Dividend ETFs remain popular among investors looking for steady income and long-term stability, especially in uncertain markets. Using TipRanks’ Vanguard ETFs tool, we have identified Vanguard High Dividend Yield ETF (VYM), Vanguard Dividend Appreciation ETF (VIG), and Vanguard International High Dividend Yield ETF (VYMI)—each offering a different mix of yield, growth, and global exposure.
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Let’s look at these ETFs in detail.
Vanguard International High Dividend Yield ETF (VYMI)
VYMI provides exposure to high-dividend-paying stocks outside the U.S., offering both global income and geographic diversification. It tracks the FTSE All-World ex U.S. High Dividend Yield Index and currently pays a quarterly dividend of $0.708 per share, reflecting a 3.43% yield.
For investors, VYMI is particularly appealing because it gives access to international markets that many portfolios tend to underweight. These markets not only enhance diversification but often provide higher dividend yields along with the potential for strong performance during certain cycles.
VYMI has an expense ratio of 0.07%. Currently, VYMI holds 1,582 stocks with total assets worth $19.29 billion. Its top holdings are Novartis (NVS), HSBC Holdings (HSBC), and Roche Holding (RHHBY).
Vanguard High Dividend Yield ETF (VYM)
The Vanguard High Dividend Yield ETF takes a simple approach by investing in a broad mix of companies that pay above-average dividends, making it a well-diversified choice. The fund has a low expense ratio of 0.04%, compared to VYMI.
VYM currently pays a quarterly dividend of $0.862 per share, which translates to a 2.25% yield. Unlike some dividend funds that chase the highest yields, VYM focuses on stability and consistency, even if that means a slightly lower yield.
The ETF owns 615 stocks and manages about $76.52 billion in assets. Its top 10 holdings account for roughly 26% of the portfolio. Among its largest positions are Broadcom (AVGO), JPMorgan Chase (JPM), and Exxon Mobil (XOM).
Vanguard Dividend Appreciation ETF (VIG)
The Vanguard Dividend Appreciation ETF (VIG) focuses on U.S. companies with a strong history of consistently increasing their dividends. To qualify, a company must have raised its dividend for at least 10 consecutive years and cannot be among the top 25% highest-yielding stocks in the eligible universe. This approach helps investors avoid yield traps—companies offering unusually high payouts that may not be sustainable.
Because of this disciplined approach, VIG appeals to investors looking for a more conservative dividend strategy that blends steady income with long-term capital growth. The fund tracks the S&P U.S. Dividend Growers Index.
VIG currently pays a quarterly dividend of $0.833 per share, giving it a 1.51% yield. The ETF holds 337 stocks and manages about $105.57 billion in assets. Its top holdings include AVGO, Apple (AAPL), and Microsoft (MSFT).
Conclusion
In conclusion, there is no single best choice among VYMI, VIG, and VYM. VYM may appeal to investors looking for higher current income, VIG is better suited for those focused on long-term dividend growth and stability, while VYMI offers international diversification with relatively higher global yields. The right ETF ultimately depends on whether your priority is income, growth, or broader geographic exposure.