Report: Apple sets aside $1B for original content >>> READ MORE

3 ETF Winners for Retirement

Spread out your risk and put a little cash in your pocket

      View All  

Vanguard High Dividend Yield Index ETF

Vanguard mutual funds 401(k)YTD Performance: +11.73%
Yield: 2.96%
Expense Ratio: 0.1%

Vanguard’s High Dividend Yield Index ETF (NYSE:VYM) is similar to the SPDR S&P 500 ETF in that it bunches hundreds of blue-chip companies together, but its specific purpose is investing in companies with higher dividend yields — and as a result, you’re looking at nearly a full percentage point more in yield than the SPY. And its year-to-date performance helps to show that you’re not necessarily sacrificing capital gains for that extra income.

Top holdings are fairly similar to the SPDR S&P 500 ETF — you’ve got Exxon, as well as Chevron (NYSE:CVX) and Microsoft (NASDAQ:MSFT), among others — though some of those top holdings carry significantly more weight (and thus, the fund is more susceptible to moves in those stocks) than they do in the SPY.

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC