Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Vanguard Dividend Growth Fund is closed to new investors as of July 28, 2016. The fund will remain open to existing investors for additional purchases.
497 1 ps_57072016.htm VANGUARD DIVIDEND GROWTH FUND
Vanguard Dividend Growth Fund
Supplement to the Prospectus and Summary Prospectus
Important Note Regarding Vanguard Dividend Growth Fund
Vanguard Dividend Growth Fund is closed to all new investors (with the exception of (1) investors who are added and invest in the Fund only through technology-driven model portfolios and (2) participants who invest in the Fund only through defined contribution plans that offer the Fund as an existing option).
The Fund will remain closed until further notice and there is no specific time frame for when the Fund will reopen. During the Fund’s closed period, all current shareholders may continue to purchase, exchange, or redeem shares of the Fund online, by telephone, or by mail.
The Fund may modify these transaction policies at any time and without prior notice to shareholders. You may call Vanguard for more detailed information about the Fund’s transaction policies. Participants in employer-sponsored plans may call Vanguard Participant Services at 800-523-1188. Investors in nonretirement accounts and IRAs may call Vanguard’s Investor Information Department at 800-662-7447.
“I think they’re protecting the longer-term interests of their investors,” said Josh Brown, chief executive officer at Ritholtz Wealth Management. “I think it is a fantastic move they are making. Size is negatively correlated with performance.”
The WSJ article posted by Ted provided all the details why Vanguard closed this fund. Wish they have done that much earlier before it reached $30 billions in asset.
There was a possibility that VG may have added one more shop to manage part of the funds as they have done in other cases. But the manager's exceptional performance made them stay put and close ( joining the ranks of closed funds vpccx, vhcox, vpmcx as far as I know)
There was a possibility that VG may have added one more shop to manage part of the funds as they have done in other cases. But the manager's exceptional performance made them stay put and close ( joining the ranks of closed funds vpccx, vhcox, vpmcx as far as I know)
Unlike Primecap, Capital Opportunity, and Primecap Core, Dividend Growth is even closed to Vanguard Flagship members that do not already have an existing position.
Regarding adding another outside firm to manage part of the assets, something tells me that Wellington Management or Primecap Management would not allow it.
Glad we got in on the admiral shares when we did, but at 30 billion, even though it's a large/giant cap type of fund, that's a lot of assets. It would be great if VG would also close Wellington...
Meh. Not seeing what size has to do with it, pro or con. Chart it against PRBLX, SCHD, and DVY (say) the last 5/4/3/2/1y and compare: sometimes slightly better, sometimes slightly worse, nothing marked either way. Lower TTM yield too, for some reason.
Glad we got in on the admiral shares when we did, but at 30 billion, even though it's a large/giant cap type of fund, that's a lot of assets. It would be great if VG would also close Wellington...
Vanguard Dividend Growth only comes in one flavor and that is Investor Shares.
Meh. Not seeing what size has to do with it, pro or con.
"Investors have poured $3 billion into the fund over the past six months and its assets have nearly doubled in the past three years"
Don Kilbride runs a concentrated portfolio of around 45 high quality stocks. Theoretically, by closing the fund, he can continue to beat the index by investing in his best ideas at a price point that he finds acceptable. Kilbride either believes that he can not effectively employ more assets at this time or he believes that he is bringing home enough income.
Of course, the management team of PRBLX seems to feel differently by keeping their fund open, but the fund is also 1/3rd the size of VDIGX.
Glad we got in on the admiral shares when we did, but at 30 billion, even though it's a large/giant cap type of fund, that's a lot of assets. It would be great if VG would also close Wellington...
Vanguard Dividend Growth only comes in one flavor and that is Investor Shares.
Mona
You're right, we didn't get a greater discount when we purchased, which I guess at around 30 basis points or so isn't too bad. Just Admiral with Wellington...oh well
Comments
Regards,
Ted
https://pressroom.vanguard.com/press_release/Press_release_vanguard_closes_dividend_growth_fund_072816.html
M* Snapshot: VDIGX
http://www.morningstar.com/funds/XNAS/VDIGX/quote.html
WSJ Article:
http://blogs.wsj.com/moneybeat/2016/07/28/investors-thirst-for-yield-pushes-vanguard-to-turn-off-the-tap/
497 1 ps_57072016.htm VANGUARD DIVIDEND GROWTH FUND
Vanguard Dividend Growth Fund
Supplement to the Prospectus and Summary Prospectus
Important Note Regarding Vanguard Dividend Growth Fund
Vanguard Dividend Growth Fund is closed to all new investors (with the
exception of (1) investors who are added and invest in the Fund only through
technology-driven model portfolios and (2) participants who invest in the Fund
only through defined contribution plans that offer the Fund as an existing option).
The Fund will remain closed until further notice and there is no specific time
frame for when the Fund will reopen. During the Fund’s closed period, all current
shareholders may continue to purchase, exchange, or redeem shares of the Fund
online, by telephone, or by mail.
The Fund may modify these transaction policies at any time and without prior
notice to shareholders. You may call Vanguard for more detailed information
about the Fund’s transaction policies. Participants in employer-sponsored plans
may call Vanguard Participant Services at 800-523-1188. Investors in
nonretirement accounts and IRAs may call Vanguard’s Investor Information
Department at 800-662-7447.
Unlike Primecap, Capital Opportunity, and Primecap Core, Dividend Growth is even closed to Vanguard Flagship members that do not already have an existing position.
Regarding adding another outside firm to manage part of the assets, something tells me that Wellington Management or Primecap Management would not allow it.
Mona
Vanguard Dividend Growth only comes in one flavor and that is Investor Shares.
Mona
Don Kilbride runs a concentrated portfolio of around 45 high quality stocks. Theoretically, by closing the fund, he can continue to beat the index by investing in his best ideas at a price point that he finds acceptable. Kilbride either believes that he can not effectively employ more assets at this time or he believes that he is bringing home enough income.
Of course, the management team of PRBLX seems to feel differently by keeping their fund open, but the fund is also 1/3rd the size of VDIGX.
Mona