A Growth-Oriented Foreign Dividend Fund
Vanguard International Dividend Appreciation employs strict selection criteria to focus on high-quality stocks.
ETF Specialist
Mentioned: L'Oreal SA (LOR)
, Nestle SA (NSRGY)
, Unilever PLC (UL)
, iShares Edge MSCI Min Vol EAFE ETF (EFAV)
, iShares Edge MSCI Min Vol Emerg Mkts ETF (EEMV)
, WisdomTree Intl Hdgd Qual Div Gr ETF (IHDG)
, iShares Edge MSCI Intl Quality Fctr ETF (IQLT)
, Vanguard Intl Div Apprec ETF (VIGI)
, WisdomTree International Qual Div Gr ETF (IQDG)
, Vanguard Dividend Appreciation ETF (VIG)
High-quality companies often have a defensive bent, making them a welcome addition to a diversified portfolio. They tend to exhibit lower volatility than the market and hold up better during drawdowns. Consistent dividend growth is a good proxy for quality because it demonstrates that the business is healthy and stable, and is run by a shareholder-friendly management team. Vanguard International Dividend Appreciation ETF (VIGI) seeks out these stocks outside the United States.
VIGI is poised for success over the long term. This low-cost fund prioritizes dividend growth over yield, which emphasizes highly profitable firms that should hold up better than most during market downturns and offer attractive long-term returns. However, its short track record limits its Morningstar Analyst Rating to Bronze.
Daniel Sotiroff does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.