Vanguard Explorer Value Exposed
A closer look at the family's newest actively managed fund.
Vanguard Explorer Value (VEVFX), the latest addition to the family's actively managed fund lineup, has been live for about two months. That's not long enough to prove itself, but it's sufficient for an early read on how it compares with the competition. Bottom line--the fund shows some promise. Here are the details.
The Fee Lowdown
Like all Vanguard subadvised funds, this one is among the cheapest actively managed options that retail investors can find in its category. Its 0.59% fee could rise or fall based on the how the fund's subadvisors perform versus their benchmarks over trailing three-year periods, but it's likely to stay lower than most of its peers.
The fund may be new, but the managers aren't. The average manager tenure of each of the fund's three subadvisory teams--Frontier, Cardinal, and Sterling Capital Management--is at least eight years, based on the firms' similar separate accounts. Each of the managers--Thomas Duncan and William Teichner of Frontier; Amy Minella, Eugene Fox, and Robert Kirkpatrick of Cardinal; and Eduardo Brea and Brian Walton of Sterling--has experience beyond his or her separate accounts, including other subadvisory assignments. Cardinal manages Brown Cardinal Small Companies Fund (BIACX), and Sterling runs BB&T Mid Cap Value (OVEAX). These aren't raw recruits.
Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.