The Vanguard High Dividend Yield ETF (VYM) made its debut on 11/10/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
Vanguard High Dividend Yield ETF (VYM) is a diversified, large-cap fund offering consistent income and growth, but currently rated as a hold. VYM outperforms its peer group in total returns over 1 and 5 years and boasts the lowest expense ratio at 0.06%. Despite strong performance, VYM's dividend yield and growth lag both the ETF median and most peers, raising concerns for income-focused investors.
One of my favorite ways to invest in stocks is through exchange-traded funds (ETFs) because they simplify the investment process. You don't need to spend hours researching companies or making the "right" investment.
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The company operates on an indexing investment approach, meticulously designed to mirror the performance of a specifically chosen index. This index comprises common stocks from corporations known for their higher-than-average dividend payouts. Through a strategic replication process, the company seeks to invest its assets predominantly in the stocks constituting the index, ensuring each stock proportionally matches its index weighting. This methodical investment approach emphasizes the importance of dividends in the overall strategy, positioning the company as a key player for investors looking to benefit from dividend-yielding stocks.
An investment strategy that aims to track the performance of a designated index, which is composed of high dividend-paying stocks. This approach is designed for investors seeking a passive investment strategy that mirrors the overall market performance of selected dividend-yielding stocks.
Selection of stocks that offer higher-than-average dividends, aimed at investors who prioritize income generation alongside capital appreciation. This service focuses on identifying and investing in companies with a strong track record of dividend payments, providing a stable income stream for investors.
A meticulous strategy where the fund's assets are invested in a way that each stock is held in approximately the same proportion as its weighting in the target index. This replication ensures the fund closely matches the performance of the index, minimizing tracking error and aligning with investors’ expectations of index performance.