Should Vanguard Not Have Suggested The Dividend Appreciation Fund To Shareholders?

Vanguard earned mostly praise recently for its decision to close the Dividend Growth Fund (MUTF:VDIGX) at the end of July. The reason given is the one that investment companies often give when closing a fund. The fund's advisor wants to be able to continue producing above average returns and a rapid influx of cash hinders its ability to do so.

 

Behind closed doors, Wellington Management, the company that manages the fund, would likely give two reasons for closing the fund. Publicly, they'll say assets are growing too fast to manage. Vanguard said that $3 billion in flows has come into the $30 billion fund over the past three months while overall assets have doubled over the past three years. Privately, they'd probably admit that they don't like the market they're investing in and want to take preventative measures before new investors potentially get clubbed.

Click the button below to read the rest of this original article on Seeking Alpha.

ETF Research

We cover ETFs across all sectors, regions and markets. We analyze the portfolios themselves as well as the macro environments that affect them.

Mutual Fund Research

We do mutual fund research too! Although not covered quite as in-depth as the ETF world, we've still profiled many of the big names!

Investing Strategy

Everything from retirement planning to 401(k) investing to options trading strategies and everything in between!

Next Steps...

Got a question? A comment? A fund you want to see profiled? Let us know!

Subscribe to receive the ETF Focus Weekly newsletter absolutely FREE!

* indicates required

Be the first to comment

Leave a Reply

Your email address will not be published.


*