Vanguard International High Dividend Yield Index Fund ETF Shares (VYMI)

Overview

The Vanguard International High Dividend Yield ETF (VYMI) seeks to track the performance of a benchmark index that measures the investment return of common stocks of companies located in developed and emerging markets, excluding the United States, that are characterized by high dividend yields. It provides exposure to dividend-paying stocks in international markets, offering potential income and diversification benefits.

Reputation and Reliability

Vanguard is a highly reputable and reliable issuer known for its low-cost, index-tracking investment products and investor-owned structure.

Management Expertise

Vanguard has a highly experienced management team with a strong track record in managing index funds and ETFs.

Goal

The fund seeks to track the investment return of the FTSE All-World ex US High Dividend Yield Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy designed to track the performance of the FTSE All-World ex US High Dividend Yield Index, which consists of common stocks of companies located in developed and emerging markets, excluding the United States, that are characterized by high dividend yields.

Composition The ETF primarily holds stocks of international companies (ex-US) across various sectors, with a focus on those with high dividend yields. The portfolio is diversified across numerous holdings and countries.

Market Share: VYMI holds a significant market share within the international high dividend yield ETF category.

Total Net Assets (AUM): 3580000000

Key Competitors

• Schwab International Dividend Equity ETF (SCHY)
• SPDR Portfolio Developed World ex-US Dividend ETF (SPDW)
• iShares International Select Dividend ETF (IDV)

Competitive Landscape

The international high dividend ETF market is competitive with several established players. VYMI's advantages include Vanguard's low-cost structure and well-established brand. Disadvantages might include slightly different index methodologies compared to competitors, which can result in variations in performance and holdings. The low expense ratio and high AUM make it a popular option.

Historical Performance: Historical performance data needs to be acquired from financial data providers such as Bloomberg, Yahoo Finance, etc.

Benchmark Comparison: The ETFu2019s performance should be compared to the FTSE All-World ex US High Dividend Yield Index to evaluate its tracking efficiency.

Expense Ratio: 0.22

Average Trading Volume

VYMI exhibits high liquidity with a substantial average daily trading volume, ensuring ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread for VYMI is typically narrow, indicating efficient trading and low transaction costs.

Market Environment Factors

VYMI's performance is influenced by global economic conditions, interest rates, currency fluctuations, and the dividend policies of international companies. Sector growth prospects within the international markets also play a crucial role.

Growth Trajectory

VYMI's growth trajectory is tied to the overall performance of international equity markets and the demand for dividend-focused investments. Changes in the fund's strategy or holdings are periodically updated to maintain alignment with its investment objective.

Competitive Edge

VYMI benefits from Vanguard's strong reputation, low expense ratio, and efficient index tracking. Its broad diversification across international high-dividend-yielding stocks offers investors a compelling value proposition. The fund's large asset base and high liquidity further enhance its attractiveness. These advantages position VYMI as a leading choice for investors seeking international dividend income.

Volatility

VYMI's volatility is dependent on the overall volatility of the international equity markets and the specific sectors it invests in. It could be subject to market fluctuations.

Market Risk

VYMI is subject to market risk associated with international equities, including economic downturns, political instability, and currency fluctuations. Investment concentration in specific countries or sectors could amplify these risks.

Ideal Investor Profile

VYMI is suitable for long-term investors seeking income and diversification through international dividend-paying stocks. It appeals to those looking for a passive, low-cost approach to accessing global equity income.

Market Risk

VYMI is best suited for long-term investors and passive index followers who seek to generate income through international dividend yields.

The Vanguard International High Dividend Yield ETF (VYMI) offers investors a low-cost, diversified approach to accessing high-dividend-yielding stocks in international markets. It tracks the FTSE All-World ex US High Dividend Yield Index, providing exposure to developed and emerging markets excluding the United States. Vanguard's strong reputation and low expense ratio make it a compelling choice for income-seeking investors. While subject to market risk and currency fluctuations, VYMI serves as an efficient tool for international dividend income and diversification. Its suitability is for long-term investors seeking stable income from global equities.

Data Sources:

• Vanguard's official website
• FactSet
• Bloomberg
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and do not constitute financial advice. Past performance is not indicative of future results. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.