Vanguard research indicates that international stocks in developed markets are projected to yield higher returns than U.S. stocks, including U.S. large-cap and growth stocks, over the next 10 years. The analysis highlights the Vanguard International High Dividend Yield ETF (VYMI) as a potential investment to capitalize on this trend.

VYMI, which primarily holds stocks from developed markets like Canada, Japan, and Western Europe, has outperformed the S&P 500 index over the past five years. The ETF focuses on value stocks in sectors such as pharmaceuticals, financials, and energy, rather than a tech-heavy portfolio. It holds 1,565 stocks from 45 countries, with 44% invested in European stocks and 23.7% in Pacific stocks. The fund's trailing 12-month dividend yield is 3.68%, and its price-to-earnings (P/E) ratio of 14.7 represents a significant discount compared to the S&P 500's 25.2.