VYMI: This International ETF Could Help You Earn Higher Dividends

By Ben Gran – Mar 12, 2026 at 10:37AM ESTKey PointsThis Vanguard ETF has outperformed the S&P 500 and Nasdaq-100 indexes in the past year. The long-term results are solid, too, with an 11.8% annualized return over the past 10 years. The Iran war could be a near-term risk to this ETF since it owns stocks in emerging markets.If you want to invest in international stocks, there are many ways to do it. One tried-and-true method to buy the world beyond America is to choose an international stock exchange-traded fund (ETF), like the Vanguard Total International Stock ETF (VXUS 2.07%). This ETF owns 8,691 international stocks and has delivered average annual returns of 10.6% for the past 10 years. But what if you want international stocks with a better chance of high dividend income? If so, you might want to buy the Vanguard International High Dividend Yield ETF (VYMI 1.76%). This fund has outperformed the VXUS for the past 10 years, with average annual returns of 11.8%. And during the past year, the VYMI has outperformed the S&P 500 index and the tech-heavy Nasdaq-100 index. Let's look at why this international dividend stock ETF could be a good choice. VYMI data by YCharts VYMI: Diversified international stocks, dividend focus The Vanguard International High Dividend Yield ETF is, like the popular VXUS, a broadly diversified fund. The VYMI fund owns 1,535 stocks. And it's passively managed, which keeps expenses low -- the fund's expense ratio is only 0.07%. But here's what makes the VYMI fund different from other international stock funds like the VXUS: The VYMI has an emphasis on stocks that are forecast to pay higher-than-average dividend yields. Image source: Getty Images. Here are the top five stocks held by the VYMI, and the approximate forward dividend yield for each: Stock Holding as % of Fund Forward Dividend Yield (as of March 8, 2026) Roche Holding AG 1.8% 2.9% HSBC Holdings PLC 1.7% 4.5% Novartis AG 1.6% 3% Nestlé SA 1.4% 3.9% Toyota Motor 1.4% 2.6% Data sources: Vanguard, Yahoo Finance. Not every high-yield dividend stock is a good buy, and not every stock in the VYMI pays the same high dividend. But that sample list of stocks is promising dividends that are competitive with some of the best high-yield dividend stocks. Should you buy the VYMI? If you want to invest in international stocks, it's important to understand the risks. When you buy an international ETF like the VYMI, you are buying hundreds of stocks in a variety of regions and markets. This helps you diversify against the risks of investing too much in any one company, country, or currency. One risk of investing in the VYMI is that about 21.1% of its holdings are in emerging market stocks. These countries with smaller economies tend to be larger risks for investors during times of rising oil prices and international conflict. We're seeing that now with the stock market volatility from the Iran war. ExpandNASDAQ: VYMIVanguard International High Dividend Yield ETFToday's Change(-1.76%) $-1.68Current Price$93.84Key Data PointsDay's Range$93.58 - $94.5952wk Range$65.08 - $101.71Volume405K Ever since Feb. 28, when the Iran war started, the VYMI has declined by about 5%. If oil prices stay high for a long time, this could be bad news for international stocks in oil-importing countries like Japan, which makes up 14.2% of the VYMI fund's holdings. If the Iran war ends soon, the VYMI share price could recover fast. And this international ETF has a strong track record of annual returns for the past 10 years. Long-term investors should consider buying the VYMI.Read NextFeb 18, 2026 •By Todd ShriberCan Vanguard's International High Dividend Yield ETF Outperform Again in 2026?Feb 16, 2026 •By David Dierking1 Unstoppable Vanguard ETF That Could Crush the S&P 500 (Again) in 2026Feb 6, 2026 •By David DierkingCan Vanguard's International High Dividend Yield ETF Outperform Again in 2026?Feb 3, 2026 •By Stefon WaltersThis Vanguard ETF Has Doubled the S&P 500's Returns Since the Start of 2025. Is It a Buy Now?Jan 31, 2026 •By Matt Frankel, CFPEven Near an All-Time High, This Dividend ETF Looks Extremely CheapDec 29, 2025 •By Todd ShriberWhy This High-Dividend ETF Is One I Would Hold ForeverAbout the AuthorBen Gran is a contributing analyst at The Motley Fool, covering publicly traded companies in consumer goods, technology, transportation, industrials, materials, and energy. He is a longtime freelance finance writer with 15+ years of experience writing for publications like Forbes Advisor, Motley Fool Money, and Business Insider, and corporate websites of Prudential and regional banks. Ben also ghostwrites books and bylines for CEOs and other business thought leaders. He earned his B.A. in History from Rice University. Ben is an avid international traveler and has visited 12 countries (and counting).TMFBenjaminGranStocks MentionedVanguard International High Dividend Yield ETFNASDAQ: VYMI$93.84(-1.76%)-$1.68Vanguard Total International Stock ETFNASDAQ: VXUS$77.43(-2.04%)-$1.62*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.