The Vanguard International High Dividend Yield ETF (VYMI) is emerging as a top choice for risk-averse investors seeking dividend income and diversification. With a low expense ratio of just 0.07% and a yield of approximately 3.3%, VYMI offers a compelling alternative to individual stocks, which can be more volatile and susceptible to payout cuts. The fund’s portfolio includes over 1,500 stocks, with its largest holding comprising only 1.8%, significantly mitigating the risk associated with concentration.
This ETF’s geographic diversification is particularly relevant amid current geopolitical tensions, with 43% of its holdings in Europe, 27% in the Pacific, and 21% in emerging markets. Over the past year, VYMI has outperformed the S&P 500, gaining 24% compared to the index’s 16% rise.
For investors focused on stable income and risk management, adding VYMI to their portfolio could enhance both yield and diversification, making it a strategic long-term investment.
Source: fool.com