AVIV vs VYMI

Key Takeaways

• AVIV is an actively managed international large-cap value fund, while VYMI is a passive, index-tracking international high-dividend-yield fund — two different routes to international value and income exposure.
• VYMI is dramatically cheaper at a 0.07% expense ratio versus 0.25% for AVIV, and it holds roughly 1,560 stocks versus about 600 for AVIV.
• Both funds lean heavily into financials and developed non-U.S. markets such as Japan and the United Kingdom, but AVIV applies a deeper, profitability-adjusted value tilt, while VYMI screens purely on dividend yield.
• AVIV has shown stronger recent performance, benefiting from a concentrated value-and-momentum tilt, whereas VYMI offers broader diversification and a higher income orientation.
• Tickeron AI Verdict: AVIV is the current favored ticker, reflecting stronger trend consistency, active factor positioning, and relative momentum.

Introduction

Investors seeking exposure beyond U.S. borders often turn to international value and dividend strategies, yet two funds in this space can look similar while behaving quite differently. AVIV and VYMI both target developed-market, large-cap equities with a value bias, making them natural candidates for the same portfolio slot. They do not compete identically, however: one is an actively managed factor strategy, while the other is a low-cost, index-based dividend fund. This ETF comparison examines their structural differences, sector exposure, cost profiles, and relative positioning to help investors decide which approach fits the current market environment.

Avantis International Large Cap Value ETF (AVIV) Overview

AVIV, managed by Avantis Investors, is an actively managed fund that invests in non-U.S. developed-market large-cap companies trading at lower prices relative to their book values and earnings. The strategy blends a value screen with profitability and momentum signals, effectively tilting toward cheaper, higher-quality names. It holds roughly 600 securities, with top positions including Banco Bilbao Vizcaya Argentaria (BBVA), Safran, Shell (SHEL), Roche Holding, Rolls-Royce Holdings, BHP Group (BHP), Zurich Insurance Group, Toronto-Dominion Bank, UBS Group (UBS), and BP (BP).

Sector allocation is led by financials, followed by energy, industrials, and materials, reflecting the fund's value orientation. Country exposure is concentrated in Japan, the United Kingdom, Canada, Germany, and France. The expense ratio is 0.25%, and portfolio turnover is low, giving the fund an efficient, semi-transparent structure. AVIV's distinguishing feature is its disciplined, rules-based active approach to international value rather than a pure index replication.

Vanguard International High Dividend Yield ETF (VYMI) Overview

VYMI is a passive exchange-traded fund that tracks the FTSE All-World ex U.S. High Dividend Yield Index. The index takes a universe of non-U.S. stocks, selects the top half by forecasted 12-month dividend yield (excluding real estate investment trusts, or REITs), and weights the result by market capitalization. This produces a broadly diversified portfolio of roughly 1,560 holdings with an expense ratio of just 0.07%.

Top holdings include HSBC Holdings (HSBC), Roche Holding, Royal Bank of Canada (RY), Novartis (NVS), Shell (SHEL), Nestlé, Mitsubishi UFJ Financial Group, BHP Group (BHP), Banco Santander (SAN), and Toyota Motor (TM). Financials are the largest sector, followed by industrials, consumer staples, and health care. Country exposure is led by Japan and the United Kingdom, with meaningful weight in Switzerland, Canada, Australia, and China. VYMI pays distributions quarterly and is oriented toward income-seeking investors who prioritize low cost and maximum diversification.

Industry and Thematic Backdrop

Both funds sit at the intersection of two durable themes: international diversification and value investing. In recent market cycles, non-U.S. equities have drawn renewed attention as investors seek alternatives to elevated U.S. valuations. International markets also carry heavy weightings in financials and energy — sectors that have benefited from firmer interest-rate environments and disciplined capital return among global banks and integrated energy producers. At the same time, a stronger U.S. dollar, slower growth in Europe, and geopolitical uncertainty across key regions remain persistent risks for international portfolios. Dividend-oriented strategies like VYMI have further benefited from steady demand for income, while value-tilted approaches like AVIV have leveraged the relative momentum of cheaper cyclicals. These macro currents shape both the opportunity and the risk profile of the two funds.

Performance and Positioning Comparison

Over recent weeks and months, AVIV has generally outpaced VYMI, a divergence consistent with the stronger showing of deep-value and cyclical names versus the broader high-dividend universe. AVIV's active tilt toward energy, financials, and industrials has amplified its sensitivity to value rotation and the earnings cycles of its top holdings, giving it a more concentrated and potentially more volatile profile. VYMI, by contrast, has delivered steadier relative positioning through its far larger, market-cap-weighted portfolio, which dampens single-stock and single-sector risk but also reduces upside during sharp value rallies. In broad terms, AVIV represents a higher-conviction, factor-driven exposure, while VYMI represents a lower-cost, income-focused baseline. Investors weighing the two are effectively choosing between momentum-tilted value and broadly diversified dividend yield.

AI Screener

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Tickeron AI Verdict

Based on observable structural and trend factors, Tickeron's AI would currently favor AVIV. The fund combines a disciplined, profitability-adjusted value approach with stronger recent trend consistency and relative momentum across its energy, financial, and industrial exposures. Although VYMI holds clear advantages in cost efficiency and breadth of diversification, the AI's probabilistic weighting of momentum, factor exposure, and sector leadership tilts the verdict toward AVIV in the present environment. This is not investment advice but a data-informed assessment of which profile appears better positioned under current conditions.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

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