VYM

VYM ETF Analysis

NYSEARCA: VYM

Vanguard High Dividend Yield ETFLarge Cap EquityMkt cap $94.61BCIK 0001004655

$159.26-1.34 (-0.83%)
Summary

The Vanguard High Dividend Yield ETF (VYM) aims to mirror the investment returns of the FTSE High Dividend Yield Index. This benchmark is composed of common stocks from companies renowned for their generous dividend payouts. VYM offers investors a straightforward way to gain exposure to equities expected to deliver higher-than-average dividend income. The fund adheres to a passively managed, full-replication strategy, meaning it seeks to hold all the securities found within its target index.

Holdings and distributions sourced from Vanguard fund filingsupdated daily

Dividend yield2.84%Inception2006
Expense ratio0.04%1-yr return+12.5%
Assets (AUM)$100.8B5-yr return+55.4%
NAV$160.59Div growth 5yr+3.8%
Holdings589Beta0.74
DistributionQuarterlyIndexFTSE High Dividend Yield Index

Top holdings

View holdings
AVGO logo
BroadcomAVGO
6.9%
JPM logo
JPMorgan ChaseJPM
3.8%
XOM logo
Exxon MobilXOM
2.7%
JNJ logo
Johnson & JohnsonJNJ
2.6%
ABBV logo
AbbVieABBV
1.8%
CSCO logo
Cisco SystemsCSCO
1.8%

Dividends

Full history
Forward yield2.23%
Annual distribution$4.52
Frequencyquarterly
Next ex-date
Years of growth15
5-yr growth+3.8%

Is VYM a good investment?

VYM is an equity ETF that provides exposure to financial services companies. It holds approximately 589 securities and charges an annual expense ratio of 0.04%. Financial Services makes up 22% of the portfolio, so performance leans heavily on that sector.

Strengths

  • Low 0.04% expense ratio, equal to approximately $4.00 a year on every $10,000 invested
  • Dividend has grown ~5% annually over the past decade
  • Spread across 589 holdings, the largest just 6.9% of the fund
  • Lower volatility (beta 0.74) than the broad market

Trade-offs

  • Five-year total return of +79.4% has trailed the S&P 500's +87.2%
  • Ten-year total return of +202.4% has trailed the S&P 500's +317.2%
  • Financial Services is 22% of the fund, so sector shifts move it

This is an analysis of the fund's characteristics, not a recommendation. Whether VYM suits any individual depends on their goals, time horizon, risk tolerance and the rest of their portfolio.

Performance & returns

Full performance
Price returnYTD1 year3 year5 year10 yearSince incept.
VYM+11.0%+12.5%+48.7%+55.4%+123.4%+215.6%
S&P 500 (SPY)+11.7%+15.0%+71.7%+75.5%+256.9%
ETF metrics pulled into a spreadsheet with Wisesheets

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VYM frequently asked questions

VYM charges a 0.04% expense ratio, yields 2.84% and has grown its distribution roughly 5% a year over the past decade. Whether it suits any individual depends on their goals, time horizon, risk tolerance and the rest of their portfolio, and this is not investment advice.

VYM has an expense ratio of 0.04%, which works out to $4.00 per year on a $10,000 investment. That is at the low end for an ETF, so more of the return stays with the investor.

VYM pays dividends quarterly, four times a year. Its distribution has grown roughly 5% per year over the past decade. See the full payment history and ex-dates.

VYM holds 589 positions. Its largest sectors are financial services, technology, healthcare and industrials. The largest position is Broadcom at 6.9% of the fund. See the full holdings page for the largest positions and sector weights.

Similar dividend ETFs

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