Should Vanguard High Dividend Yield ETF (VYM) Be on Your Investing Radar?

Core Viewpoint - The Vanguard High Dividend Yield ETF (VYM) is a significant player in the Large Cap Value segment of the US equity market, with assets exceeding $61.89 billion, making it one of the largest ETFs in this category [1] Group 1: Large Cap Value Characteristics - Large cap companies typically have a market capitalization above $10 billion, offering more stability and predictable cash flows compared to mid and small cap companies [2] - Value stocks are characterized by lower than average price-to-earnings and price-to-book ratios, and they have historically outperformed growth stocks in most markets, although they may lag in strong bull markets [3] Group 2: Costs and Performance - The ETF has an annual operating expense ratio of 0.06%, positioning it as one of the least expensive options in the market, with a 12-month trailing dividend yield of 2.62% [4] - VYM aims to match the performance of the FTSE High Dividend Yield Index, having gained approximately 6.84% year-to-date and about 16.85% over the past year, with a trading range of $114.78 to $136.66 in the last 52 weeks [7] Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Financials sector, comprising about 21.8% of the portfolio, followed by Information Technology and Industrials [5] - Broadcom Inc (AVGO) represents around 6.44% of total assets, with Jpmorgan Chase & Co (JPM) and Exxon Mobil Corp (XOM) also among the top holdings [6] Group 4: Risk and Alternatives - VYM has a beta of 0.78 and a standard deviation of 14.15% over the trailing three-year period, indicating a medium risk profile [8] - Alternatives to VYM include the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV), with SCHD having $69.84 billion in assets and VTV at $138.99 billion, both with competitive expense ratios [10]