Vanguard, the second-largest U.S. issuer of exchange traded funds, will add two international dividend funds to its lineup.
“Vanguard has filed a registration statement with the Securities and Exchange Commission for its first dividend-oriented international index funds,” said Pennsylvania-based Vanguard in a statement out Tuesday.
The firm is planning to introduce the Vanguard International High Dividend Yield Index Fund and the Vanguard International Dividend Appreciation Index Fund, according to the statement.
“The Vanguard International High Dividend Yield Index Fund will follow an income investing strategy, focusing on companies with high dividend yields, while Vanguard International Dividend Appreciation Index Fund will emphasize stocks exhibiting dividend growth,” said Vanguard in the statement.
That ETF, which also be made available as a mutual fund, will have an annual expense ratio of 0.3%.
“The Vanguard International Dividend Appreciation Index Fund will seek to track the performance of the Nasdaq International Dividend Achievers Select Index. This new benchmark comprises more than 200 all-cap developed and emerging markets stocks with a long track record of increasing annual dividend payments,” according to Vanguard.
That ETF will charge 0.25% per year.
Vanguard is already one of the largest issuers of dividend ETFs thanks to combined $38 billion in assets under management for the Vanguard Dividend Appreciation ETF (NYSEArca: VIG) and the Vanguard High Dividend Yield ETF (NYSEArca: VYM).
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.