Ex-U.S. developed market dividend payers often feature larger yields than their U.S. counterparts, an assertion proven by comparing large- and mega-cap dividend stocks from familiar dividend sectors such as consumer staples, energy, financial services and telecommunications.

The Vanguard International High Dividend Yield ETF (NasdaqGM: VYMI) helps investors tap a basket of ex-US dividend stocks. An easy way of looking at the Vanguard International High Dividend Yield ETF is that it is the international answer to the wildly popular Vanguard High Dividend Yield ETF (NYSEArca: VYM), one of the largest U.S. dividend ETFs.

VYMI β€œis a reasonable value strategy that effectively diversifies stock-specific risk. It screens for high-yield stocks and weights holdings by market capitalization, which tilts the portfolio toward large, stable firms. But its track record is short, which limits its Morningstar Analyst Rating to Bronze,” said Morningstar in a recent note.

Low interest rates in the U.S. have sent investors flocking to dividend stocks and exchange traded funds in recent years. With central banks throughout the developed world paring rates and engaging in monetary easing, government bond yields are falling, giving investors good reason to consider international dividend ETFs.

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