VYMI: This International ETF Could Help You Earn Higher Dividends

If you privation to put successful planetary stocks, determination are galore ways to bash it. One tried-and-true method to bargain the satellite beyond America is to take an planetary banal exchange-traded money (ETF), similar the Vanguard Total International Stock ETF (NASDAQ: VXUS). This ETF owns 8,691 planetary stocks and has delivered mean yearly returns of 10.6% for the past 10 years.

But what if you privation planetary stocks with a amended accidental of precocious dividend income? If so, you mightiness privation to bargain the Vanguard International High Dividend Yield ETF (NASDAQ: VYMI). This money has outperformed the VXUS for the past 10 years, with mean yearly returns of 11.8%. And during the past year, the VYMI has outperformed the S&P 500 scale and the tech-heavy Nasdaq-100 index.

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Let's look astatine wherefore this planetary dividend banal ETF could beryllium a bully choice.

The Vanguard International High Dividend Yield ETF is, similar the fashionable VXUS, a broadly diversified fund. The VYMI money owns 1,535 stocks. And it's passively managed, which keeps expenses debased -- the fund's disbursal ratio is lone 0.07%.

But here's what makes the VYMI money antithetic from different planetary banal funds similar the VXUS: The VYMI has an accent connected stocks that are forecast to wage higher-than-average dividend yields.

Here are the apical 5 stocks held by the VYMI, and the approximate guardant dividend output for each:

Data sources: Vanguard, Yahoo Finance.

Not each high-yield dividend banal is simply a bully buy, and not each banal successful the VYMI pays the aforesaid precocious dividend. But that illustration database of stocks is promising dividends that are competitory with immoderate of the champion high-yield dividend stocks.

If you privation to put successful planetary stocks, it's important to recognize the risks. When you bargain an planetary ETF similar the VYMI, you are buying hundreds of stocks successful a assortment of regions and markets. This helps you diversify against the risks of investing excessively overmuch successful immoderate 1 company, country, oregon currency.

One hazard of investing successful the VYMI is that astir 21.1% of its holdings are successful emerging marketplace stocks. These countries with smaller economies thin to beryllium larger risks for investors during times of rising lipid prices and planetary conflict. We're seeing that present with the banal marketplace volatility from the Iran war.