Get Revenue and Price Appreciation with VYMI

0

IThe market environment has undoubtedly been challenging for fixed income investors in the United States, prompting them to look to other avenues of yield, such as international markets.

This is especially the case given the prospect of rising interest rates, which can erode fixed income securities. Yields increased across the board, both short and long term.

Meanwhile, the US Federal Reserve may end up being more hawkish than capital markets had anticipated. The latest inflation data came in hotter than expected, causing yields to surge again.

“Expectations that the U.S. Federal Reserve could raise rates more aggressively than expected to counter rising inflation pushed yields higher while flattening the U.S. Treasury yield curve,” Reuters said. report said.

When it comes to getting more yield to stay ahead of inflation, fixed income investors don’t have to sacrifice performance or debt quality to get the most yield. higher. This is where an ETF like the Vanguard International High Dividend Yield ETF (VYMI) can benefit a fixed income investor’s portfolio.

VYMI offers an all-in-one option, allowing investors to navigate international debt markets without having to sift through large amounts of financial data to find the best opportunities. Plus, international investing has its own set of nuances, and VYMI can help you take that guesswork out.

Overall, VYMI:

  1. Seeks to replicate the performance of the FTSE All-World ex US High Dividend Yield Index.
  2. Provides a convenient way to gain exposure to international stocks which are expected to have above average dividend yields.
  3. Employs a passively managed sampling strategy.
  4. Presents a solid performance with a gain of 4% since the beginning of the year and a yield also 4%

A transfer of American assets to the international market?

There has been a general move towards adding international assets. While the United States has long been a fixture in providing investors around the world with a safe-haven alternative, this dynamic could change.

“From an allocation perspective, there’s been a huge migration into US (assets)” noted Mike Akins of ETF Action. “Now we are already seeing the first evidence that this trend is starting to change.”

“A lot of these international markets are better situated, with higher allocations to cyclical stocks,” Akins said. “It’s just a natural fit in the larger story of growing out of favor.”

For more news, insights and strategy visit the Fixed income channel.

Learn more at ETFtrends.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Share.

Comments are closed.