(VYM) Vanguard High Dividend - Ratings and Ratios

Vanguard High Dividend Yield Index Fund ETF Shares (NYSE ARCA: VYM) is a low-cost ETF designed to capture the performance of high-dividend-paying stocks. It follows an indexing strategy, aiming to replicate the returns of its target index by holding a diversified portfolio of dividend-paying companies. The fund invests in common stocks of firms that offer higher-than-average dividends, making it a staple for income-focused investors.

With over $61.8 billion in assets under management, VYM is one of the largest ETFs in its category. It trades on the NYSE ARCA under the ticker symbol VYM and is categorized as a Large Value ETF. The fund is domiciled in the United States and is managed by Vanguard, a leader in index fund management. Its expense ratio of 0.06% makes it one of the most cost-effective options for accessing high-dividend equities.

The ETF tracks an index composed of U.S. companies that consistently pay higher dividends than the broader market. Its portfolio includes around 400 stocks, with a focus on large-cap value companies. Sectors like Utilities, Consumer Staples, and Financials dominate the funds holdings, reflecting the stability often associated with high dividend payouts. The funds weighted average market capitalization is in the large-cap range, aligning with its focus on established dividend-paying companies.

For investors seeking predictable income and exposure to stable, cash-generating businesses, VYM is a solid choice. Its low turnover and passive management approach ensure that it remains an efficient way to access the high-dividend segment of the U.S. equity market. As with any investment, understanding the underlying index and its methodology is key to aligning it with your portfolio goals.