The Smartest ETF to Buy With $10,000 Right Now

Core Viewpoint - The Vanguard High Dividend Yield ETF (VYM) is positioned to attract investors due to lower interest rates, making its high yield more appealing [1][2]. Group 1: Fund Overview - The Vanguard High Dividend Yield ETF holds over 500 stocks, many of which are part of the S&P 500, and offers yields significantly higher than the S&P 500 average of 1.14% [2]. - The fund's trailing dividend yield is 2.49%, which is more than double that of the S&P 500, indicating a strong income potential for investors [3]. - A $10,000 investment in the fund would have generated $249 in income over the past year [3]. Group 2: Investment Strategy - The ETF includes a diversified mix of sectors such as technology, healthcare, financial services, and consumer goods, similar to an index fund [3][4]. - The top holdings in the ETF include Broadcom, JPMorgan Chase, Walmart, Home Depot, and UnitedHealth Group, showcasing a blend of quality stocks [3][4]. Group 3: Risk and Return - While not designed to outperform the S&P 500, the VYM ETF provides a low-risk option for boosting passive income without the need to select individual stocks [7]. - The fund's expense ratio is minimal at 0.06%, which translates to a fee of $6 for every $1,000 invested, making it a cost-effective investment choice [6].