International Dividend ETFs Top SCHD's Yield and Beat the S&P 500
Over the year through October 12, 2026, VYMI, IDV, and SCHY each had higher trailing yields than SCHD and outperformed an S&P 500 index fund. VYMI returned 24% and IDV offered the highest yield at 5.8%, while SCHD still returned 27% despite a lower 3.2% yield. The article warns that foreign tax credits are lost when these funds are held in an IRA, and currency moves can affect returns.
From October 9, 2025, to October 12, 2026, VYMI, IDV, and SCHY each delivered higher trailing yields than SCHD and outperformed IVV, the S&P 500 proxy. VYMI returned 24% with a 3.7% yield and 0.07% expense ratio; IDV returned 22%, yielded 5.8%, charged 0.5%, and held about $8.4 billion. SCHD returned 27% on a 3.2% yield.
VYMI tracks a market-cap-weighted FTSE index covering developed and emerging markets outside the U.S., excluding REITs. IDV follows a yield-weighted Dow Jones EPAC index with 119 holdings, including TotalEnergies and British American Tobacco, and leans toward Europe. Foreign tax credits are forfeited in an IRA, and currency fluctuations can alter returns.
Investors seeking income, especially retirees and retirement-account holders, may reconsider international dividend funds. Higher yields and returns could attract assets, but lost foreign tax credits in IRAs and currency swings may reduce realized benefits. Financial advisers and fund providers could face more questions about after-tax income and diversification. Broader markets may see greater interest in non-U.S. equities, though past performance does not guarantee future results.