Press release: Vanguard Announces Plans to Launch Active China Equity Fund
Vanguard today filed an initial registration statement with the U.S. Securities and Exchange Commission to introduce Vanguard China Select Stock Fund. The fund will invest in both onshore and offshore Chinese equities and is intended for clients seeking actively managed, high-alpha-target equity exposure to complement a broadly diversified portfolio. Vanguard expects to launch the fund in the first quarter of 2022.
Vanguard believes that exposure to China is an important part of both the equity and fixed income allocations of a globally diversified portfolio. China is a significant and growing portion of the global equity market, representing the second largest nation by GDP output and the third largest country by market capitalization. With the China Select Stock Fund, Vanguard seeks to provide risk-tolerant investors with a targeted approach to exposure in the region. The fund will seek to outperform the MSCI China All Shares Index and have estimated expense ratios of 0.83% for Investor Shares and 0.73% for Admiral Shares, compared with an average expense ratio of 1.14% for competing funds.
The fund will be co-managed by long-tenured Vanguard fund advisors Wellington Management Company LLP and Baillie Gifford Overseas Ltd. Both firms have deep portfolio management experience and expertise in China and a track record of outperformance in Chinese equity markets. Vanguard’s confidence in these firms is underscored by existing and successful partnerships, as well as their track records of delivering value to Vanguard shareholders.