Vanguard Dividend Growth's Closure Sparks Change in Bucket Portfolios
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On July 28, Vanguard announced the closure of the Gold-rated Vanguard Dividend Growth (VDIGX), effective immediately. In a statement, Vanguard CEO Bill McNabb says the firm was closing the fund "to help ensure that the advisor's ability to produce competitive long-term results for investors is not compromised."
To be sure, the fund has performed extremely well under manager Don Kilbride of Wellington Management. While he invests in mega-cap blue chips, he maintains a fairly compact portfolio of 45-55 names. It's encouraging that Vanguard closed the fund rather than forcing Kilbride into a more diffuse portfolio or adding another subadvisor to the mix.
Christine Benz does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.