Vanguard International Dividend Appreciation ETF [VIGI]

VIGI focuses on sustainable growth, it holds a cap-weighted basket of international firms with a history of steadily increasing dividends. It's the same methodology used by the fund's US-focused sibling, VIG. (VIGI requires seven years of dividend growth, VIG sets the bar at ten years.) The index selects stocks from the S&P Global-Ex U.S. BMI, firms classified as REITs as per GICS are excluded. After the liquidity and dividend growth screens, remaining companies are ranked by indicated annual dividend yield. The top 25% (15% for existing constituents) companies are removed. Then, companies are weighted by market cap, subject to a single constituent weight cap of 4%. Prior to Sep. 20, 2021, the fund tracked the NASDAQ International Dividend Achievers Select Index following the same strategy.