectors are Financials (22.1%) and Industrials (16.9%). United Kingdom (17.4%) and Japan (17.2%) are the top 2 countries in this fund.
According to the fund’s website, the primary risks investing in this fund include stock market risk, country/ regional risk, currency risk, investment style risk and manager risk.
Disclosure: No Position
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