Vanguard High Dividend Yield Fund
VYM Expenses: 0.08%
VHDYX Expenses: 0.15%
VHDYX Minimum Investment: $3,000
Dividend Yield: 3%
If you’re looking for a fund that actually offers higher-than-average yield, Vanguard has you covered via its Vanguard High Dividend Yield Fund (VHDYX) and Vanguard High Dividend Yield ETF (VYM).
While the expenses are different, they’re otherwise the same fund. Vanguard High Dividend Yield targets companies that pay higher dividends than their peers, but does so without stretching much outside the large-cap space. Its roughly 400 holdings boast a median market capitalization of just more than $125 billion, so it’s jam-packed with blue chips such as Microsoft, Johnson & Johnson (JNJ) and Exxon Mobil (XOM).
The result is a fund that might lag a bit on the capital appreciation side at times, given a decided lack of growth stocks, but whose better-than-average yield and stability should make up for it, especially for income-focused investors.
Check out VHDYX’s provider page here, and VYM’s provider page here.