The Dollar Is Crashing: VYMI To The Rescue?
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.
VYMI: A Diversified International Dividend ETF That Doesn't Stand Out
VYMI offers broad international exposure with a heavy financials tilt but lacks strong growth or unique sector advantages versus peers. The fund's 4.5% yield is decent, yet alternatives like IDV and EFAS offer higher dividends with similar or better performance. Performance and risk management are average. VYMI does not consistently outperform peers or provide meaningful diversification for US investors.
VYMI: International Equities Offer Superior Income, Growth, And Stability Than The S&P 500
Vanguard International High Dividend Yield Index Fund ETF Shares offers higher yield and lower valuation than US peers, with strong income growth and regional diversification, making it a superior investment opportunity. International equities are currently heavily discounted compared to US stocks, offering attractive entry points and potential for currency-driven gains if the US dollar continues to weaken. US equities face tariff-related risks and slowing growth, while VYMI benefits from less exposure to these risks and potential upside from global economic shifts.
VYMI: Relatively Attractive Valuation Comes With Risks
US markets like the S&P 500 are at historically elevated valuation; it's time to search for international companies trading at reasonable multiples. VYMI offers international diversification and a high dividend yield but is heavily weighted toward cyclical sectors, especially financials. While VYMI's valuation appears reasonable, its dividend is vulnerable in downturns and sector concentration increases risk.
VYMI: Diversify Your Equity Portfolio With High-Yield International Equities
VYMI is an international equity index ETF focusing on higher-yield stocks. The ETF's broad portfolio includes over 1,500 securities, providing extensive industry and country diversification. The fund yields 4.3%, trades at a significant discount to the S&P 500, and has outperformed YTD.
VYMI: Attractive 4.32% Dividend And +12% YTD Gain
VYMI, a Vanguard ETF, offers exposure to high dividend-yielding international stocks, making it attractive in 2025's market favoring value and international equities. VYMI boasts a 4.32% dividend yield, a low expense ratio of 0.17%, and a PE ratio of 11.7. VYMI's outperformance is driven by international stocks surpassing U.S. stocks and a weaker dollar, though this may be temporary due to volatile U.S. trade policies.
VYMI: A Fund That Carries More Risk In The Current Market Environment
The market has become more fluid with deteriorating economic data, political uncertainty, and rising volatility, making capital allocation challenging. There has been a strong emphasis on income-based investments due to low rates since the 2008 financial collapse. The Vanguard International High Dividend Yield Index Fund ETF focuses on delivering substantive and consistent income.
VYMI: International Dividend ETF For Dollar Deprecation
The U.S. dollar is experiencing its worst start to the year since 2008, with a 4.2% decline in the Dollar Index. Tariffs on Canadian and Mexican goods have contributed to the dollar's recent decline, contrary to expectations that these currencies would weaken. European currencies, particularly the euro, have surged due to increased defense spending plans and strained U.S.-Europe relations.
Best Stocks in the World? This ETF Is Crushing the S&P 500 in 2025.
The U.S. stock market hasn't exactly started 2025 on a high note. Through the first week of March, the S&P 500 has fallen by 2%, and the tech-heavy Nasdaq Composite is down by 6%.
VYMI: Buy This Strong 4.85% Yielding Dividend ETF In 2025 For Global Diversification
VYMI offers passive income investors instant diversification and uncorrelated returns on a global scale, providing inexpensive access to almost 1500 cash-flowing businesses in 45 countries across the world. In a US market priced for perfection with valuations sky-high at 37x earnings, VYMI's portfolio design mitigates country, sector concentration, and individual security risks while selling for just 11x earnings. With a strong starting yield of 4.85%, a 4.16% 5YR CAGR, and historical 8% average annual total returns, VYMI is a strong global dividend fund and a diversifying income play.
VYMI: Efficient Way To Diversify Outside Of The US
VYMI provides international exposure with a 4.5% dividend yield, diversifying portfolios and hedging against potential US market downturns. The ETF includes 1,494 holdings across 40 countries, focusing on high-quality companies with attractive price-to-earnings ratios and dividend growth potential. Despite lower dividend growth and minimal tech exposure, VYMI serves as a defensive investment with consistent cash flow sectors and potential currency arbitrage benefits.
Why I Added $10,000 Of VYMI To My SCHD Position
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.
