Vanguard's International Dividend Appreciation ETF (VIGI) invests only in companies outside the U.S. that have increased dividends for at least seven years, excluding the highest-yielding stocks to avoid those likely to cut dividends. This strategy focuses on financial discipline and consistent growth, resulting in about 400 quality international companies mainly from developed markets like Japan, Canada, and Switzerland. While VIGI offers a modest yield near 2% and low fees, it tends to underperform broad international ETFs during growth-driven market rallies due to its conservative screening. Investors should consider VIGI as a quality-focused complement to broader international holdings, understanding it may lag in risk-on environments but provide downside protection.
