What currencies are in SCHY and VYMI?

Both ETFs hold international stocks priced in their local currencies — primarily euros (European stocks), Japanese yen (Japan), British pounds (UK), Swiss francs (Switzerland), Australian dollars (Australia), and various emerging market currencies in VYMI. These ETFs do not hedge currency risk — a strengthening US dollar reduces returns in USD terms (foreign currency income is worth fewer dollars), while a weakening dollar amplifies returns. In years when the dollar strengthens significantly (like 2022), international dividend ETFs can see USD returns significantly below local-currency returns due to currency headwinds.

Is international dividend investing subject to foreign withholding taxes?

Yes — most countries withhold a portion of dividends paid to foreign investors. Common withholding rates: France (28%), Germany (26.375%), Japan (15.315%), Switzerland (35% though often reduced by treaty), UK (0%), Australia (30% though often reduced), Canada (15%). For US investors holding international dividend ETFs in taxable accounts, foreign withholding taxes paid by the ETF can often be claimed as a Foreign Tax Credit on your US tax return. Holding international dividend ETFs in IRAs loses the Foreign Tax Credit benefit — making taxable accounts preferable for international dividend ETFs from a tax optimization perspective.

How much international dividend exposure should a US investor hold?

Most financial advisors suggest 20-30% international allocation for US investors seeking diversification, though practice varies widely. For dividend-focused investors adding international dividend ETFs, a common approach is 70-80% US dividend ETFs (SCHD, VYM) plus 20-30% international dividend ETFs (SCHY, VYMI). This matches global market cap weighting while maintaining dividend quality standards. More aggressive international overweighters argue current international valuations (lower P/E ratios than US markets) justify higher allocations. US-only dividend investors cite currency risk and US market familiarity as reasons to avoid international exposure entirely — a defensible but less diversified position.

brimindinvest.com / compare / schy-vs-vymiLIVE

SCHY

Schwab International Dividend Equity ETF · ETF / International Dividend Growth

$31.97

-1.36% this month

VERSUS

⟷

COMPARE

VYMI

Vanguard International High Dividend Yield ETF · ETF / International High Dividend Yield

$99.26

+1.90% this month

Scoreboard verdict

Across expense ratio, momentum, yield, fund size, risk

SCHY

1

VYMI

4

VYMI LEADS 4/5

Comparison scoreboard

VYMI LEADS 4/5

Exp. Ratio

SCHY 0.08%

VYMI ✓0.07%

1Y Return

SCHY +22.05%

VYMI ✓+31.61%

Div. Yield

SCHY 3.40%

VYMI ✓3.42%

AUM

SCHY $2.27B

VYMI ✓$20.46B

Beta

SCHY ✓0.55

VYMI 0.64

Metrics last refreshed: 6/20/2026

Quick take

SCHY vs VYMI Stock Comparison: AI Score, Valuation, Performance and Upside

SCHY and VYMI represent quality vs quantity approaches to international dividend investing. SCHY selects 100 best international dividend quality stocks with 10+ consecutive payment years — lower current yield but more sustainable income growth. VYMI holds 1,600+ international high-yield stocks without strict quality screening — higher current yield but with dividend cut risk from weaker issuers. SCHY suits quality-first income investors; VYMI suits maximum current international yield seekers.

SCHY vs VYMI — Schwab International Dividend Equity ETF (100 quality international dividend stocks with 10+ consecutive years at 0.14%, quality-screened for long-term dividend sustainability) versus Vanguard International High Dividend Yield ETF (1,600+ international high-yield dividend payers at 0.22%, capturing maximum current international dividend yield with broader diversification).

Live analysis · updated 6/20/2026

VYMI holds the edge across 4 of 5 key metrics in this comparison. VYMI has delivered stronger 1-year price return (+31.61% vs +22.05% for SCHY).

Normalized 1Y performance

SCHY

VYMI

Recent returns

SCHY

VYMI

Who should consider this stock?

SCHY may suit investors who:

→want SCHD's quality-first philosophy applied to international markets — 10+ consecutive dividend year and quality factor screening for sustainable international income
→prioritize dividend growth over maximum current yield — SCHY's quality holdings grow dividends annually, compounding income from international equities over time
→prefer concentrated 100-stock quality portfolio over broad 1,600+ stock index — higher conviction in best international dividend payers vs all dividend payers
→are comfortable with lower current yield (3.5-5%) vs VYMI in exchange for better dividend sustainability and quality characteristics

VYMI may suit investors who:

→prioritize maximum current international income — VYMI's broader yield capture delivers higher near-term distributions than SCHY's quality filtering allows
→want broader emerging market dividend exposure — VYMI includes higher-yielding Brazilian, Chinese, and other emerging market dividend payers excluded by SCHY
→prefer broad 1,600+ stock diversification reducing single-stock risk vs SCHY's concentrated 100-stock quality portfolio
→use VYMI as maximum international income complement to quality domestic dividend ETFs (SCHD) in a dividend portfolio

Performance & AI score

Metric	SCHY	VYMI
ETF score	62.0	85.0
Latest close	$31.97	$99.26
1M return	-1.36%	+1.90%
6M return	+9.46%	+14.85%
1Y return	+22.05%	+31.61%

$10,000 invested — hypothetical growth (dividends reinvested)

How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?

Period	SCHY	VYMI
1Y ago	$12.69K (+26.9%) started 2025-06-18	$13.89K (+38.9%) started 2025-06-18
5Y ago	$18.25K (+82.5%) started 2021-06-18	$24.19K (+141.9%) started 2021-06-18
10Y ago	$18.64K (+86.4%) started 2021-04-29	$46.06K (+360.6%) started 2016-06-20

Hypothetical — past performance does not guarantee future results.

Fund characteristics

Metric	SCHY	VYMI
Expense ratio	0.08%	0.07%
Total assets (AUM)	$2.27B	$20.46B
Dividend yield	3.40%	3.42%
Trailing P/E	15.23	14.02
Beta	0.55	0.64
52-week change	22.05%	31.61%

Risk & fund metrics

Metric	SCHY	VYMI
1Y return	+22.05%	+31.61%
6M return	+9.46%	+14.85%
1M return	-1.36%	+1.90%
1Y Sharpe ratio	1.34	1.81
Beta	0.55	0.64
Dividend yield	3.40%	3.42%
5Y CAGR	+8.40%	+13.04%

Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot

SCHY max drawdown9.11%

VYMI max drawdown10.14%

SCHY max wkly drop6.40%

VYMI max wkly drop6.42%

5Y risk snapshot

SCHY max drawdown24.03%

VYMI max drawdown24.05%

SCHY max wkly drop9.01%

VYMI max wkly drop10.94%

10Y risk snapshot

SCHY max drawdown24.03%

VYMI max drawdown40.00%

SCHY max wkly drop9.01%

VYMI max wkly drop21.40%

Performance metrics by period

Period	Metric	SCHY	VYMI
1Y	Growth	+22.05%	+31.61%
	CAGR	+22.07%	+31.64%
	Sharpe ratio	1.34	1.81
	Max drawdown	9.11%	10.14%
	Max daily drop	2.79%	3.05%
	Max wkly drop	6.40%	6.42%
5Y	Growth	+49.65%	+84.52%
	CAGR	+8.40%	+13.04%
	Sharpe ratio	0.34	0.60
	Max drawdown	24.03%	24.05%
	Max daily drop	4.93%	6.27%
	Max wkly drop	9.01%	10.94%
10Y	Growth	+52.87%	+176.97%
	CAGR	+8.61%	+10.73%
	Sharpe ratio	0.35	0.42
	Max drawdown	24.03%	40.00%
	Max daily drop	4.93%	11.02%
	Max wkly drop	9.01%	21.40%

Fund overview

Category	SCHY	VYMI
Fund name	Schwab International Dividend Equity ETF	Vanguard International High Dividend Yield Index Fund ETF Shares
Type	ETF	ETF
Expense ratio	0.08%	0.07%
Total assets (AUM)	$2.27B	$20.46B
Dividend yield	3.40%	3.42%

SCHY strengths

→10+ consecutive dividend year requirement applies globally: SCHY's stringent dividend history screen eliminates international companies with unsustainable payouts or dividend cut histories
→Quality factor screening matching SCHD's methodology: cash flow to debt and return on equity screens select financially healthy international businesses with durable income
→More concentrated quality: 100 holdings vs VYMI's 1,600+ — higher conviction in best international dividend payers rather than broad cap-weighted dividend selection

VYMI strengths

→Higher current yield than SCHY: VYMI's yield-focused index without strict quality screens captures higher-yielding international stocks — attractive for maximum near-term income
→1,600+ holdings: much broader diversification than SCHY's 100 holdings — reduced single-stock risk through index breadth
→Emerging market high-yield inclusion: VYMI includes higher-yielding dividend payers from Brazil, China, and other emerging markets excluded by SCHY's consecutive dividend requirement

Risks to watch — SCHY

→Concentrated 100-holding portfolio creates more single-stock risk: SCHY's quality concentration means any single holding represents 1%+ of portfolio — underperformance of specific names has more impact
→Developed market tilt: 10+ consecutive dividend year requirement heavily favors established European and Japanese companies with stable business models — less emerging market high-yield exposure
→Slightly lower current yield vs VYMI: quality screening and dividend growth emphasis means SCHY yields slightly less than VYMI's quantity-over-quality approach

Risks to watch — VYMI

→Less rigorous quality screening: VYMI's yield focus without consecutive dividend year requirement may include companies paying unsustainable dividends that get cut
→Lower dividend growth rate: high-yield companies often have limited capacity to grow dividends — VYMI's income may grow more slowly than SCHY's quality growers over time
→Higher expense ratio (0.22%) vs SCHY (0.14%): Vanguard charges more for VYMI than Schwab for SCHY — marginally reducing income retained by investors

Frequently asked questions

International companies — particularly European, Australian, and emerging market businesses — typically pay out a higher percentage of earnings as dividends than US companies. This reflects cultural and regulatory differences in capital allocation: European regulators and shareholders often require higher dividend payout ratios, and international companies have fewer share buyback traditions. Additionally, international markets have more value-sector weight (banks, utilities, materials, energy) that typically pay higher dividends than US tech-heavy sectors. The result: international dividend ETFs like SCHY and VYMI yield 3-6% vs US market averages of 1.5-2%.

AI Prediction SignalNext 5 trading days

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SCHY

+2.8%BUY

VYMI

+1.1%HOLD

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