The high dividend yield factor has improved its relative performance in recent months, while the fund has made new highs in the second half. With a mid-teens earnings multiple, I continue to see a solid value case in the Vanguard High Dividend Yield Index ETF. With 13 years of rising dividends, I offer a refreshed look at this US large-cap value fund and eye the charts.
A smart beta exchange traded fund, the Vanguard High Dividend Yield ETF (VYM) debuted on 11/10/2006, and offers broad exposure to the Style Box - Large Cap Value category of the market.
Dividends can be a long-term income option for investors, but not all companies sustain dividends indefinitely. Investing in dividend-paying stocks can provide a healthy income over time, but diversification is crucial to mitigate risks. Vanguard High Dividend Yield Index Fund ETF offers moderate yields and growth, while Schwab US Dividend Equity ETF provides higher dividend growth.
Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Vanguard High Dividend Yield ETF (VYM) is a passively managed exchange traded fund launched on 11/10/2006.
VYM prices were largely trapped in a consolidation window between $110 and $120 in the past ~3 years or so. Catalysts developed recently are finally pushing it out of this multi-year trading window. The top catalysts are the updated probability of interest rate cut(s) and the change in market sentiment.
In November last year, I published a conservative article on VYM arguing that there is no material reason to go long this ETF. Since then, VYM has delivered double-digit total returns, but still lagged behind the S&P 500. In this article, I assess the recent dynamics of VYM and revisit my previous thesis to see whether there is better basis now to invest in the ETF.
Making its debut on 11/10/2006, smart beta exchange traded fund Vanguard High Dividend Yield ETF (VYM) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
The Vanguard High Dividend Yield Index Fund ETF aims to track FTSE High Dividend Yield Index. The Vanguard Total Stock Market Index Fund ETF is used to compare VYM in terms of both yield and total return. Both VYM and VTI are Large-Cap ETFs. Along with reviewing both of those ETFs and comparing income and returns, VYM is also compared to competing dividend-focused ETFs.
Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Vanguard High Dividend Yield ETF (VYM), a passively managed exchange traded fund launched on 11/10/2006.