Core Viewpoint - The Vanguard International High Dividend Yield Index Fund ETF (VYMI) offers geographic diversification and a higher dividend yield of 3.72% compared to the S&P 500's 1.15% [1][9]. Dividend Yield and Safety - While there are international ETFs with higher yields, yield alone is not a sufficient reason to invest in an ETF [2]. - The ETF focuses on dividend durability and diversification, making it a reliable option for buy-and-hold investors [4]. - The fund avoids yield traps by filtering out companies that may struggle to maintain their dividends, absorbing only half of the dividend payers in its selection universe [5][6]. Market Exposure and Growth Potential - The ETF's methodology does not weight components by dividend yield but by market capitalization, enhancing safety by prioritizing larger companies capable of sustaining and growing dividends [6]. - European dividends have shown consistent growth, and this trend is expected to continue, while Japan is emerging as a strong market for dividend growth, with many companies projected to double their payouts in 2025 [7][9]. Diversification Benefits - The ETF includes 1,534 stocks, with no single stock exceeding 1.65% of the total, thereby limiting single-stock risk [12]. - The fund has a reasonable annual fee of 0.17%, equating to $17 on a $10,000 investment [12]. - The shift in market dynamics at the start of 2025 highlights the importance of international diversification, rewarding those who were prepared [10][11].