VMVFX

About VMVFX

Vanguard Global Minimum Volatility Fund Investor Shares is an actively managed mutual fund designed to offer long-term capital appreciation while maintaining lower volatility than the overall global equity market. The fund achieves this by investing primarily in a diversified mix of U.S. and international stocks that exhibit historically lower price fluctuations. Its portfolio spans multiple countries, sectors, and industry groups, allowing for broad exposure while emphasizing risk reduction. To further stabilize returns, the fund typically hedges most of its currency exposure back to the U.S. dollar, decreasing the impact of exchange rate movements. The strategy employs a systematic optimizer that considers not only individual stock volatility but also the interrelationship among holdings, building a defensively-oriented portfolio that avoids over-concentration in any sector or region. Portfolio constraints help ensure no single country or sector dominates, aligning closely with its benchmark, the FTSE Global All Cap Hedged Index. Managed by Vanguard and launched in 2013, the fund is supported by a team using both quantitative methods and active managerial discretion for rebalancing. With a low expense ratio relative to its peers and an emphasis on risk-adjusted returns, this fund plays a significant role for investors seeking global equity exposure with a focus on lower volatility.