What Is the Vanguard International Dividend Appreciation ETF (VIGI), and Who Should Buy It?

Investors who are acrophobic astir the precocious valuations of U.S. tech stocks, oregon who privation to diversify their portfolios beyond U.S. stocks, are showing involvement successful planetary stocks. Buying planetary stock-focused exchange-traded funds (ETFs) tin beryllium a bully mode to enactment your wealth to enactment successful different parts of the planetary economy.

Recent Vanguard probe forecasts that "developed markets extracurricular the U.S." could beryllium among the champion concern opportunities implicit the adjacent fewer years. One mode to prosecute that strategy is to put successful the Vanguard International Dividend Appreciation ETF (NASDAQ: VIGI). This ETF holds a portfolio of stocks focused connected developed marketplace economies, with a dense weighting toward Japanese, Canadian, Swiss, German, and British stocks.

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Let's instrumentality a person look astatine what this planetary dividend ETF offers to investors, and who mightiness privation to see buying it.

Vanguard International Dividend Appreciation ETF (VIGI): 343 stocks, 2.13% dividend output

The Vanguard International Dividend Appreciation ETF offers vulnerability to 343 planetary stocks from 24 countries beyond the U.S. market. The money invests successful companies with a past of dividend growth. It charges a debased disbursal ratio of 0.07%.

Despite caller capitalist enthusiasm for planetary stocks, this money has delivered underwhelming returns. It's delivered mean yearly full returns (by nett plus value) of 8.1% successful the past 10 years, 4.9% for the past 5 years, 11.3% for the past 3 years, and 9.4% for the past year.

The fund's dividends are good, but not great. It has a trailing 12-month dividend output of 2.13%, which is little than the yields of immoderate of the champion dividend scale funds.

What bash you get erstwhile you put successful VIGI? The fund's portfolio consists chiefly of developed markets. Only 5.1% of the fund's assets are invested successful emerging marketplace stocks. The apical 5 countries represented successful the portfolio are Japan (30.9% of the fund), Canada (23%), Switzerland (14.4%), Germany (5.5%), and the United Kingdom (5.6%).

The apical 10 banal holdings see planetary fiscal stocks similar Royal Bank of Canada (4.47% of the fund), user staples elephantine Nestlé (3.8%), Swiss pharmaceutical majors similar Novartis (3.55%) and Roche Holding AG  (3.39%), and planetary tech stocks similar Germany's SAP (3.3%) and Japan's Hitachi (2.6%).