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Is Vanguard High Dividend Yield Index Fund ETF Shares (VYM) a Strong ETF Right Now?
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The Vanguard High Dividend Yield Index Fund ETF Shares (VYM - Free Report) was launched on 11/10/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Vanguard. VYM has been able to amass assets over $76.82 billion, making it one of the largest ETFs in the Style Box - Large Cap Value. VYM seeks to match the performance of the FTSE High Dividend Yield Index before fees and expenses.
The FTSE High Dividend Yield Index which is consists of common stocks of companies that pay dividends that generally are higher than average.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.04% for this ETF, which makes it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 2.26%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
For VYM, it has heaviest allocation in the Financials sector --about 20.4% of the portfolio --while Information Technology and Industrials round out the top three.
Taking into account individual holdings, Broadcom Inc (AVGO) accounts for about 6.27% of the fund's total assets, followed by Jpmorgan Chase & Co (JPM) and Exxon Mobil Corp (XOM).
Performance and Risk
The ETF return is roughly 9.05% and is up roughly 23.99% so far this year and in the past one year (as of 05/14/2026), respectively. VYM has traded between $127.09 and $157.19 during this last 52-week period.
The fund has a beta of 0.73 and standard deviation of 12.40% for the trailing three-year period, which makes VYM a medium risk choice in this particular space. With about 620 holdings, it effectively diversifies company-specific risk .
Alternatives
Vanguard High Dividend Yield Index Fund ETF Shares is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value Index Fund ETF Shares (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $91.04 billion in assets, Vanguard Value Index Fund ETF Shares has $174.88 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Vanguard High Dividend Yield Index Fund ETF Shares (VYM) a Strong ETF Right Now?
The Vanguard High Dividend Yield Index Fund ETF Shares (VYM - Free Report) was launched on 11/10/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Vanguard. VYM has been able to amass assets over $76.82 billion, making it one of the largest ETFs in the Style Box - Large Cap Value. VYM seeks to match the performance of the FTSE High Dividend Yield Index before fees and expenses.
The FTSE High Dividend Yield Index which is consists of common stocks of companies that pay dividends that generally are higher than average.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.04% for this ETF, which makes it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 2.26%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
For VYM, it has heaviest allocation in the Financials sector --about 20.4% of the portfolio --while Information Technology and Industrials round out the top three.
Taking into account individual holdings, Broadcom Inc (AVGO) accounts for about 6.27% of the fund's total assets, followed by Jpmorgan Chase & Co (JPM) and Exxon Mobil Corp (XOM).
Performance and Risk
The ETF return is roughly 9.05% and is up roughly 23.99% so far this year and in the past one year (as of 05/14/2026), respectively. VYM has traded between $127.09 and $157.19 during this last 52-week period.
The fund has a beta of 0.73 and standard deviation of 12.40% for the trailing three-year period, which makes VYM a medium risk choice in this particular space. With about 620 holdings, it effectively diversifies company-specific risk .
Alternatives
Vanguard High Dividend Yield Index Fund ETF Shares is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value Index Fund ETF Shares (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $91.04 billion in assets, Vanguard Value Index Fund ETF Shares has $174.88 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.