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Is Vanguard International Dividend Appreciation Index Fund ETF Shares (VIGI) a Strong ETF Right Now?

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The Vanguard International Dividend Appreciation Index Fund ETF Shares (VIGI - Free Report) made its debut on 03/03/2016, and is a smart beta exchange traded fund that provides broad exposure to the Foreign Large Blend ETF category of the market.

What Are Smart Beta ETFs?

Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.

Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.

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.

By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.

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

Managed by Vanguard, VIGI has amassed assets over $8.71 billion, making it one of the larger ETFs in the Foreign Large Blend ETF. 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.

Annual operating expenses for VIGI are 0.07%, which makes it one of the least expensive products in the space.

It's 12-month trailing dividend yield comes in at 2.19%.

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, Roche Holding Ag (ROG.SW) accounts for about 4.74% of the fund's total assets, followed by Novartis Ag (NOVN.SW) and Royal Bank Of Canada (RY.CN).

Performance and Risk

The ETF has added roughly 0.73% so far this year and is up about 13.84% in the last one year (as of 04/22/2026). In the past 52-week period, it has traded between $84.00 and $96.24

The fund has a beta of 0.73 and standard deviation of 12.98% for the trailing three-year period. With about 358 holdings, it effectively diversifies company-specific risk .

Alternatives

Vanguard International Dividend Appreciation Index Fund ETF Shares 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 Index Fund ETF Shares (VXUS) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets Index Fund ETF Shares (VEA) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock Index Fund ETF Shares has $141.91 billion in assets, Vanguard FTSE Developed Markets Index Fund ETF Shares has $217.44 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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