Vanguard Developed Markets Index InvVDMIX

Fund Research and Analysis

by Alex Bryan

Although correlations between stock markets have shot up in the wake of the financial crisis, global diversification is as important as ever. Vanguard Developed Markets Index is one of the most cost-effective vehicles available to diversify a portfolio Read more

Process Pillar:Positive

The fund tracks the MSCI EAFE Index by owning nearly every stock in the index. This float-adjusted market-cap-weighted index provides exposure to 22 developed markets, excluding the U.S. and Canada. Read more

Performance Pillar:Positive

The fund's long-term index tracking record is excellent. Over the past 10-, five-, and three-year periods, it almost identically matched the MSCI EAFE's returns. However, Vanguard's fair-value pricing Read more

People Pillar:Positive

While they may have less influence on performance than active managers, quality index fund managers can make a difference. Experienced managers can reduce tracking error through superior trade execution, cash management, and securities lending. Donald Read more

Price Pillar:Positive

Vanguard charges a low 0.12% expense ratio for the fund's Admiral shares and 0.20% for the Investor shares, making it one of the cheapest international funds on the market. The minimum investment for Read more