"During these uncertain times, with further fallout from tariffs still threatening to rear its head, dividend income is more valuable than ever, and one particular dividend ETF , Vanguard's High Dividend Yield Index Fund ETF Shares (VYM) fund, moves to the front of the line. As the name suggests, this ETF targets large-cap domestic stocks that are on the radar to pay higher-than-average dividend yields based on forward dividend yield."
"Using the FTSE High Dividend Yield Index as a benchmark, the VYM ETF pays a dividend yield of 2.5%, compared with the S&P 500's current average dividend yield of a much smaller 1.2%. For investors who are looking for quarterly checks in the mail, the VYM ETF pays dividends like clockwork, ensuring passive income even during times of heightened economic uncertainty."
"Additionally, VYM is on pace for a 10.4% year-to-date return, while over the past 12 months it has delivered an even juicier 12%, keeping pace with a broader stock market that has been generating double-digit percentage annual returns of late. With a super low expense ratio of 0.06%, compared with an average in this fund category of 0.87%, investors are able to pocket much of those profits."
Vanguard's VYM ETF focuses on large-cap U.S. stocks selected for higher-than-average forward dividend yields, using the FTSE High Dividend Yield Index as its benchmark. The fund yields about 2.5%, above the S&P 500's roughly 1.2%, and delivers regular quarterly distributions. Year-to-date performance is around 10.4% with a 12-month return near 12%, comparable to recent broad market gains. The expense ratio is a low 0.06%, significantly below category averages, helping investors retain more returns. VYM offers exposure to nearly 600 stocks across sectors, combining dividend income, diversification, and low costs for income-focused portfolios.
Read at 24/7 Wall St.
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