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VYM: Low-Cost, Low-Risk, Higher-Yield ETF

Published Tue, 16 Apr 2019 07:29:17 -0400 on Seeking Alpha

The Vanguard High Dividend Yield ETF (VYM) is the second largest dividend ETF in the market. VYM is a large-cap equity index fund with a slight tilt towards higher-yield dividend stocks. The fund offers investors higher yields, lower capital appreciation, average total shareholder returns, and lower risk and volatility when compared to the broader equity market, and compares favorably to its peers in most relevant metrics. Lots of benefits, basically no drawbacks. I believe VYM to be a strong investment choice, and particularly well suited for dividend investors looking for broad equity exposure in one fund.
Fund Basics
Sponsor: Vanguard Dividend Yield: 3.07% Expense Ratio: 0.06% Total Returns CAGR 10Y: 15.55% Underlying Index: FTSE High Dividend Yield Index Holdings: 420 Fund Overview
VYM is administered by Vanguard, the second-largest asset manager and ETF provider in the world, and the company which almost single-handedly created and popularized low-cost index funds. I really like Vanguard as a company and as an index fund provider due to their unique company structure. Vanguard operates as a mutual company; it is owned by its own clients/investment funds, so any and all profits are ultimately returned to the company's clients in the form of lower fees. The structure makes for a sleepy, low-cost company, perfect for index funds.
Index funds, including VYM, are perfect for slightly risk-averse investors looking to match the market's rate of return and willing to... Read more