This is a global high-dividend ETF that tracks companies with high dividend yields across developed and emerging markets outside the US. It follows the FTSE All-World ex US High Dividend Yield Index and holds a large number of stocks on a market-cap-weighted basis.

It suits long-term investors who want to diversify their dividend income sources beyond the US.

It is a passively managed (index-tracking) ETF run by Vanguard.

The fund selects companies outside the US that are expected to have relatively high dividend yields going forward and holds them on a market-cap-weighted basis. It excludes certain classifications such as real estate REITs and broadly holds stocks from which dividends are expected, providing diversified high-dividend exposure with lower dependence on any single stock or country.

• Simultaneous diversification across developed and emerging markets outside the US
• Expense ratio lower than the category average

Assets under management (AUM) are $21.8B, and the total expense ratio is 0.07% per year.

Its fees are on the low side compared with similar ETFs in the same category, and broad diversification across many stocks helps reduce individual stock volatility.

Global dividend stocks are affected by exchange rates as well as by each country's interest rates and economic cycles, and there are periods when they move in a different direction from the US market. Recent trends show varying volatility depending on the time period.

Demand for overseas diversification to complement US-concentrated portfolios and demand for more diversified dividend income sources underpin the fund flows. Inflows and outflows can vary depending on exchange rates and global risk appetite.

Its strengths are a low expense ratio and global diversification outside the US, while its weaknesses are the volatility that comes from currency fluctuations and emerging market exposure.

DFAI, DFIC, and DFAX shown in the table are comparison targets in the same category of global stocks outside the US, while VIGI is an ETF focused on dividend growth outside the US, and IDV is an ETF that selects high-dividend stocks outside the US. In addition, you can split your domestic and international dividend exposure by pairing it with VYM, Vanguard's US high-dividend ETF, and if you want to invest broadly across non-US markets, you can also consider broad international core ETFs such as VEU and VXUS.

Here are the points to review before investing in VYMI. Because it is a global high-dividend ETF that invests outside the US, it is wise to check currency fluctuations, the mix of developed and emerging markets, and dividend sustainability before buying.

Currency fluctuations and emerging market exposure are the main drivers of short-term volatility. During a global economic slowdown, dividend cuts and price declines can occur together, so losses are possible even with diversification.

It is a suitable choice for long-term investors who want to diversify their dividend income sources beyond the US. If you want to run it alongside US high-dividend exposure, consider VYM, and if you want diversification across overseas markets as a whole, consider VEU and VXUS as well.