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Is Vanguard International Dividend Appreciation ETF (VIGI) a Strong ETF Right Now?
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Designed to provide broad exposure to the World ETFs category of the market, the Vanguard International Dividend Appreciation ETF (VIGI - Free Report) is a smart beta exchange traded fund launched on 03/03/2016.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Vanguard. It has amassed assets over $6.65 billion, making it one of the largest ETFs in the World ETFs. 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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.15% for VIGI, making it one of the least expensive products in the space.
VIGI's 12-month trailing dividend yield is 2.02%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Novo Nordisk A/s (NOVOB) accounts for about 5.96% of the fund's total assets, followed by Sap Se (SAP - Free Report) and Novartis Ag (NOVN).
Performance and Risk
The ETF has added about 2.75% and is up about 11.33% so far this year and in the past one year (as of 05/27/2024), respectively. VIGI has traded between $68.61 and $82.79 during this last 52-week period.
VIGI has a beta of 0.78 and standard deviation of 14.47% for the trailing three-year period. With about 314 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 $71.61 billion in assets, Vanguard FTSE Developed Markets ETF has $133.44 billion. VXUS has an expense ratio of 0.08% 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?
Designed to provide broad exposure to the World ETFs category of the market, the Vanguard International Dividend Appreciation ETF (VIGI - Free Report) is a smart beta exchange traded fund launched on 03/03/2016.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Vanguard. It has amassed assets over $6.65 billion, making it one of the largest ETFs in the World ETFs. 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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.15% for VIGI, making it one of the least expensive products in the space.
VIGI's 12-month trailing dividend yield is 2.02%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Novo Nordisk A/s (NOVOB) accounts for about 5.96% of the fund's total assets, followed by Sap Se (SAP - Free Report) and Novartis Ag (NOVN).
Performance and Risk
The ETF has added about 2.75% and is up about 11.33% so far this year and in the past one year (as of 05/27/2024), respectively. VIGI has traded between $68.61 and $82.79 during this last 52-week period.
VIGI has a beta of 0.78 and standard deviation of 14.47% for the trailing three-year period. With about 314 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 $71.61 billion in assets, Vanguard FTSE Developed Markets ETF has $133.44 billion. VXUS has an expense ratio of 0.08% 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.