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

Designed to provide broad exposure to the Foreign Large Blend ETF category of the market, the Vanguard International Dividend Appreciation ETF (VIGI) is a smart beta exchange traded fund launched on 03/03/2016.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.A good option for investors who believe in market efficiency, market cap weighted indexes offer 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.Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.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 & IndexThe fund is managed by Vanguard, and has been able to amass over $8.4 billion, which makes it one of the larger ETFs in the Foreign Large Blend ETF. Before fees and expenses, VIGI 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 ExpensesExpense 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 0.10%, making it one of the least expensive products in the space.VIGI's 12-month trailing dividend yield is 1.84%.Sector Exposure and Top HoldingsETFs 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.Taking into account individual holdings, Sap Se (SAP) accounts for about 4.02% of the fund's total assets, followed by Novartis Ag (NOVN) and Royal Bank Of Canada (RY).Performance and RiskThe ETF has gained about 12.51% so far this year and is up about 8.08% in the last one year (as of 08/14/2025). In the past 52-week period, it has traded between $75.29 and $91.16The fund has a beta of 0.73 and standard deviation of 14.09% for the trailing three-year period. With about 341 holdings, it effectively diversifies company-specific risk .AlternativesVanguard 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 $101.79 billion in assets, Vanguard FTSE Developed Markets ETF has $170.46 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 ETFBottom LineTo 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vanguard International Dividend Appreciation ETF (VIGI): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks