Investors should note VIGI allocates nearly 21% of its weight to emerging markets dividend stocks, a potentially potent, but also volatile group of dividend payers. Emerging markets dividend growth has outpaced developed world payout growth over the past decade and market observers expect that trend to continue, but some advisors and investors gloss over emerging markets dividend exchange traded funds. However, that growth came under pressure last year as commodities prices slumped.
Low interest rates in the U.S. have sent investors flocking to dividend stocks and exchange traded funds in recent years. With central banks throughout the developed world paring rates and engaging in monetary easing, government bond yields are falling, giving investors good reason to consider international dividend ETFs.
VIGI allocates nearly 45% of its weight to European dividend stocks and Canada chimes in at over 14%. The median market value of the ETF’s holdings is over $50 billion, according to issuer data.
As is the case with so many Vanguard ETFs, VIGI is attractively priced at 0.25% per year, making it cheaper than 77% of competing funds.
For more information on dividend stocks, visit our dividend ETFs category.