Diversified Equity Fund (VDEQX)

Indexed to MSCI US Broad Market Index

  Fact sheet (12/31/2013)

Summary of this fund

Vanguard Diversified Equity Fund seeks to provide long-term capital appreciation and dividend income.

Investment approach

  • Broadly diversified, fund of funds structure.
  • Seeks long-term capital appreciation and dividend income.
  • Eight underlying actively managed Vanguard stock funds offer exposure to the entire U.S. stock market.
  • Advisory services to underlying funds provided by 15 advisors.
  • Asset allocation among underlying funds automatically rebalanced.

About the benchmark

The MSCI US Broad Market Index combines the MSCI US Investable Market 2500 and MSCI US Micro Cap Indexes to provide exposure to more than 99.5% of the capitalization of the U.S. equity market, including large-, mid-, small-, and micro-cap companies.

PRICE AND DISTRIBUTIONS

Price and distributions

as of 04/17/2014

NAV

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.

Change $/%
$30.76
$0.07 positive change   0.23%
SEC yield

A non-money market fund's SEC yield is based on a formula mandated by the Securities and Exchange Commission (SEC) that calculates a fund's hypothetical annualized income, as a percentage of its assets. A security's income, for the purposes of this calculation, is based on the current market yield to maturity (in the case of bonds) or projected dividend yield (for stocks) of the fund's holdings over a trailing 30 day period. This hypothetical income will differ (at times, significantly) from the fund's actual experience; as a result, income distributions from the fund may be higher or lower than implied by the SEC yield.



The SEC yield for a money market fund is calculated by annualizing its daily income distributions for the previous seven days.

0.93% B

BASED ON HOLDINGS' YIELD TO MATURITY/DIVIDEND FOR LAST 30 DAYS OF PRIOR MONTH

KEY FUND FACTS

Key fund facts

Acquired fund fees and expenses*
0.40% as of 02/26/2014
Lipper peer average
expense ratio
1.17% as of 12/31/2013
Designation
Domestic Large Blend
Inception on
06/10/2005
Net assets for
VDEQX
 
$1.5 billion as of 03/31/2014
Management style
Active
Benchmark
MSCI US Broad Market Index (MZ1USB)
Turnover rate 
 5.00%(Fiscal year-end  10/31/2013)

* The acquired fund fees and expenses of the underlying funds.

Fees and minimums

Fees and minimums

Purchase fee:

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
Redemption fee:

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:
$3,000

ETF Knowledge Center™   

Objective

Vanguard Diversified Equity Fund seeks to provide long-term capital appreciation and dividend income.

Investment approach

  • Broadly diversified, fund of funds structure.
  • Seeks long-term capital appreciation and dividend income.
  • Eight underlying actively managed Vanguard stock funds offer exposure to the entire U.S. stock market.
  • Advisory services to underlying funds provided by 15 advisors.
  • Asset allocation among underlying funds automatically rebalanced.

About the benchmark

The MSCI US Broad Market Index combines the MSCI US Investable Market 2500 and MSCI US Micro Cap Indexes to provide exposure to more than 99.5% of the capitalization of the U.S. equity market, including large-, mid-, small-, and micro-cap companies.

Total returns

as of 03/31/2014

View as:

as of 03/31/2014

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

06/10/2005

NAV 
1.96% 24.72% 22.13% 7.65%
Benchmark

MSCI US Broad Market Index

*
2.01% 22.76% 22.09%

Note: Fee adjusted for mutual funds where applicable.

* Tracks virtually all stocks that trade in the U.S. stock market.

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

Vanguard Equity Investment Group

Product management

Vanguard Diversified Equity Fund seeks to provide long-term capital appreciation and income through investments in eight underlying Vanguard domestic equity funds. Vanguard Equity Investment Group maintains the allocation of this fund of funds among its underlying funds. The fund provides access to the investment expertise of 14 advisors—13 of which are external firms hired by each underlying fund’s board of trustees. Because each advisor employs its own distinct approach in seeking competitive long-term results, the fund provides a wide range of complementary strategies in one portfolio.The eight underlying Vanguard funds are managed by the following companies: Barrow, Hanley, Mewhinney & Strauss, LLC; Century Capital Management, LLC; Chartwell Investment Partners, Inc.; Delaware Investments; Franklin Portfolio Associates, LLC; Granahan Investment Management, Inc.; Hotchkis and Wiley Capital Management, LLC; Jennison Associates LLC; Kalmar Investment Advisers; Lazard Asset Management LLC; Pzena Investment Management, LLC; The Vanguard Group; Wellington Management Company, LLP; and William Blair & Company, LLC.

Firm and manager details  

Risk and volatility as of 03/31/2014

as of 03/31/2014
  VDEQX Benchmark

MSCI US Broad Market Index

R-squared N/A 0.99
Beta N/A 1.07
Alpha – 0.09 N/A
Standard deviation 14.09% 13.06%
Sharpe ratio 1.03 1.12

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 stock prices and periods of falling stock prices.
  • Manager risk: The chance that poor security selection or focus on securities in a particular sector, category, or group of companies will cause the fund to underperform relevant benchmarks or other funds with a similar investment objective.



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