This Dividend ETF Could Quietly Make You a Multimillionaire Over Time

Core Insights - The Vanguard High Dividend Yield ETF (NYSEMKT: VYM) is a leading dividend-focused ETF with $68.6 billion in assets under management, making it the third-largest in its category [1][3] Performance Metrics - The fund has delivered an average annual return of 9% since its inception in 2006, with annualized returns exceeding 10% over the past one, three, five, and ten years [3][4] - A monthly investment of $500 could grow to $2.1 million in approximately 40 years at a 9% annual return, while a $1,000 monthly investment could reach nearly $2.7 million in 35 years at the same rate [4] Investment Strategy - The ETF focuses on stocks with above-average dividend yields, aiming to generate passive income while also delivering high total returns [5][6] - Historical data indicates that dividend-paying stocks have achieved an average annual total return of 9.2% over the past 50 years, significantly outperforming non-dividend-paying stocks [5] Portfolio Composition - The fund currently holds 565 stocks across various industries, excluding real estate investment trusts (REITs), with significant allocations to large companies known for sustainable and rising dividends [6][7] - Top holdings include Broadcom, JPMorgan Chase, ExxonMobil, Johnson & Johnson, and Walmart, all of which have a history of paying sustainable dividends [6][7]