Marketing Communication

Introducing a Pioneering ex-US High Dividend ETF

22 April 2026

Martijn Rozemuller

CEO – Europe

With investors rediscovering high dividend investing and rethinking US allocations, it might be a time for a new ex-US high dividend ETF

Amid the turbulence of 2026, with its geopolitical surprises and market volatility, investors are remembering a simple yet effective way of investing. They are upping their exposures to the big companies that pay high dividends year after year, allowing investors to reinvest for long-term capital gains.

At the same time, they are cutting back on US assets. Whether to escape policy uncertainty, reduce high exposure to mega capitalisation companies or avoid dollar weakness, they appear to be tiring of American exceptionalism¹.

We believe it’s the time to launch Europe’s first ex-US Dividend Leaders ETF². The VanEck Morningstar Developed Markets ex-US Dividend Leaders UCITS ETF (TDVX) aims to provide investors with exposure to the quiet resilience of large companies from Canada, Europe and Asia that have paid dividends through good and bad times.

It seeks to replicate the success of is sister, the VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF (TDIV) but with the option of avoiding the sizeable exposure to US equities that any global equity fund inevitably brings. Over the past year and a bit, investor inflows helped swell TDIV’s assets from USD1.2 billion at the beginning of 2025 to USD8.6 billion in April this year³.

KEY STRUCTURAL DIFFERENCES

TDIV (existing)	New ETF (TDVX)
Domicile: Netherlands	Domicile: Ireland
Currency: EUR	Currency: USD
Dividend treatment: Distributing	Dividend treatment: Accumulating
US exposure: ~20-30%	US exposure: 0%
Top region: North America ~31%	Top region: Europe Dev .~ 55%
TER: 0.38%	TER: 0.38%
Index: Morningstar DM Large Cap Div Leaders	Index: Morningstar DM ex-US Large Cap Div Leaders

Main Risk Factors: Equity market risk, foreign currency risk. Investors must consider all the fund's characteristics or objectives as detailed in the prospectus or related documents before making an investment decision. Please refer to the sustainability-related disclosures in the document section to the KID and the Prospectus, as well as index rulebooks for other information and applicable risks before investing.

Source: VanEck, March 2026.

The Resurgent Appeal of High Dividend Investing

TDIV’s popularity can be explained by both this decade’s shift in the interest rate environment and high dividend stocks’ typically resilient performance. In the 2010s era of low interest rates, investors prized ‘growth at any price’ but with rates higher once again they value the cash returns of high dividends.

Big companies’ strong cash-flows typically underpin dividends even through moderate economic downturns. That means dividend strategies might not only perform well in rising stock markets but also in times of volatility, even though every market cycle is different. As we mentioned in our January blog, 2025 illustrated this well, with the TDIV ETF proving less volatile than world markets, represented by the MSCI World Index, following the announcement of US tariffs in April 2025 (see chart). It is worth noting that this behavior might not be replicated in the next volatility cycles.

Rolling 3 Months Volatility

Source: Morningstar, December 2025.

It’s also worth noting that dividends have provided a large proportion of long-term total stock market returns. Looking back at the Global Stock market over more than 40 years, reinvested dividends have provided approximately half of the key MSCI World Index’s total return for investors (see chart).

Dividends Are Critical to Investment Outcomes

Source: Morningstar, December 1971 - March 2026.

Avoiding US Concentration Risk

For investors who are concerned about the US concentration risk that can come with investing in a global equity fund, our new TDVX ETF provides exposure to a high dividend strategy while seeking to reduce reliance on the US market. It replaces US exposure with diversified high dividend stocks across Europe, Canada, Japan, Australia and Asia.

The chart below illustrates what this means in terms of regional exposures. (The current TDIV ETF’s benchmark is in navy blue, while the new ETF’s is in green. For comparison, the MSCI World Index is in red.)

Regional Exposure

Source: Morningstar, March 2026.

In terms of sectors the new TDVX ETF has less exposure to communication services stocks, such as Verizon Communications. Instead, it has greater exposure to financial stocks like Zurich Insurance Group.

Sector Exposure

Source: Morningstar, March 2026.

A New Option for Investors

When launching Europe's first high dividend ETF excluding the US¹, we have listened to investors. Inflows into high dividend ETFs tell us that they are looking for the reassurance of dividends that historically provided some comfort in times of muted returns, though past performance is not a reliable indicator of future results. But investment flows indicate that many investors want to cut back on US assets.

With dividend investing back in vogue and investors wary of the US, it’s a pioneering ETF in unprecedent times.

¹ CNBC. 2 April 2026. One year on from Trump’s Liberation Day, global investors are rethinking American exceptionalism.

² Source: Morningstar, April 2026.

³ Source: VanEck, data for the period 31 December 2024 to 13 April 2026.

IMPORTANT INFORMATION

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The views and opinions expressed are those of the author(s) but not necessarily those of VanEck. Opinions are current as of the publication date and are subject to change with market conditions. Information provided by third party sources is believed to be reliable and has not been independently verified for accuracy or completeness and cannot be guaranteed.

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VanEck Morningstar Developed Markets ex-US Dividend Leaders UCITS ETF ("ETF") is a sub-fund of VanEck UCITS ETFs plc, a UCITS umbrella investment company, registered with the Central Bank of Ireland, passively managed and tracking an equity index. The product described herein aligns to Article 8 Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector. Information on sustainability-related aspects pursuant to that regulation can be found on www.vaneck.com. Investors must consider all the fund's characteristics or objectives as detailed in the prospectus, in the sustainability-related disclosures or related documents before making an investment decision.

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Important Disclosure

This is a marketing communication. Please refer to the prospectus of the UCITS and to the KID before making any final investment decisions.

This information originates from VanEck (Europe) GmbH, which has been appointed as distributor of VanEck products in Europe by the Management Company VanEck Asset Management B.V., incorporated under Dutch law and registered with the Dutch Authority for the Financial Markets (AFM). VanEck (Europe) GmbH with registered address at Kreuznacher Str. 30, 60486 Frankfurt, Germany, is a financial services provider regulated by the Federal Financial Supervisory Authority in Germany (BaFin).

The information is intended only to provide general and preliminary information to investors and shall not be construed as investment, legal or tax advice VanEck (Europe) GmbH, VanEck Switzerland AG, VanEck Securities UK Limited and their associated and affiliated companies (together “VanEck”) assume no liability with regards to any investment, divestment or retention decision taken by the investor on the basis of this information. The views and opinions expressed are those of the author(s) but not necessarily those of VanEck. Opinions are current as of the publication date and are subject to change with market conditions. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results. Information provided by third party sources is believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. Brokerage or transaction fees may apply.

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