Vanguard High Dividend Yield ETF VYM Investing Guide

The Vanguard High Dividend Yield ETF (VYM) is a popular investment option for those seeking regular income. It tracks the performance of the FTSE High Yield Index, which consists of high dividend-yielding stocks.

VYM has a low expense ratio of 0.06%, making it an attractive choice for investors. This low cost can help maximize returns over time.

The ETF holds a diversified portfolio of 332 stocks, with the top 10 holdings making up approximately 20% of the total assets. This diversification can help reduce risk and increase potential for long-term growth.

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VYM is a popular choice among income investors, and for good reason. It's a low-cost, diversified fund that offers a high dividend yield.

The Vanguard High Dividend Yield ETF (VYM) invests in a portfolio of high-dividend-yielding stocks, focusing on established companies with a history of paying consistent dividends.

VYM has a low expense ratio of 0.06%, making it an attractive option for those looking to maximize their returns.

The fund's investment approach is designed to provide a high level of income, with a dividend yield that's significantly higher than the broader market.

As of the latest data, VYM has a dividend yield of around 3.5%, which is higher than the S&P 500's dividend yield.

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You can buy shares of the Vanguard High Dividend Yield ETF directly from Vanguard or through your own brokerage account.

The Vanguard High Dividend Yield Index Fund ETF has a low expense ratio of 0.06%, making it a cost-effective investment option.

Big Tech may dominate markets, but it faces risks like slowing growth, AI dependency, and inflated valuations, making dividend stalwarts a safer alternative.

You can buy the Vanguard High Dividend Yield ETF (VYM) directly from Vanguard or through your own brokerage account. The process is straightforward and easy to follow.

To buy VYM, you can use your own brokerage account, which is a convenient option. You can also buy shares directly from Vanguard's website.

Buying shares directly from Vanguard is a great option if you already have an account with them. You can simply log in to your account, select the VYM ETF, and place your order.

If you choose to buy VYM through your own brokerage account, you'll need to search for the ETF and select it from the available options.

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VYM offers a diversified portfolio of high-income stocks with a low expense ratio of 0.06%. This means you can expect to pay less in fees, which is always a good thing.

Big Tech may be dominating the markets, but it faces risks like slowing growth, AI dependency, and inflated valuations. Dividend stocks, on the other hand, offer a safer alternative.

High valuations, lower yields, and a tough risk/reward environment make it challenging to navigate the market as a dividend investor. But, high-quality dividend stocks can still provide steady returns.

VYM's low-fee structure and shareholder ownership model aim to maximize investor returns by minimizing management fees. This can lead to enhanced long-term compounding benefits.

Investing in VYM can provide a stable source of income, thanks to its diversified portfolio of high-income stocks.

Additional reading: Diversified Etfs

VYM offers a diversified, stable portfolio with a low-fee structure that aims to maximize investor returns by minimizing management fees, enhancing long-term compounding benefits.

The Vanguard High Dividend Yield ETF tracks the FTSE High Dividend Yield Index and contains 536 stocks with a median market cap of $142 billion.

By holding VYM, you'll get exposure to various stock market sectors, with the financials sector representing roughly 21.8% of the overall portfolio.

Here's a breakdown of VYM's weighted exposure across 10 of the 11 stock market sectors, as of late 2024:

VYM's top 10 holdings have a significant impact on the returns of the ETF, with Broadcom, JPMorgan Chase, and Exxon Mobil being the top three holdings, each with a significant percentage of the portfolio.

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Vanguard High Dividend Yield ETF (VYM) has a portfolio turnover rate of just 6%, which is significantly lower than the average of 49% for the Large Value category. This lower turnover rate can help keep expenses down.

The ETF's expense ratio is a very low 0.06%, which is even lower than the category average of 0.35%. This is a significant advantage for investors, as it means more of your money can go towards your investments rather than fees.

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The ETF's return in November 2024 was 5.4%, which earned it a grade of D, as the Large Value category had an average return of 5.7%. This is a relatively low return compared to its peers.

Here's a comparison of the ETF's turnover rate to the category average:

This table shows just how low VYM's turnover rate is compared to its peers.

When building a dividend portfolio with Vanguard High Dividend Yield ETF (VYM) as a core element, it's essential to consider the sector breakdown of the ETF. The Financial Services sector holds the largest weighting of 20.32%, followed closely by Healthcare at 15.47%.

The sector breakdown can be seen in the following table:

The dividend yield of VYM is 3.00%, which ranks 46.44% in the category.

The Vanguard High Dividend Yield ETF, also known as VYM, is a diversified investment option with a low-fee structure.

Its holdings are comprised of 536 stocks, with a median market cap of $142 billion, and track the FTSE High Dividend Yield Index.

The ETF's top 10 holdings include Broadcom, JPMorgan Chase, and Exxon Mobil, which together have a significant impact on the fund's returns.

These stocks are spread across various sectors, with the financials sector representing the largest portion at 21.8% of the portfolio.

Here's a breakdown of the ETF's weighted exposure across different sectors as of late 2024:

The fund has a low-fee structure and a shareholder ownership model that aims to maximize investor returns by minimizing management fees.

The Stock Sector Breakdown of VYM is a crucial aspect of understanding how your portfolio is allocated.

The Financial Services sector makes up a significant portion of VYM, weighing in at 20.32%. This is a substantial allocation, and it's essential to consider the potential risks and rewards associated with this sector.

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Healthcare is another sector with a notable weighting of 15.47%. This is a sector that has historically performed well, with a return high of 30.08% and a VYM % rank of 68.78%.

Consumer Defense has a lower weighting of 13.47%, but still contributes to the overall performance of VYM. It's essential to monitor this sector's performance and adjust your allocation accordingly.

Here's a breakdown of the sectors and their respective weightings:

The Real Estate sector has the lowest weighting of 0.02%, but still has a high return potential with a return high of 90.54%. It's essential to keep an eye on this sector's performance and adjust your allocation accordingly.

Overall, it's essential to regularly review and adjust your portfolio's sector allocation to ensure it aligns with your investment goals and risk tolerance.

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VYM is a core element in our dividend portfolio, and it's essential to understand its distribution and analysis. VYM has a dividend yield of 3.00%.

For another approach, see: Vym Dividend Yield

One of the key metrics to consider when evaluating VYM is its dividend yield rank within its category. According to the dividend yield analysis, VYM ranks 46.44% in its category.

As we allocate our $100,000, we can consider VYM as a foundation for our dividend portfolio, alongside our individually selected companies. This combination can help us achieve a more diversified income stream.

The dividend yield analysis also provides a comparison to the category low and high, which are 0.00% and 16.67% respectively. This gives us a context for VYM's performance within its category.

If you're considering Vanguard High Dividend Yield ETF (VYM), you might also want to look into other options like iShares Select Dividend ETF (DVY) and SPDR S&P 500 Dividend ETF (SDY).

Both DVY and SDY have a slightly lower expense ratio than VYM, at 0.38% and 0.35% respectively.

DVY has a slightly higher dividend yield, at 3.35%, compared to VYM's 3.24%.

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VYM has received a grade of C for its year-to-date performance, 0.8 percentage points better than its category. This is based on its 23.2% return, which outperformed the category's 22.4% return.

The fund has a relatively high turnover rate of 6.0%, which could lead to higher costs and tax liabilities. However, its expense ratio is a low 0.06%, which is significantly lower than the category average of 0.35%.

VYM has returned 30.0% over the past year, earning it a grade of B. However, its past five-year return of 11.4% per year is only a grade of C. Its 10-year return of 10.2% per year also earns a grade of C.

Here's a breakdown of VYM's grades for different time periods:

VYM's performance is also influenced by its beta, which is 0.77, indicating that it has historically been less volatile than the market. Its standard deviation is 15.6%, which is lower than the category average.

The Vanguard High Dividend Yield ETF (VYM) is an excellent choice for retirement income.

VYM offers a diversified portfolio of high-income stocks with a low expense ratio of 0.06%. This makes it an attractive option for those looking to simplify their passive income snowball construction process.

The fund focuses on high-quality, dividend-paying stocks, which can provide a relatively stable source of income. In late 2024, the ETF paid a dividend that yields approximately 2.6%, about double what the average stock trading on the S&P 500 pays.

Quarterly dividend income payments are made, but payments will fluctuate from quarter to quarter based on the dividends received from the underlying portfolio holdings.

Here are the dividend payments made by VYM in recent quarters:

This information can help you plan your retirement income and make informed decisions about your investments.