Vanguard International High Dividend Yield ETF

VYMI

Market cap $20.1B

The Vanguard International High Dividend Yield ETF (NASDAQ:VYMI) sits in a lot of income portfolios as the foreign-stock complement to a domestic dividend sleeve, and its payouts have grown noticeably over the past three years.

“Stagflation” is a painful economic condition that combines stagnant growth with high inflation. Investing in broadly diversified index funds of U.S. stocks, bonds, and international stocks could offer protection from stagflation.

The Fidelity International High Dividend ETF (NYSEARCA:FIDI) is Fidelity's answer for U.S.

While the resurgence of American industry and business is certainly laudable, the rest of the international community is not being left behind completely.

The Vanguard Total Bond Market ETF outperformed the S&P 500 index for several years after the 2008 global financial crisis. During the most recent bear market in 2022, the Vanguard International High Dividend Yield ETF outperformed the S&P 500.

While dividend stocks aren't getting much attention, a pair of Vanguard high-yield ETFs has each attracted more than $2 billion in net new money. High-yielders have been one of the better-performing defensive areas of the equity market.

This article provides in-depth coverage of Vanguard's $19B International High Dividend Yield ETF, a well-established and well-diversified fund with a cheap 0.07% ER and an estimated yield approaching 4%. VYMI offers adequate exposure to European, Pacific, Canadian, and Emerging Markets, though is heavily tilted to Financials (42%). Nevertheless, strong dividend growth is likely sustainable, given how my fundamental analysis reveals high sales and EPS growth rates, 15% profit margins, and a 14% portfolio-level ROIC.

VYMI is a simple high-yield international equity index ETF. It currently yields 3.4%, and trades with a massive 45% discount to the S&P 500 on an earnings basis.

There's no such thing as a guaranteed inflation-proof investment. But this Vanguard ETF could be good for a high-inflation environment.

The Fidelity International High Dividend ETF (NYSEARCA:FIDI) has quietly become one of the better performers in international income, returning 29% over the past year and 9% year to date through May 7.