Should Vanguard High Dividend Yield ETF (VYM) Be on Your Investing Radar?
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 November 10, 2006.
VYM: A Potential Rate Cut Loser (Rating Downgrade)
VYM has delivered strong 1-year performance and offers long-term dividend growth, but its heavy financial sector exposure is concerning as rate cuts loom. I am downgrading VYM from a buy to hold due to the risk that falling federal fund rates will hurt banks and financials, dragging down the ETF's NAV returns. While VYM has solid historical NAV growth, SCHD has outperformed it and offers better sector diversification, especially less exposure to the financial sector.
VYM: Reassessing After A Successful Three Months (Rating Downgrade)
The S&P 500 looks historically expensive, trading at over 30x earnings, making future returns riskier for investors. Vanguard High Dividend Yield Index Fund ETF Shares offers a more reasonable valuation, with a 20x P/E and a 5% earnings yield, compared to the overheated broader market. While VYM's yield is below treasuries, its dividend growth and stability provide a buoy against market volatility for long-term investors.
The Only Time I Would Buy VYM Instead Of SCHD
SCHD ETF is a favorite among dividend-growth ETF investors. However, VYM does have some advantages over SCHD. We discuss when I would buy VYM instead of SCHD (and when I wouldn't).
Why Vanguard's VYM Is My Go-To Dividend ETF This Year
The Vanguard High Dividend Yield Index Fund ETF (NYSEARCA:VYM) is one of the many dividend ETFs you can choose.
Is Vanguard High Dividend Yield ETF (VYM) a Strong ETF Right Now?
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.
VYM: A Good Choice For Income Oriented Investors
VYM offers low-cost, broad diversification and dependable income, making it ideal for retirees or income-focused investors seeking inflation-resistant cash flow. The fund's recent underperformance versus the broader market may present a buying opportunity, especially if inflation rebounds and dividend strategies come back in favor. VYM consistently tracks its benchmark with minimal deviation, thanks to Vanguard's scale and ultra-low expense ratio, outperforming higher-cost peers over time.
Should Vanguard High Dividend Yield ETF (VYM) Be on Your Investing Radar?
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.
Why VYM Could Be the Reliable Dividend ETF You Need
Vanguard's High Dividend Yield Index Fund ETF Shares (VYM) has a history of delivering a balance of steady income and capital appreciation over the long term.
VYM Vs. SCHY: Don't Bet Against America And Buy VYM
Tariff developments since my last writing have led me to see an improved return/risk profile for VYM, especially when compared to international peers such as SCHY. VYM has historically outperformed SCHY and I expect such performance to continue for several reasons. The top reasons are VYM's more attractive growth-adjusted valuations, broader diversification, and U.S. market advantages.
VYM: Lagging Dividend Peers, Market Indexes, Sell This ETF
Vanguard High Dividend Yield Index Fund is rated a 'Sell' due to its lack of tech exposure and underperformance compared to peers. VYM's 2.93% dividend yield and 148% appreciation since inception are overshadowed by better-performing ETFs like VOO and SCHD. The Fund's 9.1% tech sector weighting and slower dividend growth make it less attractive for both dividend and market ETF investors.
VYM Vs SCHD: Why I Prefer Schwab's Dividend ETF Over Vanguard's
Two of the largest US dividend-focused ETFs are Vanguard's VYM and Schwab's SCHD. SCHD has a significantly higher dividend yield and historic dividend growth rate, along with better Seeking Alpha Dividend Grades among its top holdings. VYM's big advantage is that it is more diversified, though it still has 24% in its top 10 holdings, and at a cost of a significantly lower yield than SCHD.
