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Vanguard International High Dividend Yield ETF Should Benefit From An Eventual Rebound In The Global Economy

Published Fri, 25 Oct 2019 10:15:19 -0400 on Seeking Alpha

ETF Overview
Vanguard International High Dividend Yield ETF (Nasdaq: VYMI) focuses on quality international high-yield stocks and weights them by their market capitalization. The fund selects stocks from large and mid-cap stocks in the FTSE All-World ex-U.S. Index. VYMI has a diversified portfolio with no single stock consisting over 2.5% of its total portfolio. The fund has a high exposure to cyclical sectors and may benefit from an eventual rebound in the global economy. The fund’s price may also appreciate thanks to a weakening U.S. dollar. Therefore, we think VYMI is a good investment choice for investors seeking both capital appreciation and dividend income.
Data by YCharts
Fund Analysis
A diversified portfolio of over 1,000 stocks with exposure to large-cap stocks.
VYMI’s portfolio currently includes about 1,000 stocks. The fund selects stocks from the FTSE All-World ex. U.S. High Dividend Yield Index and ranks them by their expected dividend yield in the next 12 months. The first half of these stocks are selected and the portfolio is constructed and weighted by the market capitalizations of these selected stocks. This approach is advantageous as the fund will have higher exposure to large-cap stocks. As can be seen from the table below, large-cap stocks represent about 81.5% of the total portfolio. As we know, large-cap stocks tend to be in a better position financially than smaller-cap stocks. Therefore, the likelihood of dividend cuts will be... Read more