Want $10,000 in Passive Income? This Vanguard ETF Could Be Your Ticket to Making It Happen.

Core Insights - The Vanguard High Dividend Yield ETF (VYM) is highlighted as a strong option for generating passive income through dividends, with over $70 billion in assets under management and a history of consistent returns [4][5] - To achieve $10,000 in passive income, an investment of approximately $333,334 is required, assuming a stable average dividend yield of 3% [7][10] - The ETF is diversified across major U.S. sectors, with significant representation in financials, technology, and healthcare, making it less top-heavy compared to other indexes like the S&P 500 [5][6] Investment Details - The Vanguard High Dividend Yield ETF has been operational since November 2006 and tracks the FTSE High Dividend Yield Index, focusing on companies with high forecast dividends [4] - The top five sectors represented in the ETF are financials (21%), technology (14.3%), industrials (12.9%), healthcare (12.8%), and consumer discretionary (9.7%) [5] - The ETF's top holdings include Broadcom (8.69%), JPMorgan Chase (4.06%), and ExxonMobil (2.34%) among others [5][6] Dividend Payouts - Recent dividend payouts from the ETF have been $0.84 (November), $0.86 (June), $0.85 (March), and $0.96 (December 2024), indicating variability in payouts [6] - The ETF has averaged an 11.5% total return over the past decade, which can significantly impact the time required to reach the investment goal of $333,000 [12] Investment Strategy - Consistent monthly investments can lead to reaching the target investment amount over time; for example, investing $500 monthly could achieve the goal in about 19 years [12] - The power of compound earnings is emphasized, where returns on investments generate additional returns, enhancing growth over time [10][13]