Vanguard’s International Dividend Appreciation ETF holds 343 stocks with a 2.13% yield and 0.07% expense ratio amid global diversification demand.
Investors are turning to the Vanguard International Dividend Appreciation ETF (VIGI) to diversify beyond U.S. equities, particularly tech stocks. The fund targets developed markets outside the U.S., with top holdings in Japan, Canada, Switzerland, Germany, and the U.K.
VIGI holds 343 stocks across 24 countries, focusing on companies with a history of dividend growth. It offers a 2.13% dividend yield and charges a 0.07% expense ratio. Despite its low fees, the ETF has delivered mixed returns: 8.1% over 10 years, 4.9% over five years, and 11.3% over three years.
Vanguard research suggests developed markets outside the U.S. may outperform in coming years, driving interest in funds like VIGI. However, its performance has lagged some expectations, raising questions about its long-term appeal.