Generated April 2026 from current fund data.
Overview
VYM and VYMI are both Vanguard dividend-focused index ETFs, but they cover different geography. VYM tracks high-dividend U.S. large-cap stocks through the FTSE High Dividend Yield Index. VYMI targets the same strategy but internationally—the FTSE All-World ex US High Dividend Yield Index—giving you exposure to dividend payers outside America. Both charge minimal fees and distribute quarterly.
How they differ
The core difference is geography: VYM is purely U.S., VYMI is everything except the U.S. That shapes everything downstream.
VYMI yields higher—3.31% versus VYM's 2.25%—reflecting stronger dividend payout ratios in many developed and emerging markets outside the U.S. But VYMI also carries slightly more currency risk (unhedged to the dollar) and political/regulatory risk across dozens of countries, while VYM's beta of 0.77 suggests it's historically moved less than the broad market. VYMI's beta of 0.84 is similar but less defensive.
On size and cost: VYM is vastly larger at $88.7 billion in AUM versus VYMI's $18.8 billion, giving VYM tighter spreads and deeper liquidity. VYMI charges 0.07% versus VYM's 0.04%—a small gap, but it compounds over decades. VYM has nearly two decades of track record; VYMI launched in 2016, so it has weathered fewer full market cycles.
Who each is best for
VYM: U.S.-focused investors seeking stable, moderate dividend income with minimal volatility and cost. Works well for core portfolio holdings in taxable accounts where the low expense ratio and tax efficiency shine.
VYMI: Investors already holding significant U.S. equity exposure who want geographic diversification and are willing to tolerate currency fluctuations for higher yield. Suitable for those seeking international dividend income without single-country concentration.
Key risks to know
- Currency exposure: VYMI is unhedged to the dollar, so a stronger greenback erodes returns when you convert dividends and principal back home. VYM has no foreign-exchange risk.
- Lower liquidity and narrower AUM: VYMI's $18.8 billion asset base is smaller, which may result in wider bid-ask spreads during volatile periods. VYM's massive scale means tighter execution costs.
- Higher yield sustainability: VYMI's 3.31% yield is attractive, but international dividend policies are less stable than U.S. ones—regulatory changes or economic downturns abroad can trigger dividend cuts more readily than in the U.S.
- Emerging-market concentration: VYMI's "All-World ex US" mandate includes emerging markets, which carry higher political and liquidity risk than developed-market equities in VYM.
- Tracking error in smaller funds: VYMI's smaller size means it may drift slightly more from its index during market stress, though historical deviation has been modest.
Bottom line
If you want a core, low-cost dividend holding anchored in the U.S. with minimal volatility and deep liquidity, VYM is the obvious choice. If you already have solid U.S. equity exposure and want to diversify internationally while harvesting a higher yield, VYMI fills that gap—just understand you're taking on currency and geopolitical variability to do so. Past performance doesn't guarantee future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
