vymi vs. vxus

**VYMI** (Vanguard International High Dividend Yield ETF) and **VXUS** (Vanguard Total International Stock ETF) have different investment focuses and characteristics, making them suitable for different investor profiles: 1. **Investment Focus**: - **VYMI**: This ETF focuses on international high-dividend yield stocks. It seeks to capture stable income streams from companies with a history of paying dividends. - **VXUS**: In contrast, VXUS tracks the FTSE Global All Cap ex US Index and focuses on total international stock exposure, including both dividend-paying and non-dividend-focused companies. 2. **Sector Weightings**: - **VYMI**: VYMI has a significant sector weighting in financial services, which accounted for 42% of its asset weight as of the latest data. This indicates a strong focus on banks, insurance, and other financial institutions. - **VXUS**: VXUS, on the other hand, has a diversified sector weighting, with financial services representing only 23.3% of its asset weight. It has a broader exposure across various sectors, including technology, industrials, and consumer cyclical stocks. 3. **Geographical Distribution**: - **VYMI**: While VYMI offers international exposure, its holdings are primarily in developed markets, particularly Europe and Japan. - **VXUS**: VXUS, being a total international stock ETF, provides exposure to both developed and emerging markets, with a more balanced geographic distribution. 4. **Dividend Frequency**: - **VYMI**: VYMI distributes dividends quarterly. - **VXUS**: VXUS distributes dividends quarterly as well. 5. **Expense Ratio**: - **VYMI**: The expense ratio for VYMI is 0.17%, which is relatively low but higher than VXUS's 0.05%. - **VXUS**: VXUS's lower expense ratio makes it a more cost-effective option for investors seeking international exposure. 6. **Performance**: - **VYMI**: VYMI has a higher 1-year percentage change of 18.9% compared to VXUS's 14.98%. - **VXUS**: However, VXUS has a higher 3-year percentage change of 36.74% compared to VYMI's 43.06%. In conclusion, VYMI is better suited for investors seeking a high-dividend yield focus with a concentration in financial services and a quarterly dividend frequency. VXUS, with its broader international stock exposure and lower expense ratio, may be more appropriate for those looking for total international stock exposure with a focus on capital appreciation and lower fees.