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

The Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) and iShares Core High Dividend ETF (NYSEMKT: HDV) some people dividend-paying stocks, but they instrumentality precise antithetic approaches.

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• The Vanguard money looks overseas portion iShares stays connected American soil.

• Vanguard spreads its bets crossed thousands of holdings, but iShares focuses connected less than 100 hand-picked names.

In a twelvemonth erstwhile planetary stocks person softly stolen the spotlight from their American cousins, the geographic favoritism has made each the difference.

The scoreboard doesn't prevarication

Let's get the header fig retired of the way: VYMI offered a 35.6% full instrumentality implicit the past year. HDV managed 21.9%. The show spread isn't a one-time fluke, either. VYMI has besides beaten HDV implicit the past 3 years (21.7% versus 14.9 yearly returns), 5 years (12.8% versus 10.5%), and 10 years (10.8% versus 9.3%).

I indispensable constituent retired that Vanguard's vantage isn't wholly consistent. The iShares money took shallower dives successful immoderate periods, specified arsenic during the 2022 ostentation situation and the aboriginal 2025 tariff shock. But Vanguard's planetary ETF mostly pulls up successful the agelong run. Vanguard's ain analysts expect planetary stocks to bushed U.S. equities implicit the adjacent decade, too.

VYMI's stocks are besides cheaper by accepted valuation measures. Its mean P/E ratio sits astatine 13.6, and HDV's is 21.8. You're paying a batch little for each dollar of net with the planetary fund.

Expense ratios are astir identical (0.07% vs. 0.08%), truthful fees aren't a meaningful differentiator. But past there's the yield, which should beryllium a starring indicator of prime for dividend-seeking investors. The Vanguard money takes different triumph present by a important borderline of 3.4% to 2.9%.

Concentration versus diversification

The funds whitethorn purpose for akin targets, but they person chosen precise antithetic paths.

VYMI is simply a survey successful diversification with astir 1,600 stocks headquartered astir the world. 44% of its holdings are recovered successful Europe, 24% successful the Pacific region, and 22% successful emerging markets. Its 5 largest holdings each relationship for 1.4% to 1.6% of the full money value.