- Vanguard Group unveils two international ETF options
- VIGI to follow an income investing strategy, focusing on companies with high dividend yields
- VYMI will emphasize stocks exhibiting dividend growth
The Vanguard Group is expanding its line of popular dividend exchange traded funds to include two international options that mirror U.S.-focused offerings.
Vanguard has launched the Vanguard International Dividend Appreciation ETF (NasdaqGM: VIGI) and Vanguard International High Dividend Yield ETF (NasdaqGM: VYMI), according to a press release.
VIGI will follow the Nasdaq International Dividend Achievers Select Index, which is comprised of over 200 all-cap developed and emerging market company stocks with a history of growing dividends.
VYMI will reflect the performance of the FTSE All-World ex US High Dividend Yield Index, which is composed of over 800 of the highest yielding large- and mid-cap developed and emerging market securities.
“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 said in a previous statement. [Vanguard to Introduce International Dividend ETFs]
Both of the new Vanguard ETFs are share classes of the company’s mutual funds, which were also launched Wednesday. Through the Vanguard ETFs, investors may enjoy low costs and no minimum investments. For instance, VIGI has a 0.25% expense ratio, the same fees associated with Admiral shares of the mutual fund, which also require a $10,000 minimum investment. VYMI comes with a 0.30% expense ratio, the same costs for the respective Admiral shares.
ETF investors may also be familiar with the two new Vanguard additions as the Vanguard Dividend Appreciation ETF (NYSEArca: VIG) and Vanguard High Dividend Yield ETF (NYSEArca: VYM) have been popular dividend plays among income-minded investors.
VIG, which has $19.5 billion in assets under management, tracks U.S. stocks that have increased dividends on a regular basis for at least 10 consecutive years and shows a 2.37% 12-month yield.
VYM, which has $12.3 billion in assets, targets high-yield U.S. companies and has a 3.31% 12-month yield.
Max Chen contributed to this article.