VYM: Risk Premium Still Near 10-Year Peak Despite Treasury Rates Decline
VYM: Risk Premium Still Near 10-Year Peak Despite Treasury Rates Decline
Is Vanguard High Dividend Yield ETF (VYM) a Strong ETF Right Now?
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.
Don't Settle: Augment VYM With Bigger And Faster-Growing Dividends
The Vanguard High Dividend Yield Index Fund ETF Shares' yield is lackluster, and its dividend growth is slowing—here's how to boost your yield and dividend growth. These alternatives deliver higher yields, rapid dividend growth, and stronger long-term returns. Unlock inflation-beating income and long-term outperformance by supplementing VYM with these high-growth dividend plays.
VYM vs. VIG: Which Vanguard Dividend ETF Delivers the Best Returns?
Retail investors are looking to add exchange-traded funds (ETFs) to their portfolios to reduce risk and achieve diversification.
VYM: A Moderate Growth Fund That Has Some Flaws
VYM has a 93% correlation with the S&P 500 but has underperformed due to lower exposure to the technology sector and conservative consumer defensive sector. VYM's expense ratio is 0.06%, with a yield of 2.61%, and $75.86 billion in assets, making it a moderate growth fund with minimal income payouts. The ETF's holdings are diversified, but core healthcare stocks like Merck and Johnson & Johnson have underperformed, impacting overall returns.
Should Vanguard High Dividend Yield ETF (VYM) Be on Your Investing Radar?
The Vanguard High Dividend Yield ETF (VYM) was launched on 11/10/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
VYM: An ETF Outperformance Candidate For 2025
Vanguard High Dividend Yield Index ETF is poised for outperformance in 2025 due to heavy exposure to the Financials sector benefiting from higher federal fund rates. The ETF's low-cost structure and focus on high-yielding stocks make it an attractive option for long-term wealth creation and dividend reinvestment. Significant holdings include Broadcom, JPMorgan, and ExxonMobil, with Financials comprising 23% of the portfolio.
VYM: Diversified Dividends For Long-Term Stability
Vanguard High Dividend Yield ETF balances total return and dividend yield, ideal for investors seeking steady returns and low-cost diversification. It offers a less speculative alternative to the S&P 500 Index, making it suitable for conservative investors. The ETF's low-cost structure enhances its appeal, providing an efficient way to gain exposure to high dividend-yielding stocks.
VYM: Dividend ETF Full Of Stocks I Don't Want To Own (Technical Analysis)
I see very few stocks worth buying or holding, making it challenging to find opportunities in a market full of threats. The Vanguard High Dividend Yield ETF is high-risk, with over 500 stocks, making it difficult to generate alpha. Many top holdings in VYM, like Broadcom, Procter & Gamble, and PepsiCo, show signs of vulnerability and poor performance.
VYM: Quality Income Doesn't Have To Have A High Yield
Despite VYM's lower yield, I am bullish on its blend of dividend growth and capital appreciation, outperforming many high-yield ETFs. VYM has appreciated 17% in the past year, with a total return of 20.60%, surpassing high-yield ETFs like JEPI and XYLD. The risks include opportunity cost and macroeconomic factors, but VYM's strong portfolio and dividend growth history make it a strategic investment.
VYM vs SCHD: Which Dividend ETF Should You Buy in 2025?
Dividend ETFs allow investors to generate steady cash flow and appreciation.
VYM: Long-Term Value Opportunity
Vanguard High Dividend Yield ETF offers passive income investors a 2.7% yield, monthly dividends, and consistent long-term NAV growth since its inception in 2006. VYM is well-diversified, primarily investing in large-cap, dividend-growing stocks, with Broadcom as a top holding benefiting from AI market growth. The ETF has produced an 8.6% annual return since 2006 and is poised for continued strong returns, especially with potential economic growth in 2025.
