Dividend investors looking to add some international income to their portfolios have plenty of exchange traded funds to consider. Those also looking for a low-fee idea can consider the Vanguard International Dividend Appreciation ETF (NasdaqGM: VIGI).
VIGI, which debuted in March 2016, is the international answer to the popular Vanguard Dividend Appreciation ETF (NYSEArca: VIG), the largest U.S. dividend ETF.
VIGI, one of just two new ETFs launched by Vanguard last year, “emphasizes stocks exhibiting dividend growth and seeks to track the Nasdaq International Dividend Achievers Select Index, which comprises more than 200 all-cap developed and emerging markets stocks with a track record of increasing annual dividend payments,” according to Vanguard.
Although VIGI is among the newest Vanguard ETFs, the fund has quickly developed a following among dividend investors.
“Not surprisingly, VIGI is off to a fast start. This Vanguard dividend ETF had nearly $748 million in assets under management at the end of the third quarter. Seasoned income investors know that international dividend payers often yield more than the comparable U.S. stocks, a point that underscores VIGI’s utility in income-generating portfolios,” reports InvestorPlace.
VIGI holds nearly 250 stocks and its top 10 holdings represent almost a third of the ETF’s total weight. The ETF’s components have a median market value of $52.7 billion with earnings multiples indicating VIGI trades at a discount to the S&P 500.