VYMI or VXUS: Which International ETF Is Better for Investors?

Core Insights - International stocks have outperformed the S&P 500 index over the past year, prompting investor interest in international stock ETFs [1] - Two Vanguard ETFs, VXUS and VYMI, provide different strategies for investing in international stocks, with VYMI showing higher returns [2] Group 1: Vanguard Total International Stock ETF (VXUS) - VXUS offers broad exposure to 8,691 international stocks, including major semiconductor companies like Taiwan Semiconductor Manufacturing (3.2% of the fund) and ASML Holding (1.3%) [3] - The fund is diversified across developed markets in Europe (37.9%), the Pacific (26.4%), and North America (7.8%), with 26.6% in emerging markets [4] - VXUS has an expense ratio of 0.05%, making it a cost-effective option for investors looking to diversify outside U.S. stocks [4] Group 2: Vanguard International High Dividend Yield ETF (VYMI) - VYMI holds 1,535 stocks, focusing on companies with higher-than-average dividend yields, and has delivered average annual returns of 11.8% over the past 10 years [5] - The fund has less exposure to emerging markets (21.1%) compared to VXUS, but more exposure to Europe (43.6%) [6] - Top countries in VYMI include Japan (14.2%), the United Kingdom (11.4%), Canada (7.9%), Switzerland (7.3%), and Australia (6.7%) [6]