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International Dividend Appreciation ETF (VIGI) Hits New 52-Week High

Sanghamitra Saha

For investors seeking momentum, Vanguard International Dividend Appreciation ETF VIGI is probably on radar now. The fund just hit a 52-week high of $60.90. Shares of VIGI are up roughly 18.3% from their 52-week low price of $51.50/share. 

But could more gains be ahead for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea on where it might be headed: 

VIGI in Focus

The fund looks to track the performance of the NASDAQ International Dividend Achievers Select Index. The fund is heavy on Europe (45.5%) followed by emerging markets (20.9%) and Pacific (18.5%). The fund charges 25 bps in total fees (see all World ETFs here). 

Why the Move?

No investing area seems to be as appealing as dividend irrespective of market conditions. Investors get to enjoy a steady stream of current income through this technique. Among dividend-focused securities, stocks that have a history of hiking dividends regularly appear to offer considerable quality exposure.  

As global growth is expected to pick up this year, central banks are likely not to turn more accommodative. High dividend stocks and ETFs normally underperform in a rising rate scenario. On the other hand, dividend growth ETFs like VIGI have high chances of outperformance in such an environment. Plus, these strong blue-chip companies normally act as a hedge against sudden economic uncertainty.

More Gains Ahead? 

The fund has a positive weighted alpha of 16.02. A positive weighted alpha hints at more gains. As a result, there is definitely still some promise for investors who want to ride on this surging ETF.

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VANGD-INT DV AP (VIGI): ETF Research Reports
 
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