VYM ETF

The Vanguard High Dividend Yield ETF (VYM) started on November 10, 2006, and is a passively managed fund that aims to provide wide access to the Large Cap Value part of the US stock market.

It's important to balance yield, safety, and growth for a secure retirement income to prevent issues like not having enough income, cuts in dividends, and the impact of inflation. The Vanguard High Dividend Yield Index Fund ETF Shares is a solid choice because it has low fees, steady dividend growth, and a diverse portfolio of reliable companies. However, the yield of the VYM ETF is somewhat low.

Vanguard's approach of low fees and shareholder ownership is designed to boost investor returns by reducing management costs, which helps with long-term growth. VYM provides a stable and diversified investment option that may have lower capital gains but offers better capital protection than the S&P 500. With its high liquidity and large assets, VYM is a dependable option for making big trades without greatly affecting the price.

With the possibility of interest rate cuts, fixed income investors might be considering whether they should invest in higher-risk high yield bonds. Nevertheless, even those who prefer to avoid risk can benefit from a risk management approach offered by funds like the Vanguard High Dividend Yield Index Fund ETF Shares (VYM).

A smart beta exchange traded fund, the Vanguard High Dividend Yield ETF (VYM) debuted on 11/10/2006, and offers broad exposure to the Style Box - Large Cap Value category of the market.

The Vanguard High Dividend Yield ETF (NYSE: VYM) is an exchange-traded fund that tracks the FTSE High Dividend Yield Index.

In this article, I will show you how to build a dividend portfolio that holds VYM as a core element while enhancing the ETF with 10 individually selected companies. By including these companies, the Strategically Enhanced VYM Plus 10 Portfolio offers investors a superior mix of dividend income and dividend growth. At the same time, it provides investors with an additional diversification across sectors and a further optimized risk-reward profile when compared to only investing in VYM.

Building a portfolio with high-yield ETFs and CEFs simplifies the passive income snowball construction process considerably. This article discusses how to combine Vanguard High Dividend Yield Index Fund ETF Shares with just two other funds to build a well-diversified passive income snowball for retirement. The VYM fund pays out a 7% weighted average yield — most of which is paid out monthly — and also delivers dividend growth.

VYM is a low-cost dividend ETF offering an expected 2.74% dividend yield. Historically, it's delivered average returns in the large-cap value category because it's well-balanced on all factors. Low portfolio turnover and strong diversification are additional reasons to own VYM, especially for passive investors not interested in following the sometimes-eventful reconstitution of competitors like SCHD. VYM also holds an advantage over its peers in dividend safety. Its payout ratio is sufficiently low, and its constituents have paid dividends for nearly 28 years on average.