Vanguard International High Dividend Yield Index Fund VYMI

ISInvesting Simplified - Professor G18d ago

BULL$VYMILong-termValuation

foreign tax credit requires taxable placement to recoup withholding.

VMI international dividend ETF exposure should be held in taxable so foreign tax credits can offset withheld dividend taxes.

Foreign dividends often face withholding before reaching the investor, and the IRS foreign tax credit can recapture much of that drag. The credit only works in taxable accounts; inside Roth or traditional IRA the withholding is permanently lost.