VanEck Splits Its Dividend Strategy in Two as International Stocks Surge
VanEck launches TDVX, a new international dividend ETF on the LSE, as global investors pour $24 billion into dividend funds in Q1 2026.
The flood of cash into dividend-focused funds shows no signs of slowing. Global investors poured $24 billion into such strategies in the first quarter of 2026 — the strongest start to any year in four years. VanEck, the New York-based asset manager, is capitalising on the momentum by cleaving its flagship dividend ETF into a dedicated international version.
The new VanEck Morningstar Developed Markets ex-US Dividend Leaders UCITS ETF (TDVX) began trading on the London Stock Exchange on 23 April. It mirrors the methodology of the firm’s established TDIV fund but strips out all US equities entirely. The decision to launch a separate product rather than a new share class stems from a structural constraint in the original fund.
TDIV, which manages roughly €7.4 billion, is domiciled in the Netherlands. That jurisdiction once offered local investors a tax advantage, allowing them to reclaim part of the withholding tax. But the Dutch structure has blocked the creation of an accumulating share class — an increasingly sought-after feature. TDVX sidesteps this problem by shifting its home to Ireland, where international securities typically benefit from more favourable withholding tax treatment and where product design is more flexible.
The parent fund’s strategy has been performing well at the market level. TDIV has gained nearly 25% over the past twelve months and currently trades at €52.22, just over 1% below its 52-week high. The latest quarterly distribution came in March 2026 at €0.21 per share, with the next payout expected in June. For the full year 2025, investors received $1.98 per share, up from $1.814 the year before, representing average dividend growth of 16.89% over three years.
The underlying Morningstar index applies a rigorous selection process. It does not simply pick the 100 stocks with the highest dividend yields. Instead, it requires companies to have paid a dividend in the past twelve months, to have maintained or grown their per-share payout over the last five years, and to keep their forward-looking payout ratio below 75%. An ESG screen also excludes firms involved in controversial products or with severe sustainability risks. The index rebalances semi-annually in June and December, and no single sector can exceed 40% of the portfolio.
Financials dominate the sector allocation at 31.6%, followed by energy at 17.9% and healthcare at 15.3%. Top individual holdings include Exxon Mobil, Verizon and Nestlé in the original fund, while Pfizer also features among the largest positions.
The timing of the product expansion looks deliberate. International equities have been on a tear. The MSCI All Country World ex-USA has outperformed the S&P 500 by double-digit percentage points over the past year, and that trend has continued into 2026. Investors are hunting for tangible returns beyond the big US tech names, which are ploughing capital into artificial intelligence rather than share buybacks.
TDIV itself sits at €52.13, roughly 7.8% above its level at the start of the year and nearly 24% above its summer 2025 low. With TDVX, VanEck now offers a vehicle for those who want to ride the international dividend wave without US exposure — and with an Irish wrapper that cuts the tax drag on foreign holdings.
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