Vanguard High Dividend Yield ETF: A Comprehensive Guide

The Vanguard High Dividend Yield ETF is a popular investment option for those seeking regular income. It tracks the performance of the FTSE High Yield Index, which selects securities from the US investment-grade bond market.

The fund's primary goal is to provide a high level of dividend income for investors. Its investment strategy focuses on large-cap stocks with a history of paying consistent dividends.

The ETF holds a diverse portfolio of over 200 stocks, with a significant allocation to the financial sector. This sector weighting is a result of the index's selection process, which favors companies with high dividend yields.

Investors can expect a relatively stable share price, given the fund's focus on established companies with a history of paying dividends.

Vanguard High Dividend Yield ETF has a management team with an average tenure of 5.28 years, with 2 members, Nick Birkett (2023) and Gerard O’Reilly (2016).

The ETF has a single primary benchmark, the FTSE High Dividend Yield TR USD index, which it tracks with a 100% weighting.

Vanguard High Dividend Yield ETF holds 539 securities in its portfolio, with the top 10 holdings making up 24.7% of its assets.

The ETF meets the SEC requirement of being classified as a diversified fund, which is a testament to its well-diversified portfolio.

Vanguard High Dividend Yield ETF has a minimal allocation to foreign issues, with only 1.7% of its portfolio invested overseas.

The ETF's bond allocation is a mere 0.0% of its total assets, indicating that it is primarily focused on stocks.

A small portion of the portfolio, 0.2%, is invested in cash, which is a prudent move to maintain liquidity.

Vanguard High Dividend Yield ETF has a strong focus on domestic stocks, with 98.1% of its assets allocated to U.S. equities.

The Vanguard High Dividend Yield ETF has had a solid performance over the years, with a 1-year return of 8.79%. This is a significant increase, and it's worth noting that the 2-year return is even higher, at 10.03%.

The ETF's 1-month return is 2.81%, which is a respectable gain. However, it's worth mentioning that the 3-month return is only 0.69%, which is a relatively slow pace.

Here's a breakdown of the ETF's performance over different time periods:

The Vanguard High Dividend Yield Index Fund ETF offers a diversified portfolio of high-income stocks with a low expense ratio of 0.06%.

This ETF focuses on high-quality, dividend-paying stocks, with a strong emphasis on providing consistent income to investors.

If you're looking for investment options in the U.S. market, you have several choices. One popular option is the Vanguard High Dividend Yield Index Fund ETF (VYM), which has a low expense ratio of 0.06%. This ETF offers a diversified portfolio of high-income stocks, with a current yield of 2.7%.

VYM is a well-balanced fund that has historically delivered average returns in the large-cap value category. It's also a low-cost option, making it a great choice for investors who want to keep their expenses low. The fund has returned 23.2% over the past year, which is 0.8 percentage points better than the category average.

Another option to consider is the Vanguard Dividend Appreciation ETF (VIG), which offers exposure to dividend-paying large-cap U.S. companies that exhibit growth characteristics. However, it's worth noting that VIG has a slightly higher expense ratio of 0.06% compared to VYM.

Here are some key statistics for VYM:

These statistics show that VYM has had a strong performance over the past few years, with returns ranging from 1.1% to 26.1%. The fund's expense ratio is also very low, at 0.06%.

Big Tech dominates markets, but it faces risks like slowing growth and inflated valuations.

Dividend stocks offer a safer alternative, with options like VYM and SC providing a steady income stream.

Investors should consider the risks of AI dependency, which could impact Big Tech's growth and profitability.

Dividend stalwarts, on the other hand, tend to be more stable and less volatile, making them a smarter choice for those looking for long-term returns.

Big Tech's inflated valuations can make them more susceptible to market downturns, whereas dividend stocks tend to be more resilient during economic uncertainty.

Investing in dividend growers can be a smart move, but not all of them are worth your time and money. Dividend growers like those mentioned in "Overrated And Underrated Dividend Growers" can compound passive income exponentially over the long term.

Some dividend growers are overhyped, while others are underrated. Researching and comparing different dividend growers, like the ones in the example, can help you make informed investment decisions.

Investing in the right dividend growers can lead to significant returns over time. By comparing and contrasting different dividend growers, you can find the ones that are most likely to deliver on their promises.

Dividend growers with a history of steady dividend increases are often a safer bet. This is one reason why the dividend growers in "Overrated And Underrated Dividend Growers" are worth considering.

It's essential to do your homework and research different dividend growers before investing. This will help you avoid overrated and underperforming dividend growers.

You can allocate $100,000 in a dividend portfolio that holds VYM as a core element while enhancing the ETF with 10 individually selected companies. By including these companies, the resulting portfolio can provide a more diversified income stream.

Building a portfolio with high-yield ETFs and CEFs simplifies the passive income snowball construction process considerably. This approach can be particularly beneficial for retirees seeking a 7% yield.

To enhance VYM, you can select 10 individually chosen companies that complement its holdings. This strategic approach can help optimize your dividend portfolio's performance.

VYM is a core element in a dividend portfolio that can be combined with two other funds to create a 7%-yielding retirement passive income portfolio.

Investing in the Vanguard High Dividend Yield ETF comes with some level of risk, just like any other investment. There are risks involved, including possible loss of money, and shares are not actively managed.

The fund's return may not match the return of the underlying index, and it's subject to certain other risks. For example, investments focused in a particular industry or sector are subject to greater risk and are more greatly impacted by market volatility.

The fund may also become "non-diversified" as defined under the Investment Company Act of 1940, as amended, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the index.

The ongoing charge (OCF/TER) for Vanguard High Dividend Yield ETF is 0.29%, which includes the management fee. The indicative spread is 0.35%. In certain cases, additional costs may apply.

The fund's fees are relatively low compared to other investment options. However, high portfolio turnover can translate to higher expenses and lower after-tax returns.

When evaluating the costs associated with an investment, it's essential to consider the ongoing charges, management fees, and indicative spread. The Vanguard High Dividend Yield ETF has an Ongoing Charge (OCF/TER) of 0.29%, which is also the management fee.

The indicative spread for this ETF is 0.35%. This means that investors should be aware of these costs and consider them when making investment decisions.

To give you a better idea of the costs involved, here is a breakdown of the fees associated with the Vanguard High Dividend Yield ETF:

Please note that in some cases, additional costs may apply, so it's crucial to read the Key Investor Information Document, Factsheet, Prospectus, and any other relevant documentation prior to investing.

Investing in ETFs involves risks, including possible loss of money, and shares are not actively managed.

The Fund's return may not match the return of the Underlying Index, and the Fund is subject to certain other risks.

Securities that pay high dividends as a group can fall out of favor with the market, causing such companies to underperform companies that do not pay high dividends.

There is no assurance that the Fund will provide low volatility, and the Fund may become "non-diversified" due to changes in market capitalization or index weighting.

Beta is a measure of risk representing how a security is expected to respond to general market movements, and Smart Beta funds may underperform cap-weighted benchmarks and increase portfolio risk.

The value and income derived from investments may go down as well as up, and past performance is no guarantee of future results.