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Is Vanguard International Dividend Appreciation ETF (VIGI) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Vanguard International Dividend Appreciation ETF (VIGI - Free Report) debuted on 03/03/2016, and offers broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $3.93 billion, this makes it one of the largest ETFs in the World ETFs. VIGI is managed by Vanguard. VIGI seeks to match the performance of the NASDAQ International Dividend Achievers Select Index before fees and expenses.
The S&P Global Ex-U.S. Dividend Growers Index focuses on high quality companies located in developed and emerging markets, excluding the United States, that have both the ability and the commitment to grow their dividends over time.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for VIGI are 0.15%, which makes it one of the least expensive products in the space.
VIGI's 12-month trailing dividend yield is 2.06%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
When you look at individual holdings, Novo Nordisk A/s (NOVO) accounts for about 4.63% of the fund's total assets, followed by Novartis Ag and Nestle Sa (NESN).
Its top 10 holdings account for approximately 35.59% of VIGI's total assets under management.
Performance and Risk
So far this year, VIGI has lost about -16.79%, and is down about -16.18% in the last one year (as of 12/27/2022). During this past 52-week period, the fund has traded between $61.33 and $85.61.
VIGI has a beta of 0.77 and standard deviation of 21.58% for the trailing three-year period. With about 317 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard International Dividend Appreciation ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Total International Stock ETF (VXUS - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $49.28 billion in assets, Vanguard FTSE Developed Markets ETF has $99.57 billion. VXUS has an expense ratio of 0.07% and VEA charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Vanguard International Dividend Appreciation ETF (VIGI) a Strong ETF Right Now?
A smart beta exchange traded fund, the Vanguard International Dividend Appreciation ETF (VIGI - Free Report) debuted on 03/03/2016, and offers broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $3.93 billion, this makes it one of the largest ETFs in the World ETFs. VIGI is managed by Vanguard. VIGI seeks to match the performance of the NASDAQ International Dividend Achievers Select Index before fees and expenses.
The S&P Global Ex-U.S. Dividend Growers Index focuses on high quality companies located in developed and emerging markets, excluding the United States, that have both the ability and the commitment to grow their dividends over time.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for VIGI are 0.15%, which makes it one of the least expensive products in the space.
VIGI's 12-month trailing dividend yield is 2.06%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
When you look at individual holdings, Novo Nordisk A/s (NOVO) accounts for about 4.63% of the fund's total assets, followed by Novartis Ag and Nestle Sa (NESN).
Its top 10 holdings account for approximately 35.59% of VIGI's total assets under management.
Performance and Risk
So far this year, VIGI has lost about -16.79%, and is down about -16.18% in the last one year (as of 12/27/2022). During this past 52-week period, the fund has traded between $61.33 and $85.61.
VIGI has a beta of 0.77 and standard deviation of 21.58% for the trailing three-year period. With about 317 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard International Dividend Appreciation ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Total International Stock ETF (VXUS - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $49.28 billion in assets, Vanguard FTSE Developed Markets ETF has $99.57 billion. VXUS has an expense ratio of 0.07% and VEA charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.