VNQI - Nice dividend with a dollar hedge

Looking at a way to take a contrarian view of the strong dollar., VNQI etf might be an interesting route. The dividend is higher than your standard international equity index fund at a five year average of $2.60 dollars per share. Representing a 5.9% interest rate at todays prices. The ten year average dividend is $2.45, representing a 5.5% rate at todays stock price. These are well above your income yield opportunities in other assets at this risk level. So we are collecting a nice dividend while possibly getting a boost in stock price if foreign currencies start to look attractive again.

It definitely has some heads winds with the strong dollar and rising interest rates, but the low valuation and beat down stock price should start attracting some attention.

VNQI has positions in some of the best real estate assets in the world from German residential, Australian logistics, Hong Kong and Japanese hotels. And being able to get this in ETF form which helps mitigate the individual stock risk is a nice bonus.