Highest Ever for This International Stock ETF -- But Analysts Say It Has Room to Run
Key Points
The Vanguard International High Dividend Yield ETF is trading near its all-time high.
The average price target among Wall Street analysts implies nearly 9% upside in the near term.
From a long-term perspective, the Vanguard International High Dividend Yield ETF looks attractively valued.
- 10 stocks we like better than Vanguard International High Dividend Yield ETF ›
The Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) is trading for an all-time high as of this writing and has already gained 18% in 2025. In general, international stocks are having an excellent year so far, and the relief provided by several trade deals and tariff pauses have provided a catalyst in recent months.
However, just because the Vanguard International High Dividend Yield ETF is at its highest level ever doesn't mean it can't go any higher. In fact, the average price target among the Wall Street analysts who cover the ETF (exchange-traded fund) implies about 9% upside over the short term.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Not only that, but there are some good reasons long-term investors should still consider this 4.2%-yielding index fund for their portfolios. I've bought shares of it for my own portfolio this year, and here's why I'd be comfortable adding even more despite the all-time high share price.
Image source: Getty Images.
The Vanguard International High Dividend Yield ETF in a nutshell
As you might expect, the Vanguard International High Dividend Yield ETF invests in a portfolio of international companies (based outside of the U.S.) that have above-average dividend yields.
Specifically, this ETF tracks an index that consists of more than 1,500 stocks. European companies make up 44% of the portfolio, while companies from the Asia-Pacific region and emerging markets account for 26% and 21%, respectively. There is some (8%) exposure to North American companies that are based in Canada or Mexico.
One important point is that many investors look at an ETF like this and assume it's full of companies you've never heard of. But that isn't the case. If you look at the top holdings of the Vanguard International High Dividend Yield ETF, you'll see some names you're probably very familiar with -- they just happen to be based outside of the United States.
|
Company Name (Ticker Symbol) |
% of ETF's Holdings |
Dividend Yield |
|---|---|---|
|
Nestle (OTC: NSRG.Y) |
1.68% |
3.8% |
|
Roche Holding |
1.53% |
3.8% |
|
Novartis (NYSE: NVS) |
1.51% |
3.5% |
|
HSBC Holdings (NYSE: HSBC) |
1.42% |
5.3% |
|
Shell (NYSE: SHEL) |
1.39% |
4% |
|
Commonwealth Bank of Australia |
1.36% |
1.3% |
|
Royal Bank of Canada (NYSE: RY) |
1.24% |
3.4% |
|
Toyota (NYSE: TM) |
1.22% |
3.6% |
Data source: Vanguard, CNBC. Dividend yields as of 7/20/2025. Ticker symbols only listed for companies that trade on U.S. exchanges.
Like most Vanguard ETFs, the Vanguard International High Dividend Yield ETF has low investment expenses. For a specialized international index fund, an annual expense ratio of 0.17% is certainly on the lower end. To be clear, this isn't a fee you have to pay -- it will simply be reflected in the fund's performance over time.
Cheaper than you might think
Despite its strong performance this year, the Vanguard International High Dividend Yield ETF still looks attractively valued. Take a look at some of the key metrics compared with its U.S.-focused counterpart, the Vanguard High Dividend Yield ETF (NYSEMKT: VYM).
|
Metric |
VYMI (International) |
VYM (U.S.) |
|---|---|---|
|
Average P/E ratio |
12.0 |
19.8 |
|
Average P/B ratio |
1.4x |
2.9x |
|
Earnings growth rate |
13.3% |
10.8% |
|
PEG ratio (P/E divided by earnings growth rate) |
0.90 |
1.83 |
Data source: Vanguard. As of 6/30/2025.
The bottom line
Of course, there are some additional risk factors involved with international stock investing that should be considered. Tariff risk, exchange rate risk, and country-specific regulatory and political headwinds are a few examples. But this is still a big valuation gap.
The bottom line is that even though the Vanguard International High Dividend Yield ETF is trading at an all-time high, it doesn't look like it's too expensive to make a solid long-term investment. Quite the opposite, actually.
Should you invest $1,000 in Vanguard International High Dividend Yield ETF right now?
Before you buy stock in Vanguard International High Dividend Yield ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard International High Dividend Yield ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*
Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 21, 2025
HSBC Holdings is an advertising partner of Motley Fool Money. Matt Frankel has positions in Vanguard International High Dividend Yield ETF. The Motley Fool has positions in and recommends Vanguard Whitehall Funds-Vanguard High Dividend Yield ETF. The Motley Fool recommends HSBC Holdings and Nestlé. The Motley Fool has a disclosure policy.
Recommended Articles
