What does an expense ratio actually cover for these funds?

The expense ratio represents the annual fee deducted from the fund’s assets to cover management, administration and operational costs. For VYM, the expense ratio is 0.04%, while for VYMI it is 0.07%. This fee is taken out of the fund’s returns before investors see them, reducing the total yield available to shareholders. Lower expense ratios generally mean less drag on performance over time, assuming all other factors remain equal. Understanding this cost is crucial when comparing ETFs because it directly impacts net returns.

How do the dividend yields of VYM and VYMI differ?

VYM has a dividend yield of 2.31%, whereas VYMI offers a higher yield at 3.58%. This difference reflects the distinct underlying markets and companies each fund invests in. Generally, international markets may offer higher yields due to varying dividend payout policies and economic conditions. However, a higher yield isn't always better; it must be evaluated alongside growth potential and risk. Investors should look at the stability of the payments and the fund's overall strategy rather than focusing solely on the headline yield figure.

What geographic exposure does each ETF provide?

VYM primarily invests in large capitalisation value stocks located within the United States. In contrast, VYMI targets the international high dividend yield market, focusing on developed and emerging markets outside the US. This geographic distinction means the two funds respond differently to global economic events, currency fluctuations, and regional market cycles. Combining them in a portfolio would provide diversified exposure to both domestic and foreign equity markets, although an investor must assess how these distinct geographic risks align with their broader investment strategy and risk tolerance.

Are there any overlapping top holdings between VYM and VYMI?

Based on the available data, there are no shared top-10 holdings between VYM and VYMI. VYM’s top holdings include major US corporations like AVGO, JPM, and XOM. While specific top holdings for VYMI are currently listed as not available, the lack of overlap in the known top positions suggests the funds are quite distinct in their specific company selections. This low correlation at the holding level reinforces their different roles in a portfolio, offering separate avenues for income generation from their respective markets without duplication of key positions.

How does the inception date impact the history of these funds?

VYM has been in existence since 10 November 2006, while VYMI started trading on 25 February 2016. The longer track record of VYM provides a more extensive history for investors to analyse regarding performance through various market cycles. VYMI is a newer fund, which means it has less historical data but reflects more recent market strategies. Investors often look at long-term consistency, so the difference in inception dates means VYM offers a broader dataset for evaluating how the fund manages its portfolio over extended periods compared to the relatively newer VYMI.

What do the net assets tell us about these ETFs?

VYM holds net assets of $80.9 billion, significantly more than VYMI’s $21.7 billion. Larger net assets often correlate with higher liquidity, meaning it might be easier to buy or sell large blocks of shares without significantly moving the price. While both funds are well-capitalised, the substantial difference in size indicates that VYM is a more established and widely held vehicle. Liquidity is an important practical consideration for investors who may need to enter or exit positions quickly, though both funds are issued by Vanguard, a major provider of high-liquidity ETFs.

How do the categories distinguish the underlying strategies?

VYM is classified as a Large Value fund, targeting established US companies that typically trade at lower valuations relative to their fundamentals. VYMI falls under the Foreign Large Value category, applying similar value investing principles but to international markets. This categorisation highlights that while both seek value, their operational environments differ vastly due to geographic location. Understanding these categories helps investors recognise that the drivers of performance for VYM will be tied to US value factors, whereas VYMI will depend on international value trends and foreign market conditions.

What does the tracking index imply for these funds?

For both VYM and VYMI, the specific index tracked is listed as not available in the current dataset. Generally, an index-tracked ETF aims to replicate the performance of a specific benchmark. Without the explicit index name, investors should look to the fund provider's documentation to understand exactly what criteria were used to select constituents. Knowing the index is vital for assessing how closely the fund mirrors its intended market segment and for understanding the methodology behind its dividend yield and value characteristics, which defines its passive investment nature.

How does the fee difference affect long-term costs?

VYM charges 0.04% and VYMI charges 0.07%. The difference is 0.03 percentage points. Over long investment horizons, even small differences can compound. For example, on an investment of $10,000, the annual cost difference is $3 (0.03% of $10,000). While this seems minimal, it illustrates how cheaper funds retain more of their returns if performance is identical. Investors should consider this fee differential in the context of the potential benefits of each fund's unique exposure, rather than viewing the fee in isolation, ensuring they understand the total cost of ownership for their chosen strategy.

Why are sector weights listed as not available?

The provided data states that sector weights are not available for either VYM or VYMI. Sector weights are typically disclosed to help investors understand the concentration of their holdings in specific industries like financials, energy or healthcare. Without this data, it is difficult to assess diversification within the funds directly from these figures. Investors seeking this detail should consult the fund provider's official fact sheets or holdings reports, as understanding sector allocation is critical for ensuring the fund complements the rest of a diversified portfolio and doesn't introduce unintended concentration risks.

How are distributions typically handled in ETFs?

Both VYM and VYMI are designed to provide income, indicated by their respective dividend yields of 2.31% and 3.58%. ETFs usually collect dividends from their underlying holdings and distribute them to shareholders, often quarterly. The distribution amount can vary based on the actual dividends paid by the companies within the fund. Investors receive these cash payments unless they have enrolled in a dividend reinvestment plan (DRIP). It is important to understand that these distributions are a reflection of the income generated by the portfolio and not necessarily a direct measure of the fund's total performance.

What is the main difference in top holdings information?

VYM has its top 10 holdings explicitly listed, including major names like AVGO and JPM with specific weightings. Conversely, the top holdings for VYMI are noted as not available in the dataset. This disparity makes it easier to perform a quick top-down view of VYM's portfolio composition compared to VYMI. However, the fact that there are no shared top-10 holdings in the available list reinforces the idea that these funds serve different geographic markets and likely hold very different specific companies despite both focusing on value and dividends.

VYM vs VYMI

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

Compare VYM and VYMI to review fees, holdings, dividends and how each fund tracks its market. VYM focuses on large value stocks, while VYMI targets international high dividend yield. Explore the differences in expense ratios, net assets, yields and top holdings to understand each option. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

VYM

Metric

VYMI

0.04%

Expense Ratio

0.07%

2.31%

Dividend Yield

3.58%

$80.88B

Net Assets

$21.68B

613

Holdings

1,661

Nov 10, 2006

Inception Date

Feb 25, 2016

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Index Tracked

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Large Value

Fund Category

Foreign Large Value

VYM costs about $3.00 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

VYM

Pros

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Considerations

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VYMI

Pros

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Considerations

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About VYM and VYMI

VYM (VYM)

The Vanguard High Dividend Yield ETF is designed to provide investors with exposure to a broad range of high-dividend-paying stocks listed in the US. With a low expense ratio of 0.04% and over 600 holdings, the fund aims to deliver income while maintaining diversification. Its dividend yield sits at 2.31%, reflecting its focus on companies with strong payout traditions. This ETF suits those seeking a steady income stream as part of a long-term strategy, though values can rise and fall. Returns are not guaranteed. Always consider your personal circumstances before investing.

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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VYM vs VYMI

Fund Snapshot