It is a large blend domestic stock fund. From Vanguard's website:
This fund is designed to provide investors with some income while offering exposure to dividend-focused companies across all industries. The fund focuses on high-quality companies that have both the ability and the commitment to grow their dividends over time. One of the fund’s risks is the possibility that returns from dividend-paying stocks will trail returns from the overall stock market during any given period. Another risk is the volatility that comes with the fund’s full exposure to the stock market. An investor with a well-balanced, long-term portfolio who seeks exposure to dividend-focused companies may wish to consider this fund.It has outperformed the Vanguard S&P 500 Index Fund and the Total Stock Market Index Fund over the past five years. The fund tends to own 50 or less large dividend-paying solid companies.
Month-end ten largest holdings
(29.6% of total net assets) as of 06/30/2012
1 PepsiCo Inc
2 Johnson & Johnson
3 Occidental Petroleum Corp
4 Target Corp
5 Exxon Mobil Corp
6 Automatic Data Processing Inc
7 Microsoft Corp
8 United Parcel Service Inc
9 Medtronic Inc
10 International Business Machines Corp
SEC Yield: 2.21%
Expense Ratio: 0.31%
YTD Total Return: 6.3%
Total Assets: 10.5 billion
Minimum Investment: $3,000
This fund can be purchased from Vanguard, Fidelity or Schwab.
8 comments:
Hon,
Why do you think anyone will be buying that fund?
"This fund can be purchased from Vanguard, Fidelity or Schwab."
If you buy though Schawb it costs you $76 to buy and another $76 to sell.
Is there a ETF equivalent for this fund?
Schwabed
bigleagueblogger....Put your thinking cap on.... :)
schwabed,
To answer your question would take some research time. I don't have it to spare right now. I'm sure you can find the answer.
Schwabed:
There are many other dividend oriented mutual funds and ETFs.
Two ETFs from Vanguard are VIG and VYM. Passively managed to duplicate different indices. I will leave it to you to research that on your own. Yields, 2.27% and 3.28% respectively, and with 0.13% annual expenses.
-- Frankj
I own Vanguard VIG ETF which has been very good and is rated five stars on Morningstar. Returns have been the following
2008 -26.63%
2009 19.57
2010 14.74
And 2011 6.16
I don't know about anyone else but when I look at my portfolio over the last five years, most of my gains are from dividends.
As a contrast to public sector pensions:
How the SSA screws productive members of society
tfb
You're better off purchasing the cream of the crop of the individual holdings for much better yield. Mutual funds in general are ka ka.
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