What kind of income comes out of VGS?
The post What kind of dividend does the Vanguard International Shares ETF (ASX:VGS) pay? appeared first on The Motley Fool Australia. –
As we discussed earlier this week, the Vanguard MSCI Index International Shares ETF (ASX: VGS) is one of the most popular exchange-traded funds (ETFs) on the share market today. According to data from CommSec, VGS is currently the sixth-most popular ETF on the ASX boards. As well as the second-most popular ETF that invests outside the ASX.
As it stands today, this Vanguard International Shares ETF has more than $4.3 billion in funds under management (FUM).
In addition to being one of the most popular ETFs on the ASX boards, VGS is also one of the most diversified. If you think the ASX’s most popular fund – the Vanguard Australian Shares Index ETF (ASX: VAS) – is diversified with its 300 or so holdings, this will knock your socks off.
As it stands today, VGS is currently invested in more than 1,500 different underlying companies, spread across more than 20 countries. Its largest weighting is by far to the United States, which commands almost 70% of this ETF’s underlying portfolio. But other advanced economies also have a meaningful presence. These include Japan, the United Kingdom, Canada, Singapore, New Zealand and a range of European countries.
Earlier this week, we covered VGS’s performance, which has been a lot better than the ASX’s over the past decade or so. Vanguard’s ASX 300 VAS ETF has averaged a return of 10.99% over annum over the past five years. In contrast, VGS has managed 15.96% per annum over the same period.
But how does VGS fare when it comes to paying out income, something that many ASX investors are perpetually interested in?
What kind of dividend income does VGS provide?
Like most Vanguard ETFs, VGS pays out a quarterly dividend distribution ito its investors. It’s last four distributions were as follows:
40.34 cents per unit for the quarter ending 31 December 2020
31.56 cents per unit for the quarter ending 31 March 2021
81.3 cents per unit for the quarter ending 30 June 2021
34.26 cents per unit for the quarter ending 30 September 2021
That adds up to a trailing annual distribution of $1.87 per unit.
On today’s present VGS unit price of $105.28, that gives VGS a trailing yield of 1.78%.
Although VGS doesn’t hold the kinds of income-spewing ASX shares at its top as VAS does, it still holds a number of formidable dividend payers in its largest holdings. These include Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Johnson & Johnson (NYSE: JNJ) and Exxon Mobil Corp (NYSE: XOM).
The Vanguard MSCI Index International Shares ETF charges an annual management fee of 0.18%.
The post What kind of dividend does the Vanguard International Shares ETF (ASX:VGS) pay? appeared first on The Motley Fool Australia.
Should you invest $1,000 in VGS right now?
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Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Johnson & Johnson. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Microsoft and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Apple and Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.