Home Adviser Fund Update Vanguard Launching New Funds Published September 25, 2015 Vanguard to Launch Overseas DividendA cash payment to investors who own stock in the company. Funds On September 22, Vanguard filed plans with the SEC to launch International Dividend Appreciation Index and International High Dividend YieldYield is a measure of the income on an investment in relation to the price. There are several ways to measure yield. The current yield of a security is the income over the past year (either dividends or coupon payments) divided by the current price. Index in both open-end and ETFA type of security which allows investors to indirectly invest in an underlying basket of financial instruments (these may include stocks, bonds, commodities or other types of instruments). Shares in an ETF are publicly traded on an exchange, and the price of an ETF’s shares will fluctuate throughout the trading day (traditional mutual funds trade only once a day). For example, one popular ETF tracks the companies in the S&P 500, so buying a share of the ETF gets an investor exposure to all 500 companies in the index. formats. The funds are set to debut on December 7. The funds fill a couple of niches in Vanguard’s lineup for index investors seeking dividend-paying foreign stocksA financial instrument giving the holder a proportion of the ownership and earnings of a company. for their portfolios. With bondA financial instrument representing an IOU from the borrower to the lender. Bond issuers promise to pay bond holders a given amount of interest for a pre-determined amount of time until the loan is repaid in full (otherwise known as the maturity date). Bonds can have a fixed or floating interest rate. Fixed-rate bonds pay out a pre-determined amount of interest each year, while floating-rate bonds can pay higher or lower interest each year depending on prevailing market interest rates. yieldsYield is a measure of the income on an investment in relation to the price. There are several ways to measure yield. The current yield of a security is the income over the past year (either dividends or coupon payments) divided by the current price. still low (and looking to stay that way for some time), stockA financial instrument giving the holder a proportion of the ownership and earnings of a company. funds with an income component have appeal for investors, and Vanguard is looking to capitalize on this. Much like Vanguard’s U.S.-only versions of these funds, Dividend Appreciation Index and High Dividend Yield Index (both of which launched in 2006), there is some overlap to their objectives, as they both center their strategies around dividend-paying stocks. But if they follow in the footsteps of their domestic-fund siblings, International Dividend Appreciation Index will have a higher-quality portfolio of more established, stable companies, while International High Dividend Yield Index should generate a higher yieldYield is a measure of the income on an investment in relation to the price. There are several ways to measure yield. The current yield of a security is the income over the past year (either dividends or coupon payments) divided by the current price.. International Dividend Appreciation Index will carry a 0.35% expense ratio for its Investor-class shares, while the Admiral and ETF shares will charge 0.25%. The fund will track a variant of the NASDAQ International Dividend Achievers Index called the NASDAQ International Dividend Achievers Select Index, which consists of around 200 stocks of developed and emerging market companies with a record of increasing their annual dividendsA cash payment to investors who own stock in the company. over time. International High Dividend Yield Index will charge 0.40% for Investor shares and 0.30% for Admiral and ETF shares. It will track a brand new index, the FTSE All-World ex US High Dividend Yield Index, which consists of around 800 of the highest yielding large-cap and mid-cap stocks in the developed and emerging markets. It will be interesting to see how well these new funds match up with or complement their domestic-focused counterparts. It makes sense that Vanguard is testing the foreign dividendA cash payment to investors who own stock in the company. stock fund waters with index products, but we would have liked to see an actively managed option as well. Time will tell on both counts. Fidelity Manager Taking Leave Earlier this week, Fidelity announced that Charles Myers, portfolio manager of Small Cap Discovery and Fidelity Series Small Cap Discovery, would be taking a leave of absence starting March 1, 2016. He plans to return next September. Myers’ co-manager on Fidelity Small Cap Value and Advisor Small Cap Value since January 2013, Derek Janssen, will serve as interim manager on the Small Cap Discovery funds during his leave. Janssen will also assume sole responsibility for the two Small Cap Value portfolios beginning January 1. Janssen is a nine-year Fidelity vet and has extensive small-cap expertise, with a very similar investment philosophy and portfolio construction style as Myers. Myers’ sabbatical is not for health reasons; he merely wants to take time off to travel and spend time with his family, and while he will not be actively involved with fund management over the period, he will be available to consult if he is needed. Janssen provides capable hands to care-take the funds—he indicated that he’d add when positions get cheap and trim when they get expensive, but is not expected to make substantial changes unless market activity is significant and dictates such activity. We do not feel that Myers’ leave should be a concern for investors the Small Cap Discovery funds. About Adviser Investments Adviser Investments is a full service wealth management firm, offering investment management, financial and tax planning, managed individual bond portfolios, and 401(k) advisory services. We’ve been helping individuals, trustsA legal document that functions as an instruction manual to how you want your money managed and spent in your later years as well as how your assets should be distributed after your death. Assets placed in a trust are generally safe from creditors and can be sold by the trustee in short order, avoiding the lengthy and costly probate process., institutions and foundations since 1994, and have more than 3,500 clients across the country and over $6 billion in assets under management. Our portfolios encompass actively managed funds, ETFsA type of security which allows investors to indirectly invest in an underlying basket of financial instruments (these may include stocks, bonds, commodities or other types of instruments). Shares in an ETF are publicly traded on an exchange, and the price of an ETF’s shares will fluctuate throughout the trading day (traditional mutual funds trade only once a day). For example, one popular ETF tracks the companies in the S&P 500, so buying a share of the ETF gets an investor exposure to all 500 companies in the index., socially responsible investments and tactical asset allocation strategies, with particular expertise in Fidelity and Vanguard mutual funds. We take pride in being The Adviser You Can Talk To. Our minimum account size is $350,000. To see a full list of our awards and recognitions, click here, and for more information, please visit www.adviserinvestments.com or call 800-492-6868. Disclaimer: This material is distributed for informational purposes only. The investment ideas and expressions of opinion may contain certain forward-looking statements and should not be viewed as recommendations, personal investment advice or considered an offer to buy or sell specific securities. Data and statistics contained in this report are obtained from what we believe to be reliable sources; however, their accuracy, completeness or reliability cannot be guaranteed. Our statements and opinions are subject to change without notice and should be considered only as part of a diversified portfolio. You may request a free copy of the firm’s Form ADV Part 2, which describes, among other items, risk factors, strategies, affiliations, services offered and fees charged. Past performance is not an indication of future returns. The tax information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice. We do not provide legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation. The Barron’s rankings consider factors such as assets under management, revenue produced for the firm, regulatory record, quality of practice and philanthropic work. This award does not consider client experience and is not indicative of future performance. Editors at the Financial Times bestowed “elite” status on 300 firms in the U.S., as determined by assets under management, asset growth, longevity, compliance record, industry certifications and online accessibility. © 2018 Adviser Investments, LLC. All Rights Reserved.