Invested $1,000 in the Vanguard MSCI Index International Shares ETF (VGS) in 2018? Here's how much dividend income you've received

Has this ETF really returned more than 60% in just five years?

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Key points

  • The Vanguard MSCI Index International Shares ETF has posted a 47% gain over the last five years 
  • In the meantime, the ETF has been providing quarterly dividends
  • Indeed, each of its units has provided around $9.19 of dividend income since March 2018

Anyone who has been invested in the Vanguard MSCI Index International Shares ETF (ASX: VGS) since March 2018 will likely know of the fund's strong performance.

It's gained an impressive 47% in the five years since to trade at $95.87 right now.

The exchange-traded fund (ETF) tracks the MCSI World ex-Australia Index, providing exposure to many of the globe's largest companies.

Its units were trading for $65.15 apiece five years ago. That means a $1,000 investment at that time likely would have bought 15 units. Today, that parcel would be worth around $1,438.05.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has lifted just 19.5% over the same period.

But what happens when we also factor in the quarterly dividends on offer by the ETF? Let's take a look.

How much has the VGS ETF paid in dividends in 5 years?

Here are all the dividends paid out by the Vanguard MSCI Index International Shares ETF since March 2018, rounded to the nearest tenth of a cent:

VGS dividends' pay dateDividend value (rounded to the nearest tenth of a cent)
January 202330.3 cents
October 202234.8 cents
July 202254.8 cents
April 202240.8 cents
January 202243.1 cents
October 202134.3 cents
July 202181.3 cents
April 202131.6 cents
January 202140.3 cents
October 202034.5 cents
July 202063.5 cents
April 202045.4 cents
January 202045.1 cents
October 201937 cents
July 201973 cents
April 201948.4 cents
January 201939 cents
October 201830.3 cents
July 201890.9 cents
April 201821 cents
Total:$9.19

As readers can see, each Vanguard MSCI Index International Shares ETF unit has paid around $9.19 of passive income over the last half-decade.

That means our figurative parcel has likely provided $137.85 of dividend income, leaving it with a total return on investment (ROI) of around 61%.

And that's before considering the potential benefits that might have been brought about if one had reinvested their offerings, thereby compounding their gains.

At the time of writing, the Vanguard MSCI Index International Shares ETF boasts a 1.68% trailing dividend yield.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Vanguard Msci Index International Shares ETF. The Motley Fool Australia has recommended 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 Scott Phillips.

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