Vanguard's VYM ETF: Top Choice for Passive Income with 2.5% Yield
Vanguard's High Dividend Yield ETF (VYM) stands out as a top choice for passive income investors. With a 2.5% dividend yield and an impressively low 0.06% expense ratio, it offers a simple way to generate passive income.
VYM holds a diverse portfolio of about 582 U.S. stocks, focusing on companies with high dividend yields, excluding REITs. Notable holdings include JPMorgan Chase, Exxon Mobil, Johnson & Johnson, and Walmart. This diversification reduces risk and ensures a steady income stream.
The fund tracks the FTSE High Dividend Yield Index and is passively managed, ensuring low turnover and minimal capital gains distributions. Despite its focus on high yields, VYM also delivers strong total returns over the long term, making it an attractive choice for both income and capital appreciation.
Vanguard High Dividend Yield ETF (VYM) offers a compelling combination of high dividend yield, low expenses, and strong long-term performance. Its diversified portfolio and passive management style make it an ideal choice for investors seeking passive income and capital appreciation.
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