Global Equity Fund (VHGEX)

Indexed to MSCI AC World Index Net

  Fact sheet (12/31/2017)

Summary of this fund

Vanguard Global Equity Fund seeks to provide long-term capital appreciation.

Investment approach

  • Seeks long-term capital appreciation.
  • Globally diversified with low individual stock concentrations.
  • Domestic and international equity.
  • Spans growth and value stocks and all market capitalizations.
  • Multimanager structure.
  • Fundamental and quantitative approaches.

PRICE AND DISTRIBUTIONS

Price and distributions

as of 02/16/2018

For funds with a fluctuating price per share, the net asset value (NAV) is the market value of a mutual fund's total assets, minus liabilities, divided by the number of shares outstanding. The value of a single share is called its share value or share price.

For money market funds that seek to maintain a stable price per share, the NAV is calculated by valuing securities at amortized cost, which approximates market value.

Change $/%
$32.15
– $0.01 negative change   – 0.03%

The annual rate of return on a share of stock, determined by dividing the annual dividend by its current share price. In a stock mutual fund, this figure represents the average dividend yield of the stocks held by the fund.

1.54%

KEY FUND FACTS

Key fund facts

Expense ratio
0.48% as of 01/25/2018
Lipper peer average
expense ratio
1.24% as of 12/31/2016
Designation
International World Stock
Inception on
08/14/1995
Net assets for
VHGEX
 
$6.1 billion as of 01/31/2018
Holdings 
1,422 as of 01/31/2018
Management style
Active
Benchmark
MSCI AC World Index Net
Turnover rate 
 46.60%(Fiscal year-end  09/30/2017)
CUSIP
922038203

Fees and minimums

Fees and minimums

A fee charged by some mutual funds when an investor buys shares. This fee is not a sales charge or load because it is paid directly to the fund to offset the costs of trading certain securities.

None

A fee charged by some mutual funds when an investor sells shares. A redemption fee differs from a back-end load because the money is paid back into the fund. Many funds charge redemption fees only when shares are bought and then sold within a specific period of time, generally in an effort to discourage market-timing and short-term trading. Some brokers also charge their clients redemption fees for the sale of securities.

None
Minimum investment:
None

Large transactions may require notification

Large transaction policy  

STYLEBOX

Stylebox

Equity
Broadly diversified portfolio of stocks from U.S. and non-U.S. markets.



Central tendency
Expected range

How to read our stylebox  

Objective

Vanguard Global Equity Fund seeks to provide long-term capital appreciation.

Investment approach

  • Seeks long-term capital appreciation.
  • Globally diversified with low individual stock concentrations.
  • Domestic and international equity.
  • Spans growth and value stocks and all market capitalizations.
  • Multimanager structure.
  • Fundamental and quantitative approaches.

Total returns

as of 12/31/2017

View as:

as of 12/31/2017

View as:
30%
25
20
15
10
5
0%
 
 
 
 
 
  YTD 1 year 5 year 10 year Since

08/14/1995

NAV 
27.78% 27.78% 12.58% 4.95% 9.14%

Spliced Global Equity Index

*
23.97% 23.97% 10.80% 4.65%

Note: Fee adjusted for mutual funds where applicable.

* MSCI All Country World Index returns gross of taxes through March 31, 2007; MSCI All Country World Index returns net of withholding taxes thereafter.

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited.


People and process

Firms

Baillie Gifford Overseas Ltd.
Marathon Asset Management LLP
Acadian Asset Management LLC

Product management

Vanguard Global Equity Fund seeks long-term capital appreciation by investing worldwide in growth and value stocks of all capitalization sizes. The advisors’ bottom-up stock selection results in a diversified global portfolio invested across sectors and both developed and emerging markets.

Firm and manager details  

Regional exposure as of 01/31/2018

 as of 01/31/2018
  Region  VHGEX

MSCI All Country World Index Net

+/- Weight
Europe 18.2% 20.9% – 2.7%
Pacific 13.0% 13.5% – 0.5%
Emerging Markets 13.5% 10.2% 3.3%
North America 54.9% 55.2% – 0.3%
Middle East 0.2% 0.1% 0.1%
Other 0.2% 0.1% 0.1%
0%
60%
Total 100.0% 100.0%  

Top 10 countries as of 01/31/2018

 as of 01/31/2018
Country Region VHGEX

MSCI All Country World Index Net

+/- Weight
United States North America 50.7% 52.2% – 1.5%
Japan Pacific 6.6% 7.8% – 1.2%
Canada North America 4.2% 3.0% 1.2%
United Kingdom Europe 3.9% 5.7% – 1.8%
China Emerging Markets 3.7% 3.7% 0.0%
Korea Pacific 3.2% 1.8% 1.4%
Germany Europe 2.8% 3.2% – 0.4%
Taiwan Emerging Markets 2.4% 1.4% 1.0%
Switzerland Europe 2.3% 2.6% – 0.3%
South Africa Emerging Markets 2.1% 0.8% 1.3%
Top 10 equals 81.9% of stock

Country diversification details  

Sector weightings as of 01/31/2018

as of 01/31/2018
  Sector  VHGEX

MSCI All Country World Index Net

+/- Weight
Information Technology 22.1% 18.4% 3.7%
Financials 20.4% 19.0% 1.4%
Consumer Discretionary 14.4% 12.3% 2.1%
Industrials 11.8% 10.9% 0.9%
Health Care 11.2% 10.7% 0.5%
Consumer Staples 8.7% 8.4% 0.3%
Materials 4.4% 5.5% – 1.1%
Energy 4.0% 6.3% – 2.3%
Real Estate 1.4% 2.9% – 1.5%
Telecommunication Services 0.8% 2.9% – 2.1%
Utilities 0.8% 2.7% – 1.9%
Other 0.0% 0.0% 0.0%
0%
25%
Total 100.0% 100.0%

Sector categories are based on the Global Industry Classification Standard, except for the "Other" category (if applicable), which includes securities that have not been provided a Global Industry Classification Standard as of the effective reporting period.

Top 10 holdings as of 01/31/2018

 as of 01/31/2018
Rank Holding
1 Alphabet Inc.
2 Amazon.com Inc.
3 Samsung Electronics Co. Ltd.
4 Naspers Ltd.
5 Taiwan Semiconductor Manufacturing Co. Ltd.
6 Prudential plc
7 Berkshire Hathaway Inc.
8 Coca-Cola Co.
9 Microsoft Corp.
10 Royal Caribbean Cruises Ltd.
Top 10 equals 13.3% of net assets

Portfolio holdings may exclude any temporary cash investments and equity index products.

Holdings policy for this fund  

Fundamentals

Equityas of 01/31/2018 VHGEX

MSCI All Country World Index Net

Number of equity 1,422 2,495
Median market cap $30.9 billion $59.6 billion
P/E ratio 19.5x 19.8x
P/B ratio 2.7x 2.4x
Turnover rate 46.6% Fiscal year end 9/2017 N/A
% Emerging 13.50% 10.20%
% Developed 86.50% 89.80%

Risk and volatility as of 01/31/2018

as of 01/31/2018
  VHGEX

Spliced Global Equity Index

R-squared N/A 0.94
Beta N/A 0.94
Alpha 0.17 N/A
Standard deviation 10.43% 10.78%
Sharpe ratio 1.25 1.07

Risk and volatility are based on the share class with the earliest inception date.

Risk measures are calculated from trailing 36-month fund returns relative to the associated benchmarks.

An investment in the fund could lose money over short or even long periods. You should expect the fund’s share price and total return to fluctuate within a wide range, like the fluctuations of the overall stock market. The fund’s performance could be hurt by:

  • Stock market risk: The chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices. The fund’s investments in foreign stocks can be riskier than U.S. stock investments. Foreign stocks tend to be more volatile and less liquid than U.S. stocks. The prices of foreign stocks and the prices of U.S. stocks may move in opposite directions.
  • Investment style risk: The chance that returns from small- and mid-capitalization stocks, to the extent that the fund invests in them, will trail returns from the overall stock market. Historically, these stocks have been more volatile in price than the large-cap stocks that dominate the overall market, and they often perform quite differently.
  • Country/regional risk: The chance that world events—such as political upheaval, financial troubles, or natural disasters—will adversely affect the value of securities issued by companies in foreign countries or regions. Because the fund may invest a large portion of its assets in securities of companies located in any one country or region, its performance may be hurt disproportionately by the poor performance of its investments in that area. Country/regional risk is especially high in emerging markets.
  • Currency risk: The chance that the value of a foreign investment, measured in U.S. dollars, will decrease because of unfavorable changes in currency exchange rates.
  • Manager risk: The chance that poor security selection will cause the fund to underperform relevant benchmarks or other funds with a similar investment objective.