VanEck ETF lists new non-US dividend ETF on the LSE

VanEck ETF listed the VanEck Morningstar Developed Markets ex-US Dividend Leaders UCITS ETF (ticker: TDVX, ISIN: IE000QYDXKV5) on the London Stock Exchange on 23 April 2026, expanding its range of income products with a dividend strategy that replicates the methodology of the established global ETF TDIV, but with one structural difference: the total exclusion of US companies.

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Article created by the editorial staff of ETFWorld.co.uk

Martijn Rozemuller, CEO of VanEck Europe

The context: why an ex-US ETF now

The launch comes at a time when demand for exposure to developed markets outside the United States is rising among European investors and beyond. The concentration of US equity returns in recent years within a small number of technology mega-caps has left many portfolios more vulnerable to a reversal in the trend. Added to this are political and macroeconomic factors: the ongoing debate over the sustainability of US federal debt, the shift in regulatory priorities under the new administration, and tensions between the Federal Reserve and the White House are fuelling structural uncertainty surrounding US assets.

In the first quarter of 2026, dividend equity funds attracted around $24 billion in net inflows, the strongest first-quarter result in the last four years, following three consecutive years of outflows. Against this backdrop, VanEck’s decision to launch an ex-US version of its flagship product responds to a genuine demand from investors.

The strategy: what the index tracks and how it works

The TDVX tracks the Morningstar Developed Markets ex-US Large Cap Dividend Leaders Screened Select Index (code: MSDMXLDN), constructed by the research firm Morningstar using a well-established methodology already employed for the global twin index on which the TDIV is based.

The index focuses on high-dividend-yield stocks that have demonstrated a track record of consistent payments and the ability to sustain them over time. The stocks are selected from the universe of the Morningstar Developed Markets Large Cap Index.

The portfolio comprises 100 stocks drawn from the universe of large-cap companies in developed markets, excluding the United States. The selection and weighting criteria include:

•     Dividend yield: the primary selection criterion, based on dividends distributed over the last 12 months
•     Dividend stability: the dividend per share over the last five years must not have recorded negative growth on a cumulative basis
•     Sustainability of future payments: forward payout ratios are considered to exclude unsustainable dividend situations
•     Liquidity of securities: only the most liquid share classes for each issuer are eligible
•     ESG filters: companies in breach of the United Nations Global Compact and those involved in controversial products (cluster munitions, tobacco, etc.) are excluded
•     Diversification: no single security may exceed 5% of the portfolio and no sector may exceed 40%
•     Rebalancing: the index is reconstituted every six months

The index is designed to reduce exposure to so-called ‘yield traps’, i.e. shares that attract investors with generous distributions but conceal weak fundamentals or unsustainable payout ratios.

Martijn Rozemuller, CEO of VanEck Europe, explains how the new product fits into the company’s dividend investment philosophy:

“For many investors, dividends are a sign of quality. High dividend payments can, for example, help to discipline management. Our well-established VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF, based on the same methodology and factor strategy as the new ETF, has been very successful in recent years and has attracted strong investor interest, with a total return of 12.63% per annum, as well as a careful selection of stocks.”

Dmitrii Ponomarev, Product Manager at VanEck Europe, explains the rationale behind the ex-US version:

“With the new VanEck Morningstar Developed Markets ex-US Dividend Leaders UCITS ETF, we aim to offer investors the opportunity to invest in global dividend-paying equities in a diversified manner without exposure to the United States. As with our previous dividend ETF, we also place great importance on stock selection in the new ex-US strategy.”

A comparison with its big brother: TDIV vs TDVX

The TDVX joins the VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF (ticker TDIV, ISIN NL0011683594), the flagship product of VanEck’s dividend range, listed since 23 May 2016.

The TDIV is now one of the leading dividend ETFs available in Europe in terms of assets under management. As at 17 April 2026, the TDIV managed assets of approximately €7.4 billion. The fund is the only one in Europe to physically replicate its specific benchmark index.

As the TDVX is a reinvestment strategy, it does not distribute dividends in the form of coupons: the income is automatically reinvested in the fund, offering a tax advantage for investors resident in Italy who wish to defer taxation for IRPEF purposes. Conversely, the TDIV distributes dividends quarterly, thereby generating a regular cash flow. In 2025, the TDIV distributed a total of $1.98 per unit; in 2024, the distribution was $1.814.

The different tax regimes based on domicile are also significant: the TDIV is domiciled in the Netherlands, whilst the TDVX is domiciled in Ireland, a structure which, for many international securities, entails a reduced withholding tax on income sources.

The Morningstar methodology: from yield to quality

The key differentiator of this family of indices compared to purely ‘yield-chasing’ approaches lies in the exclusion criteria. Morningstar does not simply select the 100 companies with the highest dividends in absolute terms: it verifies that the yield is the result of solid fundamentals and not a fall in the share price.

The index adopts a risk-aware approach to stock selection: it combines high-yield criteria with filters for dividend consistency, sustainability, severe ESG risks and involvement in controversial products. This approach has historically helped to limit exposure during market downturns compared to the parent index.

Weighting is based on dividends distributed over the last 12 months in absolute terms (dividend dollar weighting), with the aforementioned caps of 5% per stock and 40% per sector. The half-yearly rebalancing frequency reduces turnover and limits implicit transaction costs.

Risks to consider

VanEck notes that high returns are not guaranteed and that capital losses are possible. The main risks to consider for those evaluating the TDVX include:

    Equity market risk: the fund invests in equities from developed markets and the value may fall, even significantly

    Currency risk: the reference currency is the US dollar; investors holding euros are exposed to EUR/USD fluctuations

    Sector concentration risk: despite the 40% cap per sector, selection based on dividend yield tends to overweight sectors such as financials, energy and healthcare

    Dividend cut risk: despite sustainability filters, companies in the portfolio may reduce or suspend dividends

    Liquidity risk: although the constituent securities must meet liquidity criteria, tradability may be reduced in extreme market conditions

Conclusions

The VanEck Morningstar Developed Markets ex-US Dividend Leaders UCITS ETF meets a specific demand from European investors: access to a diversified, income-oriented equity portfolio with exposure to global developed markets but without the weight of the United States. The Morningstar methodology, already proven in the sister fund TDIV — which has surpassed €7.4 billion in AUM since its launch in 2016 — ensures a transparent selection process based on the quality and sustainability of dividends, rather than raw yield.

Its accumulation structure and Irish domicile make it a product technically distinct from the TDIV, with a profile suited both to investors seeking long-term capital growth and to those looking for deliberate geographical diversification outside the US. The annual TER of 0.38% is identical to that of the TDIV, a level in line with the average for the quality dividend factor ETF segment.

Source: ETFWorld