What are the key differences between VIGI and VYMI?

The key differences between Vanguard International Dividend Appreciation ETF (VIGI) and Vanguard International High Dividend Yield ETF (VYMI) are primarily centered around their investment strategies, dividend yields, and performance characteristics: 1. **Investment Strategy**: - **VIGI** focuses on international stocks with a strong track record of increasing dividends over 10 consecutive years. It aims to capture the growth of these companies' dividends and capital appreciation. - **VYMI**, on the other hand, targets non-U.S. stocks with above-average dividend yields, indicating a broader focus on high dividend-paying international stocks. 2. **Dividend Yield**: - **VIGI** offers a lower trailing 12-month dividend yield of 1.82% as of July 1, 2025, compared to **VYMI’s** 4.15% yield on the same date. - VYMI’s higher yield is attributed to its investment focus on high dividend yield stocks, which may include those with higher dividend payments. 3. **Performance and Risk**: - **VIGI** has been criticized for disappointing total returns, which may be a concern for investors prioritizing capital appreciation. - **VYMI** has a stronger recent track record for dividend yields, which could be attractive for income-focused investors. However, its higher yield may also indicate a higher risk profile due to its focus on high dividend yield stocks. 4. **Expense Ratios**: - Both ETFs have low expense ratios, with **VIGI** at 0.10% and **VYMI** at 0.17%. VYMI’s slightly higher expense ratio may be justified by its higher dividend yield and investment strategy. 5. **Asset Size and Market Presence**: - **VIGI** has assets under management of $8.4 billion, making it a substantial player in its category. - **VYMI** has $10.95 billion in assets under management, indicating significant investor interest and market presence. In summary, **VIGI** is geared towards investors seeking a focus on international stocks with a strong dividend growth history, with an emphasis on capital appreciation. **VYMI**, with its higher dividend yield, may appeal to investors prioritizing income-focused investments, although it comes with a slightly higher risk profile and expense ratio.