What is the main difference between VXUS and VYMI?

VXUS, the Total International Stock Vanguard ETF, aims to provide broad exposure to the total international equity market. In contrast, VYMI, the Vanguard International High Dividend Yield ETF, focuses specifically on companies outside the United States that pay higher-than-average dividends. While both are Vanguard funds tracking non-US equities, their primary objectives differ: one prioritises comprehensive diversification across all market caps and styles, whereas the other targets income generation through a value-oriented, high-dividend screening process.

What does the expense ratio represent for these ETFs?

The expense ratio is the annual fee charged by a fund, expressed as a percentage of your investment. It covers the costs of managing the fund, such as trading fees and administrative expenses. For these funds, VXUS charges 0.05% per year, while VYMI charges 0.07%. This fee is deducted from the fund's assets, meaning it directly reduces the net return investors receive. A lower expense ratio generally means more of your potential market return stays in your pocket over time.

How do ETF dividends and distributions typically work?

Exchange-traded funds collect dividends and interest from the companies or securities they hold. These payments are usually aggregated and distributed to ETF shareholders at regular intervals, such as quarterly. The dividend yield provided in the fund data represents the annualised income payments relative to the current share price. For example, VYMI has a 3.58% yield, reflecting its focus on income-producing stocks, while VXUS yields 2.28%. Investors receive these distributions as cash unless they are set up for automatic reinvestment.

How do the dividend yields of VXUS and VYMI compare?

VYMI offers a dividend yield of 3.58%, which is notably higher than the 2.28% yield of VXUS. This difference aligns with their respective strategies. VYMI specifically screens for companies with high dividend payouts, aiming to generate robust income for yield-focused portfolios. VXUS, being a total market fund, includes all eligible companies regardless of their payout policy, resulting in a blended yield. Therefore, investors seeking higher current income might find VYMI’s yield profile more aligned with that specific metric.

What is the impact of the expense ratio difference over time?

While a 0.02% difference between VXUS (0.05%) and VYMI (0.07%) seems small, compounding effects can influence long-term net returns. On a $10,000 investment, VXUS would charge approximately $5 annually, whereas VYMI would charge $7. Over many years, consistently lower fees allow the remaining capital to compound more efficiently. However, this fee advantage is just one factor; the actual return depends significantly on the performance of the underlying international companies and whether the high-dividend strategy outperforms the broader market.

How do the fund categories of VXUS and VYMI differ?

VXUS is classified as a Foreign Large Blend fund, indicating it holds a mix of growth and value stocks across the broad international market. VYMI is categorised as Foreign Large Value, reflecting its focus on companies perceived to be undervalued or those that pay substantial dividends. The Blend category suggests VXUS captures the general market performance, while the Value category implies VYMI may have different risk and return characteristics, often tied to economic cycles where value stocks might outperform growth stocks.

Are the top holdings of VXUS and VYMI the same?

No, the top holdings of these funds differ significantly. Data indicates there are no shared top-10 holdings between VXUS and VYMI. This lack of overlap underscores their distinct strategies: VXUS tracks a broad total market index, while VYMI applies a high dividend yield screen. Consequently, the specific companies driving the performance of each fund are different, meaning investors are exposed to different segments of the international equity market through each ETF.

How does the market cap exposure differ between the funds?

VXUS provides comprehensive exposure to the total international equity markets, including both developed and emerging markets, across various capitalisation sizes. VYMI, however, focuses on mature, dividend-paying equities, often leaning towards large-cap value stocks. While both cover international markets, VXUS captures the broader spectrum of global economic growth, including smaller companies and growth-oriented firms, whereas VYMI concentrates on established companies with a history of distributing income.

What is the liquidity difference between VXUS and VYMI?

Liquidity refers to how easily an ETF can be bought or sold without significantly affecting its price. VXUS boasts $164.0 billion in net assets, guaranteeing high liquidity and typically tighter bid-ask spreads. VYMI holds $21.7 billion in assets. While VYMI maintains substantial liquidity, it is lower than that of the massive total-market fund VXUS. Higher asset base generally facilitates smoother trading, particularly for large transaction sizes.

Which fund has a longer track record in the market?

VXUS has a longer operating history. Its inception date is Jan 26, 2011. VYMI was launched later, with an inception date of Feb 25, 2016. This five-year difference means VXUS has experienced more complete market cycles since its launch. A longer track record can provide investors with more historical data on how the fund has performed during various economic conditions, such as bull and bear markets, compared to the newer fund.

Why are top holdings and sector weights not available for these funds?

For these specific ETFs, top holdings and sector weights are not available in the provided dataset. Usually, fund providers disclose this information periodically. Without these details, detailed portfolio analysis and precise assessment of current geographic or sector allocations are challenging for investors. This limitation requires investors to rely on the fund’s stated investment objective and broad category classifications, such as Foreign Large Blend or Value, to understand the general nature of the holdings.

What type of investing goal is associated with VYMI?

VYMI is typically associated with goal-oriented investing for income generation. Due to its superior 3.58% dividend yield and focus on high dividend strategies, it appeals to yield-focused portfolios. Investors often look at this fund to enhance cash flow from their international equity holdings. Its value orientation suggests it may suit those who prefer established companies with consistent payout policies over high-growth firms that might reinvest profits instead of distributing them.

VXUS vs VYMI

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare the Total International Stock Vanguard ETF (VXUS) and Vanguard International High Dividend Yield ETF (VYMI). This page outlines their expense ratios, holdings, dividends, and how each fund tracks its market. VXUS has a 0.05% expense ratio, while VYMI has a 0.07% expense ratio. Top holdings and sector weights are not available. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

VXUS

Metric

VYMI

0.05%

Expense Ratio

0.07%

2.28%

Dividend Yield

3.58%

$164.04B

Net Assets

$21.68B

8,860

Holdings

1,661

Jan 26, 2011

Inception Date

Feb 25, 2016

–

Index Tracked

–

Foreign Large Blend

Fund Category

Foreign Large Value

VXUS costs about $2.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

VXUS

Pros

VXUS offers broad exposure to total international equity markets, ensuring comprehensive global diversification.
VXUS features an ultra-low 0.05% expense ratio, minimising investment costs while maximising net returns.
VXUS boasts $164.0 billion in net assets, guaranteeing high liquidity and tight bid-ask spreads.

Considerations

VXUS records a modest 2.28% dividend yield, resulting in lower current income for investors.
VXUS lacks available top holdings and sector weights, making detailed portfolio analysis challenging for investors.
VXUS's foreign large blend category limits exposure to emerging market equity growth.

VYMI

Pros

VYMI generates a superior 3.58% dividend yield, providing robust income for yield-focused portfolios.
VYMI's international high dividend strategy delivers significant exposure to value and income segments.
VYMI maintains a low 0.07% expense ratio, supporting cost-effective income-focused investing.

Considerations

VYMI holds $21.7 billion in assets, resulting in lower liquidity compared to massive total-market funds.
VYMI's foreign large value classification increases concentration risk in mature, dividend-paying equities.
VYMI lacks disclosed top holdings and sector weights, preventing detailed portfolio transparency for investors.

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About VXUS and VYMI

VXUS (VXUS)

Vanguard Total International Stock ETF (VXUS) offers investors broad exposure to non‑US equities across developed and emerging markets. The fund tracks a global index that excludes the United States and holds thousands of stocks spanning large-, mid- and small-cap companies. It is structured as a passive, market‑capitalisation‑weighted ETF, which aims to replicate international equity market performance while keeping trading simplicity and diversification benefits. VXUS is typically unhedged to sterling or other home currencies, so returns can be affected by currency movements as well as underlying stock performance. Investors should note that, like all equity funds, values can fall as well as rise and past performance does not guarantee future results. This summary provides general, educational information and is not personalised investment advice; suitability depends on an individual’s circumstances, risk tolerance and investment horizon.

VYMI (VYMI)

The Vanguard International High Dividend Yield ETF offers a way to gain exposure to developed markets outside the United States, focusing specifically on companies with higher-than-average dividend yields. This exchange-traded fund holds a diversified basket of over 1,600 stocks, aiming to provide income potential from mature international businesses. With a very low expense ratio of 0.07%, it is designed for cost-conscious investors seeking broad diversification. While it provides a historic yield of approximately 3.58%, investors should remember that dividend payments are not guaranteed and can fluctuate. The fund's value can rise or fall with market conditions, and past performance does not ensure future results. It is an option for those interested in international equity markets, particularly within the foreign large value category, balancing the potential for income with global diversification benefits.

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VXUS vs VYMI

Fund Snapshot