Core Viewpoint - The Vanguard High Dividend Yield ETF (VYM) is positioned to attract investors due to lower interest rates, making its high yield more appealing [1][2]. Group 1: Fund Overview - The Vanguard High Dividend Yield ETF holds over 500 stocks, many of which are part of the S&P 500, and offers yields significantly higher than the S&P 500 average of 1.14% [2]. - The fund's trailing dividend yield is 2.49%, which is more than double that of the S&P 500, indicating a strong income potential for investors [3]. - A $10,000 investment in the fund would have generated $249 in income over the past year [3]. Group 2: Investment Strategy - The ETF includes a diversified mix of sectors such as technology, healthcare, financial services, and consumer goods, similar to an index fund [3][4]. - The top holdings in the ETF include Broadcom, JPMorgan Chase, Walmart, Home Depot, and UnitedHealth Group, showcasing a blend of quality stocks [3][4]. Group 3: Risk and Return - While not designed to outperform the S&P 500, the VYM ETF provides a low-risk option for boosting passive income without the need to select individual stocks [7]. - The fund's expense ratio is minimal at 0.06%, which translates to a fee of $6 for every $1,000 invested, making it a cost-effective investment choice [6].

Core Insights - The Vanguard International High Dividend Yield ETF (VYMI) has reached an all-time high and is up nearly 20% in the first half of 2025 [1] - The ETF tracks the FTSE All-World ex US High Dividend Yield index, focusing on international stocks that pay above-average dividends [5] - Despite being at a peak, the ETF remains an attractive investment option compared to U.S. high-dividend counterparts [9] ETF Performance and Composition - The ETF has a dividend yield of approximately 4.1% and a low expense ratio of 0.17% [5] - The portfolio consists of about 1,550 stocks, with 44% in European companies, 26% in developed Asia-Pacific markets, and 21% in emerging markets [6] - The top holdings include well-known companies such as Nestle, Novartis, Toyota, Shell, and Royal Bank of Canada [7] Valuation Metrics - The average P/E ratio of the ETF is 12.0, with an earnings growth rate of 13.7% over the past five years, resulting in a PEG ratio of 0.88 [10] - In comparison, the U.S.-focused Vanguard High Dividend Yield ETF (VYM) has a higher average P/E of 19.1 and a PEG ratio of 1.79 [10] Investment Outlook - The Vanguard International High Dividend Yield ETF is considered to have a significant valuation gap compared to U.S. high-dividend stocks, making it a potentially good value [11] - The ETF has been a top-performing investment in 2025, and there is confidence in adding to the investment at current prices [12]