Vanguard International Price, Forecast, Insider, Ratings, Fundamentals & Signals

Vanguard's 2023 Market Outlook predicts the outperformance of international equities, making international diversification important for portfolio performance if Vanguard turns out to be correct. Vanguard International High Dividend Yield ETF offers a high amount of international diversification, a solid dividend yield, and attractive valuation compared to peer funds. VYMI has multiple top strong holdings including Toyota Motor Corporation and Novartis that demonstrate strong growth and valuation qualities compared to the top holdings for similar ETFs.

US stocks outperformed international stocks in Q1, with the S&P 500 returning close to 10% and the ex-US index returning near 5% through March 27. The Vanguard International High Dividend Yield Index Fund ETF kept pace with US large caps over the back half of the quarter, suggesting better relative strength. VYMI's technical situation has improved, with growing assets, low valuation, and positive momentum indicators, making it a strong value investment.

These three Vanguard ETFs offer dividend yields from 3.01% to 4.55%. They all own high-yield dividend stocks but have different focuses.

VYMI is one of the largest international dividend ETFs in the market. It offers investors a growing 4.6% yield, cheap valuation, and momentum. My assessment of the fund led me to a buy rating.

Dividend stocks are frequently praised for their ability to build wealth over time. Academic studies, however, clearly show that most dividend stocks lose money for their shareholders over time.

Foreign stocks, particularly those with solid yields, are relatively cheap compared to the S&P 500. The Vanguard International High Dividend Yield Index Fund ETF Shares offers low valuation and solid long-term growth trends. VYMI has a high dividend yield, low expense ratio, and impressive ETF grade, but its technical situation is mixed.

Dividend investing is often looked down upon by factor investors, but research shows that dividends play a crucial role in long-term investment returns. Factors like market, size, and value have been identified as key drivers of investment returns, but implementing factor strategies can be costly and may not outperform simple index funds. Global evidence supports the importance of dividends, with studies showing that dividend stocks outperform non-dividend paying stocks and contribute significantly to total returns.

While the stock market has recorded an incredible rally in 2023, topping all expectations, its journey in the second half has been rough.

VYMI has underperformed its close peer VYM since inception. US stocks in general have grown earnings faster than international peers, even if they have also enjoyed some multiple expansion. VYMI's stock selection methodology is sound. Weighting higher dividend yield stocks by market-cap results in more of a blue chip fund than the high yield fund its name suggests. VYMI's basket of stocks trades at a suitably low valuation. It has a good shot of narrowing its underperformance versus VYM.

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.