Provides a convenient way to track the performance of stocks that are forecasted to have above-average dividend yields.Seeks to track the performance of the FTSE® High Dividend Yield Index, which measures the investment return of common stocks of companies characterized by high dividend yields.When I went to Vanguard's fund information page I read that VYM: How is it defined? How are stocks selected, added and deleted? SCHD does not describe itself as a high dividend ETF, but, instead, as one that, 'Tracks an index focused on the quality and sustainability of dividends.' So that made me wonder about the high dividend index that VYM tracks. I was puzzled that SCHD had a higher dividend yield than VYM. I have included the Vanguard S&P 500 Index ETF ( VOO) for reference, to make it clear how all these dividend-focused ETFs perform compared to the S&P 500 which many people insist is 'the market.'Īs you can see VYM (the orange line) has been in the middle of the pack through the period when the Fed began cutting rates again and sent many income-seekers fleeing into dividend paying stocks. The graph below displays the relative performance of these funds over the past three years. SDY's is 3.0% and it reports a 12 month trailing yield of 3.06%. Only dividend growth oriented ETFs like the SPDR® S&P Dividend ETF ( SDY) have lower SEC yields. The equal weighted Invesco S&P Ultra Dividend Revenue ETF ( RDIV) has an even higher SEC Yield at 5.33% with a 12 month trailing yield of 4.85%. iShares Select Dividend ETF ( DVY) also has a higher 12 month trailing yield at 4.39% Dividend Equity ETF ( SCHD), which I wrote about last month in another article, which does not market itself as a high dividend ETF.Īnother competitor, iShares Core High Dividend ETF ( HDV), does not report an SEC Yield, but its 12 month trailing yield is higher at 4.25%. This SEC yield is actually lower than the 3.85% SEC yield of the Schwab U.S. Vanguard reports its SEC Yield as of Sept 30 as 3.59%. VYM's trailing 12 month dividend yield is variously reported at 3.48% (Seeking Alpha) and 3.55% (Morningstar). For Actual High Yield You Will Have to Go Elsewhereīut a quick look at VYM's summary page told me that despite its name, VYM's dividend could only be considered 'high' in the strange Alice in Wonderland interest rate rabbit hole we find ourselves in. I have been putting off looking at it, in my search for investments to replace the income I used to get from CDs, because I have learned, the hard way, that 'high dividend' often means 'high risk.' I'm looking for safety along with yield. The Vanguard High Dividend Yield ETF ( NYSEARCA: VYM) is, according to ETF.com, the most popular dividend-focused ETF.

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