Vanguard High Dividend Yield ETF

VYM

Market cap $68.3B

The Vanguard High Dividend Yield ETF (VYM) focuses on companies with above-average dividend yields and financial stability. VYM's average dividend over the past decade has been 3%.

Vanguard High Dividend Yield ETF is more diversified and has much higher assets under management than iShares Core High Dividend ETF. HDV offers a higher dividend yield, but VYM has delivered stronger recent total returns.

Dividend growth stocks have a simple premise. Get low yields now that grow rapidly and generate high income by the time you retire.

This Vanguard ETF is approachable for cash-constrained investors. It's one of the most popular funds in the dividend ETF category.

Hedge funds are always buying and selling stocks and exchange-traded funds (ETFs), and while it might not always be a great idea to replicate their moves, it doesn't hurt to keep a watch on what they're eyeing.

Gaining exposure to stocks through ETFs offers more diversification. There are now thousands of ETFs that investors can purchase.

The S&P 500 index is heavily tilted toward technology stocks today. Vanguard High Dividend ETF's design has created a diversified portfolio that is more varied than the S&P 500 index.

VYM is one of five large-cap value ETFs to have at least $1B in assets and five consecutive years of dividend growth. In fact, VYM, DGRO, VIG, VTV, and SCHD are on 10+ year dividend growth streaks, and this article compares them all with in-depth fundamental analysis. Good diversification, an attractive P/E, and a moderate 2.58% estimated yield are all nice features of VYM. However, its 4.11% five-year dividend growth rate is on the low end.

Vanguard High Dividend Yield ETF (VYM) is a smart investment option for those seeking higher yields. VYM offers a 2.49% dividend yield, holds over 500 stocks across various sectors, and charges minimal fees.

The Vanguard High Dividend Yield ETF invests in industry-leading, dividend-paying companies. The Schwab U.S. Dividend Equity ETF is heavily weighted in high-yield, low-growth stock market sectors.