Is VYM Still King of Passive Income ETFs, or Is the Throne at Risk?
Vanguard’s High Dividend Yield ETF delivers reliability—but today’s investors are asking: are there better options?
Vanguard High Dividend Yield ETF (VYM, NYSE Arca) trades today at approximately $135.81, up modestly after a stable week in the high‑dividend space. As a widely respected fund with over $70 billion AUM, VYM focuses on U.S. large‑caps with solid yields—currently around 2.9–3.0%—and an ultra‑low fee of just 0.06%, beating many peers on cost and diversification.
The secret behind VYM’s popularity? Broad exposure to more than 550 dividend‑paying companies, heavily weighted in financials and energy sectors. Its top holdings include heavyweights like Broadcom (AVGO), JPMorgan Chase (JPM), and Exxon Mobil (XOM). This mix makes VYM a go-to choice for investors seeking dependable, hands-off income.
But is it really the best? Critics argue that while VYM delivers yield, it leans toward a passive, yield-first strategy without screening for consistent dividend growth or financial strength. Alternatives like Schwab U.S. Dividend Equity ETF (SCHD, NYSE Arca) filter for quality metrics—such as dividend history and free cash flow—potentially offering stronger total returns despite slightly narrower diversification.
Even analysts rank VYM among top‑tier dividend ETFs, especially for those seeking stability during volatile markets. Still, the trade‑off is clear: VYM offers broad, reliable yield with minimal fees, while funds like SCHD and HDV (iShares Core High Dividend ETF) appeal to investors prioritizing dividend quality and growth.
At the end of the day, VYM stands as a stalwart in the passive‑income ETF arena. For those desiring a no‑fuss, diversified income stream, it remains hard to beat. But if you're hunting for dividend growth and financial discipline, a blend with funds like SCHD might offer a sharper edge. As markets shift and interest rates settle, viewing VYM alongside its peers could be the smart play.
Vanguard High Dividend Yield Indx ETF (VYM) is a fund in the USA market. The price is 135.81 USD currently with a change of 0.73 (0.54%) from the previous close. The intraday high is 135.99 USD and the intraday low is 135.17 USD. The latest open price was 135.32 USD and the intraday volume is 859,952.