Vanguard International Dividend Appreciation Index Fund ETF Shares (VIGI)

ETF Vanguard International Dividend Appreciation Index Fund ETF Shares (VIGI)

Profile: VIGI is an ETF that tracks the performance of the FTSE International High Dividend Low Volatility Index, focusing on international companies with high dividend yields and low volatility.

Objective: VIGI aims to provide investors with long-term capital appreciation and income in the form of dividends.

Issuer: The issuer of VIGI is Vanguard, a leading global investment management company with a reputation for low-cost, transparent, and well-managed funds. Vanguard has a long history of providing high-quality investments and is known for its commitment to index-tracking strategies.

Market Share: VIGI is one of the largest international dividend-focused ETFs, with a significant market share in the global dividend ETF market.

Total Net Assets: As of November 2023, VIGI has over $20 billion in total net assets under management.

Moat: VIGI's main competitive advantages include:

• Low cost: Vanguard is known for its low-cost ETFs, and VIGI has an expense ratio of just 0.10%.
• Diversification: The ETF invests in a broad range of international companies, providing diversification across sectors and regions.
• Focus on high-quality dividend-paying companies: VIGI focuses on companies with strong financial performance and a track record of consistent dividend payouts.

Financial Performance: VIGI has historically outperformed the FTSE Developed World ex USA Index, its benchmark index, over various timeframes.

Growth Trajectory: The international dividend ETF market is expected to grow steadily in the coming years, driven by rising investor demand for income-generating assets and diversification opportunities.

Liquidity: VIGI is a highly liquid ETF with an average daily trading volume of over 5 million shares.

Market Dynamics: Factors such as global economic growth, interest rates, and dividend policies of international companies can affect VIGI's market environment.

Competitors: Key competitors in the international dividend ETF space include iShares International Select Dividend ETF (IDV) and SPDR S&P International Dividend ETF (DWX).

Expense Ratio: The expense ratio for VIGI is 0.10%.

Investment Approach and Strategy: VIGI tracks the FTSE International High Dividend Low Volatility Index, investing in companies with high dividend yields and low volatility. The ETF typically holds over 200 stocks across various sectors and countries.

Key Points:

• Low cost
• Diversification
• Focus on high-quality dividend-paying companies
• Strong historical performance
• Highly liquid

Risks:

• Volatility: VIGI is subject to market volatility, which can lead to fluctuations in the share price.
• Market Risk: The ETF's performance is dependent on the overall performance of international stock markets and the companies it invests in.
• Dividend cuts: Companies may reduce or suspend dividend payments, impacting the ETF's income.

Who Should Consider Investing: VIGI is suitable for investors seeking long-term capital appreciation and income in the form of dividends. Investors comfortable with moderate volatility and seeking international diversification may find VIGI an attractive investment.

Fundamental Rating Based on AI: 8/10

Evaluation: VIGI receives a high rating based on its strong financial performance, low cost, diversification, and focus on high-quality dividend-paying companies.

Disclaimer: This analysis is based on information available as of November 2023 and should not be considered financial advice. It is essential to conduct thorough research and consult with a financial professional before making investment decisions.

Sources:

• https://investor.vanguard.com/etf/profile/VIH
• https://www.vanguard.com/pdf/FTSE_HDLV_Index_FactSheet.pdf
• https://markets.businessinsider.com/etfs/vie/vigi-etf