Could Investing $10,000 in VYMI Make You a Millionaire?

There's no guaranteed way to become a millionaire, but investing in stocks can be one of the best. The stock market has delivered average annual returns of 10% for the past 50 years. (That includes up years and down years.) If you invested $10,000 in the S&P 500 index and could earn 10% average annual returns, after 49 years, you'd have $1 million.

But what if you want to get your million sooner than that? The Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) has delivered stronger gains in the past year than the S&P 500 index and the tech-heavy Nasdaq-100 index. For the past five years, this international stock exchange-traded fund (ETF) has delivered average annual returns (by net asset value) of 14.9%.

If this fund can keep beating the S&P 500 for the long term, it could make you a millionaire sooner. There are no guarantees in investing, but here's a closer look at how this fund could make your money grow.

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10 years of 11.7% average annual returns

The Vanguard International High Dividend Yield ETF invests in a portfolio of 1,532 stocks around the world. Since this fund was created in February 2016, it has delivered average annual returns (by net asset value) of 11.7%. That means if you had invested $10,000 into this fund in February 2016, as of February 2026, you'd have about $30,000.

Why has this Vanguard ETF delivered such strong growth? Part of the reason is likely the recent strong performance of international stocks. For example, the Vanguard Total International Stock ETF (NASDAQ: VXUS) has gained 20.6% in the past year, while the S&P 500 index is up 14.4%.

VYMI data by YCharts

But the Vanguard International High Dividend Yield ETF is not just a broad mix of international stocks. It focuses on international large-cap stocks that are projected to deliver higher-than-average dividend yields. Owning this ETF gives you exposure to well-established, steadily profitable international companies. These dividend stocks might not grow as fast as the most high-flying tech stocks, but they might outperform broader international stock ETFs.

The top 10 holdings in the Vanguard International High Dividend Yield ETF include pharmaceutical stocks like Roche and Novartis, major international banks and financial stocks like HSBC Holdings and Royal Bank of Canada, oil major Shell, and BHP Group, an Australian mining stock. And most of this fund's stocks are from companies in developed economies -- only 20.7% of the fund is in emerging markets.

How $10,000 invested in VYMI could grow to $1 million

Let's say that you invest $10,000 in Vanguard International High Dividend Yield ETF today, and let's assume that the ETF keeps delivering the same 11.7% average annual return that its investors have received for the past 10 years. There's no guarantee that will happen, and the world could change a lot in the coming years, but we're just looking at a hypothetical. After 20 years, your initial $10,000 investment would grow to $91,425. After 35 years, you'd have $480,685. And after 42 years, you'd have more than $1 million. That's seven years faster than the S&P 500 hypothetical we started with.

There are no guarantees that any investment will make you a millionaire, deliver long-term gains, or outperform the S&P 500 index for long. But this is an excellent international ETF with low fees (its expense ratio is only 0.07%). For patient, long-term investors who want exposure to international dividend stocks, the Vanguard International High Dividend Yield ETF could be a good buy.

HSBC Holdings is an advertising partner of Motley Fool Money. Ben Gran has positions in Vanguard Total International Stock ETF. The Motley Fool has positions in and recommends Vanguard Total International Stock ETF. The Motley Fool recommends BHP Group, HSBC Holdings, and Roche Holding AG. The Motley Fool has a disclosure policy.