Quick Read
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VYMI beat VYM by ~18 points over five years and generated $1,346 more cash on a $100,000 position over the trailing twelve months.
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VYM leads by 25 points over ten years, meaning VYMI's recent outperformance is a reversal, not an established long-term pattern.
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Switching from VYM to VYMI inside an IRA triggers no tax, but selling in a taxable account can realize capital gains tax.
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The Vanguard High Dividend Yield ETF( NYSEARCA:VYM ) puts large American dividend payers into one low-maintenance fund. That simplicity is why so many income portfolios use it as a core holding. VYM rose 72.81% over five years. Its sister, the Vanguard International High Dividend Yield ETF( NASDAQ:VYMI ), applies the same high-yield idea to companies outside the United States.
It gained 90.61% over the same stretch on a total return basis, beating VYM by 17.8 points. Over the trailing twelve months, a $100,000 stake in VYMI collected $3,679.56, compared with $2,333.95 from the domestic fund.
VYMI Pays More Cash on an Identical $100,000 Stake
Using prices recorded after the close on October 5, 2025, VYM traded at $157.48 and VYMI at $101.11. Because of that price gap, $100,000 buys 635 shares of VYM but 989 shares of VYMI. Admittedly, that price difference makes per-share distribution comparisons somewhat misleading. VYM's latest quarterly payout of $0.8869 per share is higher than VYMI's $0.817.
That said, measure both on the same basis and the result reverses. VYMI's most recent quarter paid $808.03 on that position, compared with $563.18 from VYM. In our view, dollars on an identical position give a fair comparison. Annualizing current payouts projects $3,232.12 from VYMI and $2,252.73 from VYM. However, those figures are simple projections, and the payouts could change.
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Why VYMI's Quarterly Payments Swing So Much
VYMI's latest distribution of $0.817 per share came in far below the prior quarter's $1.2569. To a VYM holder used to regular payments, that drop looks alarming. The cause is how companies abroad pay their dividends.
Many companies in Europe, Japan and Australia pay dividends once or twice a year instead of in four even installments, and those payments bunch up in certain seasons. A fund holding such companies passes that irregular payment pattern straight through to its shareholders. The swing reflects the payment calendar of the underlying holdings. Still, a reader who needs even, predictable quarterly income will find VYM far more regular.
VYMI Also Leads Over Shorter Periods
Year-to-date, VYMI has risen 15.56% against 11.68% for VYM, a 3.88-point lead. Over one year, the lead is 9.1 points, with VYMI up 23.08% and VYM up 13.98%. Because VYMI leads over all three periods, the five-year advantage comes from more than one strong burst.
Over a Decade, VYM Leads by 25 Points
Over ten years, the result reverses. VYM rose 197.26% over the decade, and VYMI gained 172.26%, which leaves the domestic fund 25 points ahead.
International dividend stocks trailed American ones over the full decade. VYMI's lead is still relatively recent. A reader who projects the last five years forward is counting on a reversal to continue, and that is a much weaker basis than an established pattern. No one can promise the current cycle will last indefinitely.
Choosing VYMI Means Taking On Different Risks
Owning VYMI adds currency exposure. When the dollar gains, foreign share prices and dividends are worth fewer dollars, and a weaker dollar works the other way. VYMI also bears foreign political and regulatory risk that VYM avoids. Foreign governments often withhold tax on dividends. In a taxable account, you can usually recover some of that through the foreign tax credit, but inside an IRA it is lost.
VYM suits investors who want regular quarterly income, U.S. dollar holdings, and the stronger ten-year record. VYMI suits investors who want more income per dollar invested and exposure beyond U.S. stocks, and who can accept uneven payments and currency swings.
How to Switch Without a Surprise Tax Bill
Inside an IRA or 401(k), moving from VYM to VYMI triggers no tax. In a taxable account, selling VYM can realize capital gains on years of price appreciation, so check your cost basis first. Some investors instead direct new contributions and VYM's distributions into VYMI. That establishes an international position without a sale, and VYM keeps providing the regular payments.
Where the Recent and Long-Term Records Split
VYMI holds the recent edge. It leads over the year-to-date, one-year, and five-year periods, and it pays more cash on an identical basis. VYM still owns the ten-year record, so VYMI functions as a complement that brings more income and wider geographic reach. It is a weaker choice as a full replacement for a fund that has led for most of the past decade.
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