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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?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option 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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Vanguard. VIGI has been able to amass assets over $9.16 billion, making it one of the larger ETFs in the Foreign Large Blend ETF. This particular fund 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 this ETF are 0.07%, making it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 2.13%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Mitsubishi Ufj Financial Group Incaccounts for about 4.93% of the fund's total assets, followed by Royal Bank Of Canada (RY) and Sap Se (SAP).
Performance and Risk
The ETF return is roughly 9.05% so far this year and is up about 12.41% in the last one year (as of 11/02/2026). In the past 52-week period, it has traded between $85.45 and $99.82
The ETF has a beta of 0.70 and standard deviation of 12.93% for the trailing three-year period. With about 364 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 $157.73 billion in assets, Vanguard FTSE Developed Markets Index Fund ETF Shares has $226.7 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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Is Vanguard International Dividend Appreciation Index Fund ETF Shares (VIGI) a Strong ETF Right Now?
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?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option 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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Vanguard. VIGI has been able to amass assets over $9.16 billion, making it one of the larger ETFs in the Foreign Large Blend ETF. This particular fund 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 this ETF are 0.07%, making it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 2.13%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Mitsubishi Ufj Financial Group Incaccounts for about 4.93% of the fund's total assets, followed by Royal Bank Of Canada (RY) and Sap Se (SAP).
Performance and Risk
The ETF return is roughly 9.05% so far this year and is up about 12.41% in the last one year (as of 11/02/2026). In the past 52-week period, it has traded between $85.45 and $99.82
The ETF has a beta of 0.70 and standard deviation of 12.93% for the trailing three-year period. With about 364 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 $157.73 billion in assets, Vanguard FTSE Developed Markets Index Fund ETF Shares has $226.7 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.