For much of the past decade, investors have shown little interest in international dividend stocks.
The market’s preference for U.S. growth equities over that time put this group firmly out of favor
But 2025 ushered in a remarkable turnaround. The Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) returned 38%, more than doubling the 18% return of the Vanguard S&P 500 ETF. The rally hasn’t ended either.
It’s beating the S&P 500 by a 12% to 10% margin year to date, as of May 14. The case for international investing doesn’t appear to be over either. Why the Vanguard International High Dividend Yield ETF works right now Ultimately, share prices are driven by fundamental strength.