Vanguard High Dividend Yield ETF (NYSEARCA:VYM) has become one of the largest income vehicles in the market, with $94.6 billion in net assets per its most recent NPORT filing.
Launched on 11/10/2006, the Vanguard High Dividend Yield Index Fund ETF Shares (VYM) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
For a 70-year-old recent widow trying to simplify her late husband's portfolio, the appeal of Vanguard High Dividend Yield ETF (NYSEARCA:VYM) starts with a simple count: 618 individual stocks, with the top 10 representing 26% of assets.
If you own Vanguard High Dividend Yield Index Fund ETF Shares (NYSEARCA:VYM) for the income, the question worth asking is whether VYM's distribution can keep rising through a downturn without forcing you to reinvest at lower prices.
While the resurgence of American industry and business is certainly laudable, the rest of the international community is not being left behind completely.
If you hold Vanguard High Dividend Yield Index Fund ETF Shares (NYSEARCA:VYM) in a taxable brokerage account, every December distribution check comes with an IRS partner.
Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Vanguard High Dividend Yield Index Fund ETF Shares (VYM) is a passively managed exchange traded fund launched on November 10, 2006.
For income-focused investors, the Vanguard High Dividend Yield ETF (NYSEARCA:VYM) is often the default pick.
The Vanguard High Dividend Yield Index Fund ETF Shares (NYSEARCA:VYM | VYM Price Prediction) is one of the simplest income vehicles in the market: it owns roughly 500 U.S.
I think VYM is a compelling tool for derisking and diversifying away from tech-heavy indices like the S&P 500. VYM's methodology selects non-hyped, shareholder-oriented large and mid-cap stocks, avoiding the 'Magnificent 7' and speculative sectors, with ~17% tech exposure. Despite its 'high yield' label, VYM's ~2.2% yield is subpar for income seekers; its strength lies in efficient, low-cost diversification and an unexpected tax efficiency in regard to dividends.
The Vanguard High Dividend Yield ETF (NYSEARCA:VYM | VYM Price Prediction) addresses a specific retirement problem: drawing income from stocks without concentrating the outcome in any one company.
A retiree holding $200,000 of Vanguard High Dividend Yield ETF (NYSEARCA:VYM | VYM Price Prediction) collects roughly $5,800 in annual income at the fund's 2.9% distribution yield, with no rebalancing and no concentration risk to monitor.