VYMI ETF

I added $10,000 of VYMI to my portfolio to complement my $92,000 SCHD position, providing exposure to non-US dividend stocks—a sector I find lacking a true equivalent to SCHD. VYMI offers diversified exposure to high-yield dividend companies across developed and emerging markets, with a competitive 0.22% expense ratio and a strong yield of 4.55%. I see dividends as one of the few viable ways to invest in non-US equities, given the weaker focus on shareholder returns and fewer stock buybacks in global markets compared to the US.

The Vanguard International High Dividend Yield Index Fund offers high dividend yields and has matched US equity market returns since 2022, outperforming international competitors. VYMI is value-tilted, with overweight positions in the Financial and Energy sectors, providing diversification from US Tech-heavy equities and reducing reliance on US domestic stocks. VYMI's 4.4% dividend yield and 6% annualized dividend growth rate make it a strong choice for income investors, despite potential temporary dividend reductions during global economic downturns.

Geographic diversification has been a drag on portfolios, but investing internationally may make a comeback. Vanguard International High Dividend Yield Index Fund ETF Shares offers exposure to high dividend-paying international companies through a simple ETF. The VYMI ETF has over 1,500 companies, extensive diversification, low Tech exposure, and attractive yield, making it a suitable option for international diversification.

Vanguard International High Dividend Yield Index Fund ETF primarily invests in foreign large cap value stocks with high-yielding dividends, particularly in Europe. VYMI has a strong uptrend since November 2023 and is trading near all-time highs, making pullbacks potential buying opportunities. The fund is well-diversified with no oversized positions, offering investors peace of mind and exposure to various industries.

US stocks outperformed international stocks in Q1, with the S&P 500 returning close to 10% and the ex-US index returning near 5% through March 27. The Vanguard International High Dividend Yield Index Fund ETF kept pace with US large caps over the back half of the quarter, suggesting better relative strength. VYMI's technical situation has improved, with growing assets, low valuation, and positive momentum indicators, making it a strong value investment.

Vanguard's 2023 Market Outlook predicts the outperformance of international equities, making international diversification important for portfolio performance if Vanguard turns out to be correct. Vanguard International High Dividend Yield ETF offers a high amount of international diversification, a solid dividend yield, and attractive valuation compared to peer funds. VYMI has multiple top strong holdings including Toyota Motor Corporation and Novartis that demonstrate strong growth and valuation qualities compared to the top holdings for similar ETFs.

VYMI is one of the largest international dividend ETFs in the market. It offers investors a growing 4.6% yield, cheap valuation, and momentum. My assessment of the fund led me to a buy rating.

Foreign stocks, particularly those with solid yields, are relatively cheap compared to the S&P 500. The Vanguard International High Dividend Yield Index Fund ETF Shares offers low valuation and solid long-term growth trends. VYMI has a high dividend yield, low expense ratio, and impressive ETF grade, but its technical situation is mixed.

VYMI has underperformed its close peer VYM since inception. US stocks in general have grown earnings faster than international peers, even if they have also enjoyed some multiple expansion. VYMI's stock selection methodology is sound. Weighting higher dividend yield stocks by market-cap results in more of a blue chip fund than the high yield fund its name suggests. VYMI's basket of stocks trades at a suitably low valuation. It has a good shot of narrowing its underperformance versus VYM.