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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 Foreign Large Blend ETF 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 long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.

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.

If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.

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.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

The fund is managed by Vanguard, and has been able to amass over $9.01 billion, which makes it one of the larger ETFs in the Foreign Large Blend ETF. VIGI, before fees and expenses, seeks to match the performance of the NASDAQ International Dividend Achievers Select Index.

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

When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.

Operating expenses on an annual basis are 0.10% for this ETF, which makes it one of the least expensive products in the space.

The fund has a 12-month trailing dividend yield of 1.85%.

Sector Exposure and Top Holdings

Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.

Taking into account individual holdings, Royal Bank Of Canada (RY) accounts for about 4.19% of the fund's total assets, followed by Novartis Ag (NOVN) and Mitsubishi Ufj Financial Group Inc.

Performance and Risk

Year-to-date, the Vanguard International Dividend Appreciation ETF return is roughly 16% so far, and is up about 12.49% over the last 12 months (as of 12/17/2025). VIGI has traded between $75.29 $92.03 in this past 52-week period.

The fund has a beta of 0.72 and standard deviation of 12.64% for the trailing three-year period. With about 361 holdings, it effectively diversifies company-specific risk .

Alternatives

Vanguard International Dividend Appreciation ETF is a reasonable option for investors seeking to outperform the Foreign Large Blend ETF segment of the market. However, there are other ETFs in the space which investors could consider.

Vanguard Total International Stock ETF (VXUS) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $115.03 billion in assets, Vanguard FTSE Developed Markets ETF has $189.66 billion. VXUS has an expense ratio of 0.05% and VEA changes 0.03%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Blend ETF

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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