NASDAQ, INC. VALLEY FORGE, Pa., Sept. 22, 2015 /PRNewswire/ -- 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: 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
Minimum Investment Estimated Expense Ratio
------------------ -----------------------
Investor $3,000 0.40%
-------- ------ ----
Admiral $10,000 0.30%
------- ------- ----
ETF --- 0.30%
--- ----
Vanguard International Dividend Appreciation Index Fund
Minimum Investment Estimated Expense Ratio
------------------ -----------------------
Investor $3,000 0.35%
-------- ------ ----
Admiral $10,000 0.25%
------- ------- ----
ETF --- 0.25%
--- ----
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.
An Index and ETF Leader
Since pioneering the first index mutual fund for individual investors nearly four decades ago, Vanguard has become a leading provider of index vehicles, now offering 80 indexed funds and annuity portfolios with aggregate assets of $2 trillion. Vanguard 500 Index Fund, which celebrates its 40th anniversary next year, is now the world's second-largest mutual fund, with more than $205 billion in assets. Vanguard offers 68 low-cost ETFs in the U.S. Cash flow continues to be strong, with investors entrusting $49 billion to Vanguard ETFs year-to-date through August 2015.
About Vanguard
Vanguard is one of the world's largest investment management companies. As of August 31, 2015, Vanguard managed $3.2 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers 300 funds to its more than 20 million investors worldwide. For more information, visit vanguard.com.
About Nasdaq Global Information Services
Nasdaq Global Information Services (GIS) leverages reliable, scalable technology and robust distribution channels to provide comprehensive benchmarks and market data solutions across asset classes and regions. We equip financial institutions and investors with essential market transparency to make informed decisions. Our Global Data Products business provides innovative real-time and historical market data products, as well as analytic data solutions designed to meet new industry challenges. In addition, Nasdaq Global Indexes span geographies and asset classes to support financial product sponsors across a wide-spectrum of investable products and asset managers that measure risk and performance. Our diverse families include the Dividend Achievers, Global Equity, Fixed Income, Nordic, Green Economy and Commodity Indexes, based upon rules-based, transparent indexes. And with the 2015 acquisition of Dorsey, Wright & Associates, we are now of one of the largest index providers of Smart Beta strategies worldwide (based on AUM).
About Nasdaq
Nasdaq (Nasdaq:NDAQ) is a leading provider of trading, clearing, exchange technology, listing, information and public company services across six continents. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions.
Nasdaq is home to more than 3,600 listed companies with a market value of approximately $9.6 trillion and more than 10,000 corporate clients. To learn more, visit nasdaq.com/ambition or business.nasdaq.com.
About FTSE
FTSE Russell is a leading global provider of benchmarking, analytics and data solutions for investors, giving them a precise view of the market relevant to their investment process. A comprehensive range of reliable and accurate indexes provides investors worldwide with the tools they require to measure and benchmark markets across asset classes, styles or strategies.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.
FTSE Russell is focused on applying the highest industry standards in index design and governance, employing transparent rules-based methodology informed by independent committees of leading market participants. FTSE Russell fully embraces the IOSCO Principles and its Statement of Compliance has received independent assurance. Index innovation is driven by client needs and customer partnerships, allowing FTSE Russell to continually enhance the breadth, depth and reach of its offering.
FTSE Russell is wholly owned by London Stock Exchange Group. For more information, visit www.ftserussell.com
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All figures as of August 31, 2015 unless otherwise noted.
[1] Source: FTSE, for the period March 2004 to March 2015.
[2] Source: Nasdaq, for the period December 2004 to March 2015.
For more information on Vanguard funds, visit vanguard.com, or call 800-662-7447 to obtain a prospectus. Visit our website, call 800-662-7447, or contact your broker to obtain a prospectus for Vanguard ETF Shares. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.
Mutual funds and ETFs are subject to risks, including possible loss of principal. Investments issued by non-U.S. companies are subject to risks including country/regional risk, which is the chance that political upheaval, financial troubles, or natural disasters will adversely affect the value of securities issues by companies in foreign countries or regions; and currency risk, which is the chance that the value of a foreign investment, measured in U.S. dollars, will decrease because of unfavorable changes in currency exchange rates. Stocks of companies based in emerging markets are subject to national and regional political and economic risks and to the risk of currency fluctuations. These risks are especially high in emerging markets. Diversification does not ensure a profit or protect against a loss. Past performance is no guarantee of future returns. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.
Vanguard Marketing Corporation, Distributor. U.S. Patent Nos. 6,879,964; 7,337,138; 7,720,749;
7,925,573; 8,090,646; and 8,417,623.
London Stock Exchange Group companies include FTSE International Limited ("FTSE"), Frank Russell Company ("Russell"), MTS Next Limited ("MTS"), and FTSE TMX Global Debt Capital Markets Inc. ("FTSE TMX"). All rights reserved. "FTSE®", "Russell®", "MTS®", "FTSE TMX®" and "FTSE Russell" and other service marks and trademarks related to the FTSE or Russell indexes are trademarks of the London Stock Exchange Group companies and are used by FTSE, MTS, FTSE TMX and Russell under license. All information is provided for information purposes only. No responsibility or liability can be accepted by the London Stock Exchange Group companies nor its licensors for any errors or for any loss from use of this publication. Neither the London Stock Exchange Group companies nor any of its licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE All-World ex US High Dividend Yield Index or the fitness or suitability of the FTSE All-World ex US High Dividend Yield Index for any particular purpose to which [it][they] might be put.
"Dividend Achievers" is a trademark of The NASDAQ OMX Group, Inc. (collectively, with its affiliates, "NASDAQ OMX") and has been licensed for use by The Vanguard Group, Inc. Vanguard mutual funds are not sponsored, endorsed, sold, or promoted by NASDAQ OMX and NASDAQ OMX makes no representation regarding the advisability of investing in the funds. NASDAQ OMX MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO THE VANGUARD MUTUAL FUNDS.
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