Forget VIGI: Fidelity’s International Dividend Fund Returned 75.75% Over Five Years Against VIGI’s 27.91%
Vanguard's international dividend growth ETF has a loyal following, but a closer look at the five-year numbers reveals a rival fund quietly stacking up returns that are hard to explain away as a lucky streak.
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The Vanguard International Dividend Appreciation ETF (NASDAQ:VIGI) draws investors who like Vanguard’s U.S. dividend growth approach and want the same idea overseas. VIGI holds foreign companies with records of raising their payouts, which appeals to long-term investors who prefer steady businesses to the highest yields. Over five years, though, VIGI returned 27.91% with distributions reinvested, while the Fidelity International High Dividend ETF (NYSEARCA:FIDI) returned 75.75%. That gap comes to 47.84 points. Both windows start on October 22, 2021. VIGI grew a $100,000 investment to $127,910, while the same amount in FIDI grew to $175,750.
FIDI Leads Over One Year and Year to Date
Fidelity’s lead goes well beyond the five-year figure. Over one year, FIDI returned 22.8% against VIGI’s 10.88%, a gap of 11.92 points. Year to date, FIDI is up 15.83% versus 9.44% for VIGI, an edge of 6.39 points. A VIGI holder can’t ignore the gap as one lucky stretch, because FIDI leads over the long, medium, and recent windows alike.
The past month told a different story. VIGI returned 3.19% to FIDI’s 2.44%. One month of modest gains doesn’t undo the broader trend.
Switching Means Choosing a Different Dividend Style
These funds approach dividends from opposite directions. VIGI seeks to track the S&P Global Ex-U.S. Dividend Growers Index, which Vanguard describes as measuring non-U.S. companies that have a history of increasing dividends. S&P Dow Jones Indices says that index excludes the top 25% highest-yielding eligible stocks. In plain terms, VIGI rewards a track record of increases and, by design, screens out the biggest current payers.
According to its September 30, 2026 fact sheet, FIDI tracks the Fidelity International High Dividend Index, which covers large- and mid-capitalization developed international high dividend-paying companies that are expected to continue to pay and grow their dividends. Current payout size comes first. Picking between the two means picking a dividend style as well as a fund.
FIDI Trails Two High-Dividend Rivals
FIDI beat VIGI, yet two high-dividend rivals finished ahead of it. Over the same five-year window, the Vanguard International High Dividend Yield ETF (NASDAQ:VYMI) returned 85.63%, finishing 9.88 points ahead of FIDI. The iShares International Select Dividend ETF (CBOE:IDV) returned 82.99%, ending 7.24 points ahead.
If you’re set on international high-dividend stocks, compare VYMI and IDV against FIDI before you commit.
Currency Moves Ride Along With Every Foreign Holding
When you own an international fund, two things drive your return. One is how the underlying companies perform. The other is the exchange rate between their home currencies and the dollar. If those currencies strengthen against the dollar, your foreign holdings are worth more dollars even when local share prices stand still. If the dollar strengthens, the reverse happens. This applies to all four funds here, and it can push returns either way in any period.
Tax Costs Can Shrink the Payoff From a Swap
In an IRA or 401(k), switching funds triggers no immediate tax. In a taxable account, selling VIGI at a gain creates a capital gains bill, taxed at lower long-term rates if you’ve held the shares for more than a year. Some investors instead leave an existing position alone and direct new contributions and reinvested dividends into a replacement fund, which changes the mix over time without forcing a sale.
Total return drives this decision. In delayed quotes from Monday afternoon’s session, FIDI traded at $28.97, and VIGI at $98.39, but a lower price doesn’t make a fund cheaper or a better value. What counts is total return over the same period.
How Your Goals Shape the VIGI vs. FIDI Comparison
The five-year, one-year, and year-to-date records favor the high-dividend style for investors seeking total return or income from international stocks. Compare FIDI, VYMI, and IDV side by side before choosing among them. If you hold VIGI specifically because it favors dividend growers and screens out the highest yielders, and you accept trailing returns as the price of that approach, the fund still matches that goal.
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Ryne Mauck is an investment writer covering exchange-traded funds, retirement planning, and portfolio strategy. Through his work at 24/7 Wall St. and other investment platforms, including Seeking Alpha, he aims to provide clear, research-driven insights that help investors make more informed decisions while maintaining a long-term approach to investing.
Ryne holds a B.Sc. in Finance and an M.A. in Political Science. He is a formerly registered Municipal Advisor Representative and has passed the Series 50, Series 63, and Series 65 exams. His articles are not intended to be, nor should they be interpreted as, financial advice.
