# VYM vs VHYD vs VHYA: which ETF for UAE residents?

Source page: https://www.rudowealth.com/etf/compare/vym-vs-vhyd-vs-vhya

VYM holds US companies with high dividends. VHYD and VHYA hold high-dividend companies around the world (VHYL is the sterling line of VHYD), so they are a global alternative rather than the same fund in Irish form. For an investor living in the UAE, how dividends are taxed matters more here than for other funds.

| ETF | Name | Domicile | Index | Dividends | Expense ratio | Listing |
|---|---|---|---|---|---|---|
| VYM | Vanguard High Dividend Yield ETF | United States | FTSE High Dividend Yield | Paid out quarterly | 0.04% | NYSE Arca, US dollars |
| VHYD | Vanguard FTSE All-World High Dividend Yield UCITS ETF (USD, Dist) | Ireland (UCITS) | FTSE All-World High Dividend Yield | Paid out quarterly | 0.29% | London, US dollars |
| VHYA | Vanguard FTSE All-World High Dividend Yield UCITS ETF (USD, Acc) | Ireland (UCITS) | FTSE All-World High Dividend Yield | Reinvested (accumulating) | 0.29% | London, US dollars |

Returns in US dollars (3 years and longer annualised):

| ETF | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| VYM | +12.58% | +18.47% | +11.09% | +11.35% |

What differs for an investor living in the UAE:
- US estate tax: a US-domiciled ETF counts as a US asset. For a person who is not a US citizen or resident, US estate tax can apply above US$60,000 of US assets, at rates that rise to 40%. Ireland-domiciled UCITS ETFs are generally not treated as US assets for this tax.
- Tax on US dividends: the UAE has no income tax treaty with the United States, so US dividends paid to a UAE resident usually have 30% withheld. An Irish UCITS fund pays 15% on the US dividends it receives, under the US and Ireland treaty.
- The outcome depends on your nationality, residence and facts, so confirm your own position with a tax adviser. Sources: IRS (https://www.irs.gov/individuals/international-taxpayers/some-nonresidents-with-us-assets-must-file-estate-tax-returns; https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z).

---
RuDo Wealth is a fee-only cross-border advisory operating through two separate companies. India: RuDo Wealth Investment Advisory, SEBI Registered Investment Adviser, registration INA000019503. UAE: RuDo Digital Wealth, FSRA Financial Services Permission 220155, Category 3C (Retail), ADGM. The entity permitted to serve you depends on your country of residence.

General information, not a recommendation to buy or sell any fund. Past performance does not indicate future returns.