The fund tracks the NASDAQ International Dividend Achievers Index and selects companies in developed and emerging markets outside the US with a clear record of dividend growth. It also holds ADRs and GDRs in addition to common stocks, providing broad exposure to global dividend payers.

It suits investors who want stable dividend growth outside the US market, as well as long-term investors looking to diversify the income portion of their portfolios.

Invesco launched this passive (index-tracking) ETF in 2005.

The portfolio is built from non-US companies that have increased their regular annual cash dividends for five consecutive years. Rather than weighting by market capitalization, the index applies its own weighting method that takes factors such as dividend yield into account, and the weighting of certain countries, such as Canada, tends to be relatively high.

• Strict selection criterion of five consecutive years of dividend increases
• Holdings differ from those of traditional market-cap-weighted indexes

Assets under management (AUM) stand at $892.5M, and the expense ratio is 0.53% per year.

Compared with similar international dividend ETFs such as VYMI or VIGI, its stock selection criteria are more specific. In particular, its high weighting in Canadian energy and financial sectors makes it highly sensitive to conditions in those markets.

The fund has delivered solid results when the dividend stock sector gains appeal amid changes in the global interest rate environment. In periods when value stocks with stable cash flows draw attention, it has held up steadily relative to its benchmark, and the sustainability of dividend policies supports share prices more than improvements in individual company earnings.

Diversification demand from investors seeking to reduce their exposure to the concentrated US market is flowing into the dividend growth theme. It is especially chosen as a core building block of international dividend portfolios among conservative investors who value regular income.

The fund allows stable investing centered on proven dividend growth stocks, but investors should consider its high country concentration and relatively high expense ratio.

VYMI, shown in the table, is a low-cost alternative that invests in a broader range of international high-dividend stocks, while VIGI selects quality companies with longer dividend growth records. Dimensional's DFAI and DFIC also offer international market exposure through active quantitative strategies and are worth reviewing alongside it. PID offers a choice that is more focused on the distinct factor of dividend growth than these funds.

Here are the key factors to review before investing in PID. Beyond simple high-dividend investing, it is necessary to fully understand the sustainability that comes with dividend growth.

Because of its high weighting in the energy and financial sectors, sector-level volatility can increase with commodity price swings or changes in interest rate policy. Investors should also note that an economic downturn or regulatory change in a particular country can put downward pressure on the performance of the entire portfolio.

It is a suitable tool for investors who want to enjoy the value of dividend growth in markets outside the US. Used together with an asset allocation strategy that accounts for country concentration, it can contribute to building a stable income portfolio.