Wellington Management Company LLP, Vanguard’s oldest and largest external advisory partner, possesses the deep global research capabilities needed to evaluate companies across both developed and emerging international markets. Selecting from the universe of stocks outside the U.S., Wellington Management is expected to create a portfolio of 60 to 100 stocks that offer broad exposure to international markets.
Launch begins with a 2-week subscription period
From October 1 through October 15, the fund is in a subscription period, during which all Investor Shares are available for $10 per share and all Admiral™ Shares are available for $20 per share. That money is held temporarily in money market investments or cash.
Starting October 16, Wellington Management will use the money gathered during the subscription period to begin investing in stocks according to the fund’s strategy. At that time, you can expect to see share prices begin to fluctuate based on the performance of the fund’s underlying investments.
Why international investing’s a good thing
International and U.S. markets are exposed to different economic and market forces at different times. The result? They often move independently from one another.
An internationally diversified portfolio creates the opportunity for you to benefit from varying performance cycles of investments around the world. International investments may also act as a buffer against U.S. market volatility.
With the International Core Stock Fund, you have an opportunity to look beyond U.S. markets and realize the significant diversification opportunity provided by international investing.
International investing: Sounds good, but how much?
Once you decide to invest internationally, the next question is: How much exposure should your portfolio have?
Consider dedicating about 40% of the stock portion of your portfolio to international investments, according to our research.
The International Core Stock Fund offers that allocation in a single broad-market fund. And as an actively managed alternative to Vanguard Total International Stock Index Fund, the fund also offers the potential to outperform.
A strategy for building an “all weather” portfolio
With its long and distinguished history of investing in non-U.S. stock markets, Wellington Management has the global reach to try to identify attractive, high-return opportunities for the fund.
The fund manager’s priority is to outperform the MSCI ACWI ex USA Index, the fund’s benchmark. They’ll employ a multi-disciplinary approach in their attempt to build an “all weather” portfolio designed to limit the fund’s exposure to risk through centralized risk management.
The fund’s investment strategy blends value and growth styles, with some overweighting toward large-capitalization stocks. It also covers a range of international regions and sectors with no significant over-weightings or under-weightings.
Costs and minimums
Vanguard’s history with active management
The International Core Stock Fund joins our lineup of more than 70 actively managed mutual funds that hold $1.3 trillion in assets.*
Vanguard’s actively managed stock, bond, and balanced funds cover a variety of U.S. and international investments and have consistently outperformed peers over various time periods.**
We attribute our legacy of outperformance to three key factors: our exceptional investment talent; our proven, disciplined approach; and our unique alignment with our clients.
*Source: Vanguard, as of June 30, 2019.
**Number of Vanguard actively managed funds that outperformed their Lipper peer-group averages for periods ended June 30, 2019: for the 1-year period, 85 of 120 Vanguard funds; for the 3-year period, 88 of 108 Vanguard funds; for the 5-year period, 91 of 100 Vanguard funds; for the 10-year period, 86 of 96 Vanguard funds. Results will vary for other time periods. Only funds with a minimum of 1-, 3-, 5-, or 10-year history, respectively, were included in the comparison. Source: Lipper, a Thomson Reuters Company. Note that the competitive performance data shown represent past performance, which is not a guarantee of future results. View fund performance