Published Mon, 22 Jul 2019 10:28:33 -0400 on Seeking Alpha
Dividend investors looking for international diversification should consider, including the Vanguard International High Dividend Yield ETF (VYMI) in their portfolios. This low-cost index ETF provides an easy, convenient, and cheap way to gain exposure to thousands of high-yield stocks across dozens of countries, significantly reducing portfolio risk and volatility for the vast majority of investors. VYMI is an outstanding investment opportunity and would be a welcome addition to any dividend investor's portfolio.
Benefits of International Diversification
I'am going to start with an explanation of the benefits of international diversification before taking a look at the fund itself.
Investors all around the globe tend to exhibit what is known as home-country bias, mostly investing in securities from their own countries. This is definitely the case for the average North American investor, so it is probably the case for many, if not most, of the readers here at Seeking Alpha:
In most cases, home-country bias is caused by structural asymmetries between investing in national and international securities. Investing in local markets tends to be very easy and cheap, while investing in foreign markets is usually significantly more difficult and expensive. Even something as simple as receiving a dividend payment can be subject to extra regulations and complications if the dividend comes from a foreign stock. For example, U.S. investors that buy... Read more