Average Daily Volume
1.56M
Fund Overview
The Vanguard High Dividend Yield ETF (VYM) is an exchange-traded fund that seeks to track the performance of the FTSE High Dividend Yield Index. This index consists of U.S. companies that are forecasted to pay above-average dividends. VYM provides investors with exposure to large-cap, dividend-paying stocks across various sectors, making it a popular choice for income-focused investors. The fund is known for its low expense ratio and broad diversification, which helps mitigate individual stock risk while providing steady dividend income. VYM is suitable for investors seeking a balance between income generation and long-term capital appreciation.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
Yes
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 2.53 %
- Currency Hedged
-
No
- Portfolio Turnover
-
13 %
- Dividend Date
-
Why Invest in the VYM ETF?
Potential Benefits
- Provides exposure to high-quality, dividend-paying U.S. stocks with a history of stable payouts.
- Offers a low expense ratio (0.06% as of 2025), making it cost-effective for long-term investors.
- Diversified across multiple sectors, reducing concentration risk compared to single-stock investments.
- Historically provides a steady stream of dividend income, appealing to retirees and income-focused investors.
- Tracks a well-established index (FTSE High Dividend Yield Index), ensuring transparency and consistency in stock selection.
Potential Risks
- Dividend-paying stocks may underperform growth stocks during strong bull markets.
- Sector concentration risk, particularly in financials and utilities, which make up a significant portion of the fund.
- Dividend payments are not guaranteed and can be cut or suspended by underlying companies.
- Interest rate sensitivity—rising rates may make dividend stocks less attractive compared to fixed-income alternatives.
- Market risk—like all equity ETFs, VYM is subject to market volatility and potential capital losses.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+4.5%
|
+3.4%
|
-3.9%
|
+6.1%
|
+1.3%
|
-0.1%
|
+2.5%
|
+1.2%
|
-4.8%
|
+0.8%
|
-
|
-
|
| 2025 |
+3.7%
|
+1.3%
|
-3.2%
|
-3.5%
|
+3.7%
|
+4.0%
|
+0.6%
|
+3.8%
|
+1.9%
|
-0.3%
|
+3.5%
|
-0.7%
|
| 2024 |
+0.8%
|
+2.6%
|
+5.4%
|
-3.7%
|
+3.0%
|
-0.3%
|
+4.8%
|
+2.4%
|
+1.3%
|
-0.3%
|
+5.4%
|
-4.6%
|
| 2023 |
+2.4%
|
-3.5%
|
-0.6%
|
+1.3%
|
-5.1%
|
+5.5%
|
+4.0%
|
-2.4%
|
-3.4%
|
-2.8%
|
+6.3%
|
+5.6%
|
| 2022 |
-0.5%
|
-1.5%
|
+2.8%
|
-4.2%
|
+3.5%
|
-7.9%
|
+4.6%
|
-2.5%
|
-7.9%
|
+12.2%
|
+6.3%
|
-3.5%
|
| 2021 |
-0.6%
|
+4.6%
|
+6.9%
|
+2.6%
|
+3.0%
|
-1.2%
|
+0.6%
|
+2.1%
|
-3.2%
|
+4.9%
|
-2.3%
|
+6.8%
|
| 2020 |
-2.5%
|
-9.7%
|
-13.6%
|
+10.3%
|
+2.8%
|
-0.8%
|
+3.1%
|
+3.2%
|
-2.6%
|
-1.7%
|
+12.3%
|
+3.4%
|
| 2019 |
+6.1%
|
+3.8%
|
+0.5%
|
+2.8%
|
-6.3%
|
+6.6%
|
+0.7%
|
-2.1%
|
+3.9%
|
+1.0%
|
+2.3%
|
+3.0%
|
| 2018 |
+4.1%
|
-4.7%
|
-2.2%
|
+0.1%
|
+1.6%
|
-0.3%
|
+4.1%
|
+1.1%
|
+0.4%
|
-4.4%
|
+3.6%
|
-8.6%
|
| 2017 |
0.0%
|
+3.6%
|
-0.3%
|
-0.1%
|
+0.4%
|
+1.1%
|
+1.6%
|
-0.2%
|
+3.0%
|
+1.7%
|
+3.1%
|
+1.5%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
AVGO
|
BROADCOM INC |
4.9 % |
|
JPM
|
JPMORGAN CHASE & CO |
4.1 % |
|
XOM
|
EXXON MOBIL CORP |
2.7 % |
|
WMT
|
WALMART INC |
2.3 % |
|
PG
|
PROCTER & GAMBLE CO |
2.2 % |
|
JNJ
|
JOHNSON & JOHNSON |
2.2 % |
|
HD
|
THE HOME DEPOT INC |
2.1 % |
|
ABBV
|
ABBVIE INC |
2.0 % |
|
BAC
|
BANK OF AMERICA CORP |
1.7 % |
|
KO
|
COCA-COLA CO |
1.5 % |
Top 10 holdings shown, out of 530 total holdings.
Related ETFs: VYM vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
VYM tracks the FTSE High Dividend Yield Index, which selects U.S. stocks based on forecasted dividend yield, excluding REITs. The index is market-cap-weighted, meaning larger companies with higher yields have greater influence. The fund holds over 400 stocks, primarily common shares of large-cap U.S. firms. VYM is passively managed and rebalances quarterly to align with index changes. Its focus on dividend sustainability (not just high yield) helps avoid 'dividend traps'—companies with unsustainable payouts.
Frequently Asked Questions
Does VYM include international stocks?
No, VYM focuses exclusively on U.S.-listed companies with high dividend yields. Investors seeking global dividend exposure might consider funds like VYMI (Vanguard International High Dividend Yield ETF).
How often does VYM pay dividends?
VYM distributes dividends quarterly, typical for most dividend-focused ETFs. The exact dates vary slightly each year.
Is VYM a good ETF for retirement income?
Yes, VYM's focus on stable, high-yield stocks makes it a popular choice for retirees seeking consistent income. However, investors should diversify with other asset classes to mitigate equity risk.
What is VYM's largest sector allocation?
As of 2025, financials and healthcare are VYM's top sectors, reflecting their historically strong dividend payouts.
Industry Overview
VYM (Vanguard High Dividend Yield ETF) invests in U.S. large-cap stocks with above-average dividend yields, making it part of the dividend-focused ETF category. Dividend ETFs are popular among investors seeking income, especially in low-interest-rate environments. The fund's sector exposure includes financials, healthcare, and consumer staples, which traditionally offer stable dividends. Dividend investing can provide downside protection during market downturns but may lag growth-oriented strategies in bull markets. VYM's low-cost structure and broad diversification make it a core holding for income portfolios.
Alternative Comparison
Compared to SCHD (Schwab U.S. Dividend Equity ETF), VYM offers broader diversification with more holdings but slightly lower dividend growth. SCHD uses a stricter quality screen (e.g., cash flow and dividend history), while VYM captures a wider range of high-yield stocks. Unlike HDV (iShares Core High Dividend ETF), which emphasizes dividend sustainability metrics, VYM takes a simpler yield-focused approach. Both VYM and SPYD (SPDR Portfolio S&P 500 High Dividend ETF) target high yields, but SPYD is more concentrated in the highest-yielding S&P 500 stocks, potentially increasing risk.
Issuer Overview
Vanguard is one of the largest and most trusted ETF issuers globally, known for its low-cost index funds and investor-first philosophy. The company pioneered passive investing and remains a leader in expense ratio competitiveness. Vanguard's ETFs, including VYM, are structured to minimize tracking error and maximize tax efficiency, making them ideal for long-term investors.
Conclusion
VYM is a solid choice for investors seeking diversified exposure to high-dividend U.S. stocks with low fees. Its broad portfolio and Vanguard's reputable management make it a core holding for income strategies. While it may not outperform growth ETFs in bullish markets, its focus on stable dividends appeals to risk-averse investors. Those prioritizing dividend growth might consider SCHD, but VYM remains a top pick for pure yield seekers.
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