Highest Ever for This International Stock ETF -- But Analysts Say It Has Room to Run

Trading near its all-time high after an 18% gain in 2025, the Vanguard International High Dividend Yield ETF (VYMI) still presents a compelling case for long-term investors, with analysts forecasting a nearly 9% near-term upside. Despite its strong performance, VYMI is deemed attractively valued, exhibiting significantly lower P/E, P/B, and PEG ratios compared to its U.S. counterpart, VYM. The ETF provides diversified exposure to over 1,500 international high-dividend stocks with a low 0.17% expense ratio, though investors should account for inherent international risks such as tariffs and currency volatility.

Analysis

The Vanguard International High Dividend Yield ETF (VYMI) is currently trading near its all-time high, having registered an 18% gain year-to-date in 2025, buoyed by a favorable environment for international equities and abating trade tensions. Despite this strong performance, Wall Street analyst consensus projects further near-term upside of approximately 9%. The core investment thesis rests on a significant valuation discount compared to its U.S. counterpart, the Vanguard High Dividend Yield ETF (VYM). Specifically, VYMI exhibits a P/E ratio of 12.0 versus VYM's 19.8, a P/B ratio of 1.4x versus 2.9x, and a superior earnings growth rate of 13.3% compared to 10.8%. This combination results in a highly attractive PEG ratio of 0.90, suggesting undervaluation relative to its growth prospects, especially when contrasted with VYM's 1.83. The ETF provides diversified exposure to over 1,500 international stocks with a 4.2% dividend yield and a low 0.17% expense ratio, though it carries inherent risks associated with international investing, including currency fluctuations, tariff policies, and country-specific political factors.

Key Decisions for Investors

• Investors seeking international exposure may find VYMI attractive for its compelling valuation, as its P/E, P/B, and PEG ratios are substantially lower than its U.S. equivalent despite its recent price appreciation.
• For income-focused portfolios, the ETF's 4.2% dividend yield, combined with a superior 13.3% earnings growth rate, presents a dual opportunity for both capital returns and long-term growth.
• While analyst targets suggest a 9% near-term upside, it is critical to monitor international risks such as exchange rate volatility and geopolitical shifts, as these factors could impact returns and were cited as recent catalysts.