The Vanguard International High Dividend Yield ETF (VYMI) has surged 41% since early 2025, significantly outpacing the S&P 500's 18% growth during the same period. This strong performance stems from VYMI's focus on international companies with above-average dividends. The ETF holds over 1,500 stocks across Europe, the Pacific, and emerging markets, offering investors diversification benefits.

VYMI's strategy of investing in both developed and emerging markets provides a balance of stability and growth potential. Its current dividend yield is approximately 3.4%, more than three times the S&P 500's yield. Top holdings include Roche, HSBC, and Nestle, indicating a focus on established, shareholder-friendly companies.

Investing in international ETFs like VYMI is a smart way to diversify portfolios. While a majority of investments are often in the U.S. market, international exposure helps hedge against domestic market fluctuations. The Motley Fool analysts have identified other investment opportunities that could produce monster returns in the coming years.

For investors, the key takeaway is the potential for strong income generation from VYMI, even if its growth slows down. Its dividend yield offers a compelling return compared to the broader market. However, investors should conduct thorough research and consider the broader market conditions before investing.