VYMI is a simple high-yield international equity index ETF. It currently yields 3.8%, and trades with a massive 50% discount to the S&P 500 on an earnings basis. It has returned more than 30% YTD, as international sentiment improves, and the dollar drops.
Vanguard International High Dividend Yield ETF (VYMI) offers diversified exposure to non-US high dividend stocks with a 4.28% yield and solid dividend growth. VYMI's portfolio is globally diversified, heavily weighted in financials, and includes major holdings like HSBC, Novartis, Roche, and Nestle. VYMI stands out for its large asset base, strong track record, and competitive 0.17% expense ratio, though it's not the absolute cheapest option.
The U.S. dollar index has experienced its worst half-year in decades. There are compelling reasons to believe this trend could continue. We look at VYMI and discuss whether it could serve as a good hedge against a further dollar decline for dividend investors.
| NASDAQ (NMS) Exchange | US Country |
The company operates an investment fund that strategically focuses on replicating the performance of a carefully selected index. This index comprises companies situated in both developed and emerging markets, with the notable exclusion of the United States. The primary criterion for the selection of these companies is their potential to offer above-average dividend yields. By employing a sampling strategy, the fund seeks to invest in a wide array of securities that collectively mirror the index's key attributes, ensuring a diversified investment portfolio for its stakeholders.
This product consists of investing in a diversified collection of securities designed to approximate the overall performance and characteristics of the fund's targeted index. The aim is to combine the benefits of broad market exposure with the potential for above-average dividend yields, particularly focusing on companies outside of the United States.
The fund specifically invests in companies located in developed and emerging markets, offering investors the opportunity to diversify their portfolio internationally. This approach allows investors to explore investment opportunities in various economic landscapes while aiming for high dividend yields.
One of the key selection criteria for the index this fund mirrors is the forecast of above-average dividend yields. This entails a meticulous analysis of companies' financial health and their ability to sustain and potentially increase dividend payouts, aiming to provide a steady income stream to investors alongside capital appreciation opportunities.