Highest Ever for This International Stock ETF -- But Analysts Say It Has Room to Run

Core Viewpoint - The Vanguard International High Dividend Yield ETF (VYMI) is trading at an all-time high and has gained 18% in 2025, driven by favorable trade deals and tariff pauses [1][2]. Group 1: ETF Overview - VYMI invests in international companies with above-average dividend yields, tracking an index of over 1,500 stocks [5][6]. - The portfolio composition includes 44% European companies, 26% from the Asia-Pacific region, 21% from emerging markets, and 8% from North American companies [6]. Group 2: Notable Holdings - The ETF includes well-known companies such as Nestle, Roche Holding, Novartis, HSBC Holdings, Shell, Commonwealth Bank of Australia, Royal Bank of Canada, and Toyota [7][8][9]. Group 3: Investment Metrics - VYMI has a low annual expense ratio of 0.17%, which is favorable for a specialized international index fund [9]. - Key valuation metrics show VYMI has an average P/E ratio of 12.0, compared to 19.8 for its U.S. counterpart, the Vanguard High Dividend Yield ETF (VYM) [10][11]. - VYMI's earnings growth rate is 13.3%, higher than VYM's 10.8%, and its PEG ratio is 0.90, indicating attractive valuation [11]. Group 4: Long-term Investment Potential - Despite being at an all-time high, VYMI is considered not too expensive for long-term investment, with a significant valuation gap compared to U.S. stocks [12].