Vanguard's International Dividend ETF Pays Over 100 Points More Than VYM, And Performs Better Overall

Vanguard’s International Dividend ETF, VYMI, is described as offering higher dividend yield and stronger overall performance than VYM, based on market pricing at the time of the article. The comparison focuses on Vanguard International High Dividend Yield Index Fund ETF Shares (NASDAQ: VYMI) versus Vanguard High Dividend Yield Index Fund ETF Shares (NYSE: VYM), using a set of large-cap dividend payers across financial, energy, biotech and other industries while excluding high-tech firms. The piece argues that VYMI shows better current yield and year-to-date returns, and also outperforms in 1- and 5-year periods, while noting that VYM leads over 10 years. It cites VYMI’s 1-year performance at +5.3% and 5-year at +7.5%. It also addresses objections for U.S. investors, including currency risk, slower growth perceptions, and a 15% foreign withholding tax offset by foreign tax credits using IRS Form 1116, while acknowledging the paperwork burden.