Summary

• This article provides in-depth coverage of Vanguard's $19B International High Dividend Yield ETF, a well-established and well-diversified fund with a cheap 0.07% ER and an estimated yield approaching 4%.
• VYMI offers adequate exposure to European, Pacific, Canadian, and Emerging Markets, though is heavily tilted to Financials (42%).
• Nevertheless, strong dividend growth is likely sustainable, given how my fundamental analysis reveals high sales and EPS growth rates, 15% profit margins, and a 14% portfolio-level ROIC.
• VYMI also trades at a cheap 13.55x trailing P/E compared to 21.11 for VYM, its U.S. counterpart. However, VYMI is expensive compared to itself based on its five-year average P/E.
• Still, VYMI earns a "hold" rating based on its solid fundamentals and consistently-impressive long-term total returns. Detailed comparisons with IDV, SCHY, VIGI, and VYM are below.

Investment Thesis

Today, I'm excited to initiate coverage on the Vanguard International High Dividend Yield ETF (VYMI), one of the most popular ETFs in its category, with over $19 billion in assets and an ultra-low 0.07% expense

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of SCHD, RY:CA, TD:CA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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