Good news. Vanguard has reopened Vanguard Dividend Growth (VDIGX, $29.67), one of its very best funds. What’s more, the fund is relatively low-risk, making it ideal for a bull market that is showing signs of age.
Wellington Management’s Donald Kilbride has piloted Vanguard Dividend Growth since 2006, a period through July 31 of this year during which the fund returned an annualized 10.0%, or an average of 1.3 percentage points per year better than Standard & Poor’s 500-stock index. Wellington manages several funds under contract with Vanguard.
A big part of the fund’s success can be attributed to its miniscule expense ratio – just 0.22% annually. Very few actively managed stock funds come close to that low price.
Of course, low fees have been crucial to Vanguard’s long-term success.
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