Vanguard International Growth VWILX, what's in it?

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livesoft
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Vanguard International Growth VWILX, what's in it?

Post by livesoft »

Since I learned from this thread: viewtopic.php?t=322657&p=5427993 that Vanguard International Growth was up 23+% YTD which is great for an international fund, I wanted to figure out what this fund was holding since it sure appeared to be an anomaly among other international funds with Total International Stock VTIAX at -3%.

Here are the top 10 holdings of VWILX:

Image

I'm thinking "What?? Tesla? Amazon? But it is cool that there is Tencent and Alibaba in there."

Are Amazon and Tesla actually non-US stocks? Uh, no. VWILX is 19% China and 14% US: https://investor.vanguard.com/mutual-fu ... olio/vwilx
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azanon
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Re: Vanguard International Growth VWILX, what's in it?

Post by azanon »

Exactly. Morningstar confirms that it has 12.34% US stock. It's cheating.
Kookaburra
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Re: Vanguard International Growth VWILX, what's in it?

Post by Kookaburra »

With a healthy dose of US, it’s the perfect fund to settle the “How Much International?” debate.
Norwegianwood
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Re: Vanguard International Growth VWILX, what's in it?

Post by Norwegianwood »

Exactly. I recently put a small percentage of my portfolio in this fund. I don’t have any other International exposure. :beer
“If you don’t know where you’re going you might wind up someplace else” - Yogi Berra
columbia
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Re: Vanguard International Growth VWILX, what's in it?

Post by columbia »

It's an active fund, so presumably the prospectus spells out the management latitude for such things. Shrug.
Last edited by columbia on Thu Aug 13, 2020 10:42 am, edited 1 time in total.
sergio
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Re: Vanguard International Growth VWILX, what's in it?

Post by sergio »

azanon wrote: Thu Aug 13, 2020 10:03 am Exactly. Morningstar confirms that it has 12.34% US stock. It's cheating.
I don't think that 12% US would even come close to explaining 27% difference in the performance of the int'l index vs VWILX. And it's probably "allowed" under the prospectus, just like how a lot of active US funds usually allow for a some small amount of int'l stocks.
kabob
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Re: Vanguard International Growth VWILX, what's in it?

Post by kabob »

Cheating!, Actively Managed! Oops, That's not in the BogleHeadMenu...
But I have/keep some... Hope that doesn't banish me from BogleVille.

VWUAX , another actively managed fund (Vanguard U.S. Growth Fund Close: $144.01 -> 29.26%YTD)
is doin pretty good also (have somea that too, actually a good bit of it. It's out preformin Vug/Vigax.

Sometimes in rapidly changing times a little Active Management never hurts...
But they also require one's active attention!- when markets return to smooth and stable times it's probably best to reallocate back to passive index funds.
Hey, when money's Cheap, one must make sure to get their fair share....
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Kenkat
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Re: Vanguard International Growth VWILX, what's in it?

Post by Kenkat »

No both Tesla and Amazon.com sell some products overseas so they count as international stocks. I thought I read that somewhere in talking about international funds :happy
drzzzzz
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Re: Vanguard International Growth VWILX, what's in it?

Post by drzzzzz »

It would be interesting to know for how long TSLA and AMZN have been included in this mutual fund. I have had the fund for a few years based upon Dan Weiner's recommendation to use this instead of VTIAX (the more boglehead appropriate international fund) and yes I know it is actively managed and has a higher ER.
azanon
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Re: Vanguard International Growth VWILX, what's in it?

Post by azanon »

sergio wrote: Thu Aug 13, 2020 10:41 am
azanon wrote: Thu Aug 13, 2020 10:03 am Exactly. Morningstar confirms that it has 12.34% US stock. It's cheating.
I don't think that 12% US would even come close to explaining 27% difference in the performance of the int'l index vs VWILX. And it's probably "allowed" under the prospectus, just like how a lot of active US funds usually allow for a some small amount of int'l stocks.
I never said it did explain all of the performance. The other part of the performance (the lion's share) would be explained by it being a growth fund, which has been a strategy (growth valuation tilt) that's globally been in favor for years now.

Yes, you are correct - technically almost anything under the sun, or very drastic moves are technically allowed in most actively managed funds, almost certainly this would be allowed, and I see you confirmed that it was (I would have assumed it without looking). Fortunately, most of the time, active funds tend to not use most of the available drastic moves that are technically allowed.

I'm happy to clarify to those not giving me the benefit of the doubt that by me saying it's cheating, I was simply making reference that it's not a purely international stock only fund, and not even close given the double-digit US stock position. So it's not really comparable to, say, a Total International Stock Index fund.
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