Vanguard International High Dividend Yield ETF (VYMI) Covered Calls

The Vanguard International High Dividend Yield ETF is an exchange-traded fund that tracks the performance of the FTSE All-World ex US High Dividend Yield Index. The fund offers exposure to large- and mid-cap companies in developed and emerging markets, excluding the United States, that are forecast to have above-average dividend yields. By utilizing a passively managed sampling strategy, the fund provides a diversified, low-cost way to capture international income and value-oriented growth.

You can sell covered calls on Vanguard International High Dividend Yield ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for VYMI (prices last updated Fri 4:16 PM ET):

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Vanguard International High Dividend Yield ETF (VYMI) is a cost-efficient investment vehicle designed for investors seeking high current income from equities outside the United States. Managed by Vanguard, the fund provides broad exposure to hundreds of dividend-paying companies across both developed and emerging international economies.

Investment Strategy and Holdings

The fund employs a passive indexing approach to track the FTSE All-World ex US High Dividend Yield Index. As of early 2026, its portfolio is diversified across more than 1,500 stocks, with a heavy tilt toward the Financials, Healthcare, and Energy sectors. Top holdings include global industry leaders that trade as optionable ADRs on major U.S. exchanges, such as HSBC Holdings, Novartis, Toyota Motor, Shell PLC, and Royal Bank of Canada. This broad selection helps mitigate the risk of dividend cuts from any single firm or country.

Competitive Landscape

In the high-yield international space, the fund is a primary choice for investors due to its ultra-low expense ratio. It competes directly with the iShares International Select Dividend ETF and the Schwab International Dividend Equity ETF. Within the Vanguard family, it serves as the international counterpart to the Vanguard High Dividend Yield ETF, which focuses on U.S. markets. Other notable peers include the iShares MSCI EAFE Value ETF. All these ETFs are highly liquid and feature active options markets for hedging or additional income generation.

Strategic Outlook and Performance

The outlook for the fund is tied to the relative performance of international value stocks compared to U.S. growth equities. As global economies face evolving interest rate cycles and varying levels of inflation, high-dividend payers often act as a stabilizer for diversified portfolios. The fund geographical reach—including significant exposure to Japan, the United Kingdom, and Switzerland—allows it to benefit from regional economic strengths and currency fluctuations. Innovation within the fund is centered on Vanguard’s rigorous sampling techniques, which ensure high correlation with the underlying index while minimizing transaction costs.

Management maintains a commitment to full investment, capturing the total return of the international dividend market. For long-term shareholders, the fund offers a dual-benefit of high quarterly distributions and potential capital appreciation from undervalued international markets. By focusing on firms with sustainable payout ratios, the fund aims to provide a resilient income stream regardless of short-term volatility in the broader technology or growth sectors. This disciplined, low-cost approach ensures it remains a cornerstone for income-focused asset allocation strategies.

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