Previously announced changes to two actively managed Vanguard funds go into effect

September 26, 2018


Restructured investment advisory arrangements for Vanguard Emerging Markets Select Stock Fund and Vanguard Global Capital Cycles Fund (formerly Vanguard Precious Metals and Mining Fund) are now in effect.

Vanguard Emerging Markets Select Stock Fund adds new investment advisor

In keeping with previously announced plans, Vanguard Emerging Markets Select Stock Fund (VMMSX) added Baillie Gifford Overseas Ltd. as an investment advisor, replacing M&G Investment Management Limited.

The addition of Baillie Gifford allows the fund to retain its character as a diversified emerging markets equity offering with a combination of differentiated active managers. The combination provides an attractive blend of proven managers and is designed to deliver long-term performance to shareholders.

Oaktree Capital Management, L.P., Pzena Investment Management, LLC, and Wellington Management Company LLP continue to serve as the fund's other advisors.

The fund's expense ratio of 0.92% (for Investor Shares, the only class available) is not expected to change.

Vanguard Precious Metals and Mining Fund is restructured and renamed

Also in keeping with previously announced changes, Vanguard Precious Metals and Mining Fund (VGPMX) has implemented a new investment strategy, changed its benchmark, and been renamed Vanguard Global Capital Cycles Fund.

Although these changes will not affect the fund's investment objective, the changes are intended to allow for continued exposure to the precious metals and mining industry while reducing volatility through increased diversification. The Global Capital Cycles Fund will continue to provide lower correlations relative to other, more traditional equity strategies. The fund will compare its performance to a custom index composed of approximately 25% precious metals and mining companies and 75% broad global equity market exposure.

Wellington Management Company LLP has replaced M&G Investment Management Limited as the fund’s investment advisor. Going forward, Wellington Management will employ a capital cycles strategy. The strategy will also focus on securities of companies with scarce, high-quality infrastructure assets—typically in utilities and telecommunications—that are viewed as irreplaceable and therefore believed to have enduring value. 

The fund's estimated expense ratio (for Investor Shares, the only class available) is expected to increase from 0.36% to 0.37% of the fund's average net assets.


  • For more information about Vanguard funds, visit or call 800-997-2798 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.
  • All investing is subject to risk, including the possible loss of the money you invest.
  • Investments in stocks issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. These risks are especially high in emerging markets. Prices of small- and mid-capitalization stocks often fluctuate more than those of large-company stocks. Funds that concentrate on a relatively narrow market sector face the risk of higher share-price volatility.
  • Diversification does not ensure a profit or protect against a loss.

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