ETF Comparison: Vanguard International Dividend Appreciation ETF (VIGI) Versus Vanguard International High Dividend Yield ETF (VYMI)

VIGI vs VYMI: Cost of Ownership

As you’d expect from Vanguard, both VIGI and VYMI are relatively affordable. That said, they’re not quite as cheap as broad market cap–weighted ETFs, which can go as low as 0.03–0.06% these days.

VIGI

charges an expense ratio of 0.10%, while VYMI is slightly higher at 0.17%. On a $10,000 investment, that’s the difference between paying $10 and $17 annually in fees.

On the trading side, implicit costs are modest for both. VIGI has an average 30-day median bid-ask spread of 0.102%, while VYMI

is slightly wider at 0.115%.

That’s not unexpected given that international stocks are generally less liquid than domestic ones, and that reduced liquidity carries over to the ETFs that hold them.

Verdict: Add it all up, and VIGI is the cheaper ETF to trade and own.

VIGI vs VYMI: Methodology and Holdings

This is where the two ETFs sharply diverge, both in how they select their holdings and what ends up in the portfolio.

Starting with VIGI, it tracks the S&P Global Ex-U.S. Dividend Growers Index. The fund pulls from developed and emerging markets, screening for companies that have grown their dividends for at least seven consecutive years. REITs are excluded. After that, it ranks the remaining stocks by yield and removes the top 25% to avoid potential yield traps. What’s left is market cap weighted, with individual positions capped at 4%.

VYMI takes a more straightforward approach. It tracks the FTSE All-World ex U.S. High Dividend Yield Index, which selects the top 50% of stocks in its universe based on forecasted 12-month yield, again excluding REITs. Those picks are then market cap weighted without additional screening. It’s a pure high-yield screen, simple and mechanical.

As a result, VYMI clearly delivers the higher yield—4.49% versus VIGI’s 1.98%. Looking at geographic exposure, both funds have Japan as their largest country weight, but VIGI allocates nearly double the weight there. Switzerland and Canada are also notable in VIGI’s top allocations.

Sector-wise, VYMI

skews heavily toward financials, while VIGI spreads its weight more evenly across technology, healthcare, and industrials.

VIGI is also significantly more concentrated. It holds 323 stocks compared to 1,432 in VYMI. The top 15 holdings in VIGI

make up 45.07% of the fund, while the same top group accounts for just 19.24% in VYMI.

Verdict: This really comes down to whether you prefer dividend growth or high yield. Personally, I lean toward VIGI—the 324 holdings are more than sufficient, and its sector balance feels more stable. But if yield is your top priority, VYMI delivers more of it while still offering broad diversification.

VIGI vs VYMI: Risk and Return

Over the short term, whether you’re looking at the past three years, one year, or just year-to-date. VYMI has soundly outperformed VIGI and has also attracted significantly more investor inflows. The higher yield has made it a more appealing option in recent market conditions.

From a risk perspective, both ETFs have shown similar volatility profiles over these same timeframes. Their three-year, one-year, and year-to-date volatility levels and maximum drawdowns were comparable. However, VYMI’s drawdowns tended to be shorter in length, with faster recoveries, suggesting a more responsive rebound when markets corrected.

Looking at the full backtest from March 2, 2016, through April 21, 2025, VYMI also came out ahead in total return, posting a compound annual growth rate (CAGR) of 7.7% versus 6.4% for VIGI. But after adjusting for risk, the performance gap narrows considerably, with a Sharpe ratio of 0.41 for VIGI versus 0.42 for VYMI.

Verdict: VYMI takes the win overall. It has outperformed across most timeframes and continues to benefit from stronger exposure to the value factor, which has supported international equities lately. VIGI, by contrast, leans more toward the quality factor, making it a solid alternative for those who prefer stability—but in this matchup, VYMI has the edge.

This article is for informational purposes only and does not in any way constitute investment advice. The author may express their own opinions, which may not represent the opinions of ETF Central or its affiliated partners. It is essential that you seek advice from a registered financial professional prior to making any investment decisions.