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Should Vanguard High Dividend Yield Index Fund ETF Shares (VYM) Be on Your Investing Radar?
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Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Vanguard High Dividend Yield Index Fund ETF Shares (VYM - Free Report) , a passively managed exchange traded fund launched on November 10, 2006.
The fund is sponsored by Vanguard. It has amassed assets over $81.47 billion, making it one of the largest ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 2.29%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector -- about 20.8% of the portfolio. Information Technology and Healthcare round out the top three.
Looking at individual holdings, Broadcom Inc (AVGO) accounts for about 6.92% of total assets, followed by Jpmorgan Chase & Co (JPM) and Exxonmobil Holdings Corp (XOM).
Performance and Risk
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.
The ETF has added roughly 13.56% so far this year and is up roughly 17.52% in the last one year (as of 10/19/2026). In the past 52-week period, it has traded between $138.43 and $167.03.
The ETF has a beta of 0.73 and standard deviation of 12.17% for the trailing three-year period, making it a medium risk choice in the space. With about 611 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard High Dividend Yield Index Fund ETF Shares holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VYM is an outstanding option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Morningstar Value ETF (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $114.85 billion in assets, Vanguard Morningstar Value ETF has $190.22 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.03%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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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Should Vanguard High Dividend Yield Index Fund ETF Shares (VYM) Be on Your Investing Radar?
Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Vanguard High Dividend Yield Index Fund ETF Shares (VYM - Free Report) , a passively managed exchange traded fund launched on November 10, 2006.
The fund is sponsored by Vanguard. It has amassed assets over $81.47 billion, making it one of the largest ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 2.29%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector -- about 20.8% of the portfolio. Information Technology and Healthcare round out the top three.
Looking at individual holdings, Broadcom Inc (AVGO) accounts for about 6.92% of total assets, followed by Jpmorgan Chase & Co (JPM) and Exxonmobil Holdings Corp (XOM).
Performance and Risk
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.
The ETF has added roughly 13.56% so far this year and is up roughly 17.52% in the last one year (as of 10/19/2026). In the past 52-week period, it has traded between $138.43 and $167.03.
The ETF has a beta of 0.73 and standard deviation of 12.17% for the trailing three-year period, making it a medium risk choice in the space. With about 611 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard High Dividend Yield Index Fund ETF Shares holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VYM is an outstanding option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Morningstar Value ETF (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $114.85 billion in assets, Vanguard Morningstar Value ETF has $190.22 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.03%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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.