Vanguard Emerging Market Stock Index - Bronze

FUND RESEARCH UPDATE: New Fund rating of Bronze.

Ruli Viljoen 3 December, 2013 | 9:30AM
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We have initiated coverage of the Vanguard Emerging Market Stock Index with a Morningstar Analyst Rating™ of Bronze. The fund offers exposure to the MSCI Emerging Market Index by holding all of the index’s constituents. Since its inception in 2006, the fund has tracked its benchmark very closely. Over the trailing five-year period, the Vanguard Emerging Market Stock Index underperformed its benchmark by 0.41% on an annualised basis net of fees, while charging a TER of 0.40%. The fund’s performance has landed in the second quartile of its category over the trailing five-year period. Compared with other passive funds, the Vanguard Emerging Markets Stock Index has looked rather average as measured in terms of performance but fees have been reduced from 0.65% recently. We expect this to have a positive impact on the performance going forward. A positive note is the fund’s favourable split of securities lending revenue. The managers return 95% of revenues to shareholders. This is much higher than any competitor engaging in this practice. Low costs, strong tracking and benchmark-relative performance, and a solid parent all warrant our positive rating.

See the latest Morningstar OBSR fund rating news here.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Vanguard Emerg Mkts Stk Idx Inv USD Acc217.53 USD-0.50Rating

About Author

Ruli Viljoen

Ruli Viljoen  is Head of Manager Selection, Morningstar UK

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