Vanguard International High Dividend Yield ETF vs. iShares Core High Dividend ETF: Which Is the Better Buy in May?

Dividend investors face a compelling choice between two ETFs: the Vanguard International High Dividend Yield ETF (VYMI) and the iShares Core High Dividend ETF (HDV). While both funds offer competitive yields and low fees, their geographic focus and investment strategies set them apart. VYMI, which targets international stocks, has outperformed HDV, which concentrates on U.S. equities, with a total return of 35.6% over the past year compared to HDV’s 21.9%.

The performance disparity highlights the increasing appeal of international equities, especially as VYMI boasts a broader diversification with around 1,600 holdings across various regions, while HDV is limited to just 74 U.S.-based stocks. Additionally, VYMI’s lower price-to-earnings ratio (13.6 versus HDV’s 21.8) suggests better value for investors.

For professionals considering dividend strategies, VYMI emerges as the more attractive option for May 2026, offering higher returns, greater diversification, and a superior yield, making it a compelling choice for long-term growth.

Source: fool.com