Core Viewpoint - The Vanguard High Dividend Yield ETF is positioned as an ideal long-term investment option, focusing on high-yielding dividend stocks that provide solid returns with lower volatility compared to the broader market [2][10][12] Fund Overview - The Vanguard High Dividend Yield ETF aims to track the FTSE High Dividend Yield Index, which includes nearly 580 companies that pay high dividends [3] - The fund has a low expense ratio of 0.06%, costing investors approximately $0.60 annually for every $1,000 invested [4] Dividend Performance - The ETF currently offers a 2.5% dividend yield, significantly higher than the S&P 500's yield of less than 1.2% [5][6] - An investment of $1,000 in the ETF would generate about $25 in annual dividend income, compared to less than $12 from a similar investment in an S&P 500 index fund [6] Historical Context - Dividend-paying stocks have historically been strong wealth creators, with reinvested dividends significantly increasing investment value over time [7] - Since 1973, average dividend stocks in the S&P 500 have delivered a 9.2% annual total return with lower volatility, while non-dividend stocks have returned only 4.3% annually [8] Performance of High-Yield Stocks - Companies with higher dividend payout ratios tend to outperform the market over 60% of the time, indicating a correlation between higher yields and better long-term performance [9] - The Vanguard High Dividend Yield ETF holds companies that have historically provided above-average returns with less volatility, making it a strong candidate for long-term investment [10]