README

Purpose

This research documents international and global dividend-focused ETFs that provide income from companies outside the United States, serving as alternatives or complements to US-focused dividend ETFs like Vanguard Dividend Appreciation (VYM) and Schwab US Dividend Equity (SCHD).

Key Findings

Top International Dividend ETFs for 2025

Yes, there are several excellent international and global dividend ETFs similar to VYM and SCHD:

1. Schwab International Dividend Equity ETF (SCHY)

The international cousin of SCHD - follows the same quality-focused process for overseas stocks
Expense Ratio: 0.08% (8 basis points) - extremely low cost
Dividend Yield: ~3.62%
Holdings: ~100 stocks (concentrated, quality-focused)
Rating: Morningstar Silver
Focus: High-quality dividend payers with 10+ consecutive years of dividend payments
Key Features:
- Screens for dividend quality based on four attributes
- Focuses on financial strength and lower volatility
- More sustainable dividends with lower volatility (1.99%)
- Better for dividend growth and stability
Geographic Exposure: UK, Australia, France, Switzerland, Italy, Japan, Germany
Top Sectors: Consumer staples, financials, industrials, communication services, healthcare
2025 YTD Return: 26.45%

2. Vanguard International High Dividend Yield ETF (VYMI)

Expense Ratio: 0.22% (22 basis points)
Dividend Yield: 4.32% - 4.85% (highest of the major options)
Holdings: 1,300-1,500+ stocks (broad diversification)
Rating: Morningstar Silver
Focus: Higher-yielding international stocks (top 50% by yield)
Key Features:
- Market-cap weighted to avoid value traps
- Very broad diversification reduces single-stock risk
- Better for higher current income
- Portfolio P/E ratio: ~11x (vs US market at 37x)
- Historical average annual returns: ~8%
- Higher volatility (2.85%)
2025 YTD Return: 29.95%
40%+ allocation to financial services sector

3. Vanguard International Dividend Appreciation ETF (VIGI)

Expense Ratio: 0.15% (15 basis points)
Dividend Yield: ~1.83% - 1.91% (lower yield, growth-focused)
Rating: Morningstar Gold
Focus: International dividend growth
Index: S&P Global Ex-U.S. Dividend Growers Index
Key Features:
- Targets companies with 7+ consecutive years of dividend increases
- Excludes highest-yielding stocks to avoid distressed companies
- Includes both developed and emerging markets
- Persistent dividend payers like SAP and Infosys
- Has outperformed broader foreign stock market in recent years
- Quarterly dividend distribution
2025 YTD Return: ~16%

4. Vanguard Total International Stock ETF (VXUS)

Expense Ratio: 0.05% (5 basis points) - lowest cost
Rating: Morningstar Gold
Holdings: 8,000+ companies (total international market)
Key Features:
- Not dividend-focused but 84% of holdings paid dividends in 2024
- Broad market exposure: large-, mid-, and small-cap
- Both developed and emerging markets
- Lower dividend yield but broadest diversification

Other Notable International Dividend ETFs

5. First Trust STOXX European Select Dividend Index Fund (FDD)

Expense Ratio: 0.59%
Dividend Yield: 5.79%
2025 YTD Return: ~36%
Focus: European dividend stocks

6. iShares International Select Dividend ETF (IDV)

Expense Ratio: 0.49%
Dividend Yield: 5.30%
Holdings: 100 stocks
2025 YTD Return: >26%
Focus: Developed markets with consistent dividend records

7. WisdomTree DEFA Equity Income Fund (DTH)

Expense Ratio: 0.58%
Dividend Yield: 4.30%
Holdings: ~600 stocks
2025 YTD Return: 22.4%

8. SPDR S&P International Dividend ETF (DWX)

Expense Ratio: 0.45% (lowest of specialty funds)
Dividend Yield: 3.68%
2025 YTD Return: ~21%

9. iShares International Quality Factor ETF (IQLT)

Rating: Morningstar Silver
Focus: High-quality stocks (not dividend-specific)
Screening Criteria: Highest profitability, lowest debt ratios
Geographic Focus: Foreign developed markets

Comparison: SCHY vs VYMI vs VXUS

Feature	SCHY	VYMI	VXUS
Expense Ratio	0.14%	0.22%	0.05%
Dividend Yield	~3.62%	~4.32-4.85%	Lower
Holdings	~100	1,300-1,500+	8,000+
Focus	Quality & growth	High yield	Total market
Volatility	Lower (1.99%)	Higher (2.85%)	Medium
2025 YTD Return	26.45%	29.95%	N/A
Strategy	Concentrated quality	Broad high-yield	Comprehensive market
Morningstar Rating	Silver	Silver	Gold

Which to Choose?

For dividend quality and stability: SCHY (international version of SCHD)
For highest current income: VYMI (4.85% yield)
For broadest diversification: VXUS (8,000+ holdings)
For dividend growth: VIGI (7+ years of consecutive increases)
For lowest cost: VXUS (0.05%) or SCHY (0.08%)

Market Context for 2025

International stocks are performing strongly in 2025, making these funds particularly attractive
US market trades at premium valuations (37x earnings) vs international (11x earnings for VYMI)
International dividend ETFs provide geographic diversification from US-heavy portfolios
Lower expense ratios generally preferred (aim for under 0.50%)

Key Takeaways

SCHY is the direct international equivalent of SCHD - same quality-focused methodology applied to non-US stocks
VYMI offers the highest yield (4.85%) with broad diversification (1,500+ holdings)
Multiple options exist across different yield levels, expense ratios, and diversification approaches
International dividend stocks are attractive in 2025 due to strong performance and reasonable valuations
Lower volatility options (SCHY) vs higher yield options (VYMI) allow investors to match risk tolerance

Sources

Social Security Retirement - Retirement income planning context