With so much uncertainty remaining around the Fed’s rate cycle and the potential for recession, many investors are beginning to look toward international equity markets for the means to build income. Yields continue to look attractive for international dividend ETFs, in particular.
International high-dividend ETFs are funds that hold overseas companies whose dividend payouts have been consistently high (high dividend yield) or which have consistently grown over time (dividend appreciation). In this article, we examine key characteristics of four popular international dividend ETFs, using data from ETF Database and LOGICLY. We also use LOGICLY’s compare tool to look at all of the fund’s YTD performances.
For yields, we encourage readers to visit our list of the Top 100 ETFs with the Highest Dividend Yield, updated daily using FactSet data.
Vanguard International High Dividend Yield ETF (VYMI)
One popular non-US dividend ETF is the $6.4 billion Vanguard International High Dividend Yield ETF (VYMI).
VYMI tracks the performance of the FTSE All-World ex-US High Dividend Yield Index. This index provides exposure to stocks outside the US that have the opportunity to deliver quality dividend yields, with nearly 48% of its portfolio in European companies. Another 40% are in Asia-Pacific stocks.
Since the start of the year, VYMI has brought in nearly $900 million in cumulative flows. It has an expense ratio of 0.22%, which is significantly below the average for its category on ETFDB.com.
According to LOGICLY, the fund currently has a dividend yield (TTM) of 4.53%.