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VYM - ETF AI Analysis

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VYM

Vanguard High Dividend Yield Index ETF (VYM)

Rating:71Outperform
Price Target:
VYM, the Vanguard High Dividend Yield Index ETF, has a solid overall rating driven by strong, diversified leaders like Broadcom and Johnson & Johnson, which benefit from robust financial performance, positive earnings sentiment, and strategic growth in areas like AI and healthcare. Additional support comes from stable blue chips such as Exxon Mobil and Cisco, though some holdings like AbbVie and Home Depot face issues such as financial stability concerns, high valuation, and weaker technical trends. The main risk factor is exposure to companies with higher leverage or premium valuations, which could weigh on returns if growth or market conditions disappoint.
Positive Factors
Strong Overall Performance
The ETF has shown solid gains over the year and in recent months, indicating healthy momentum for investors.
Leading Dividend-Paying Holdings
Several of the largest positions, such as Broadcom, Exxon Mobil, Caterpillar, and Cisco, have delivered strong returns, helping support the fund’s results.
Low Expense Ratio
The fund’s very low fee means more of the investment returns stay in investors’ pockets instead of going to costs.
Broad Sector Diversification
Exposure across many sectors, including financials, technology, health care, industrials, and energy, helps reduce the impact of weakness in any single industry.
Large Asset Base
The ETF manages a very high level of assets, which can support liquidity and trading efficiency for everyday investors.
Negative Factors
Heavy U.S. Concentration
With almost all holdings in U.S. companies, the fund offers very limited geographic diversification and is highly tied to the U.S. market.
Top Holdings Concentration Risk
A small group of large positions makes up a meaningful share of the portfolio, increasing the impact if any of these companies run into trouble.
Mixed Performance Among Top Stocks
While many key holdings are performing well, some, like Home Depot, have been weak recently, which can drag on overall returns.

VYM vs. SPDR S&P 500 ETF (SPY)

VYM Summary

Vanguard High Dividend Yield Index ETF (VYM) is a fund that tracks the FTSE Custom High Dividend Yield index, focusing on large U.S. companies that pay above-average dividends. It owns many well-known names such as Broadcom and JPMorgan Chase, spread across sectors like financials, technology, health care, and energy. Someone might invest in VYM to build a simple, diversified portfolio that aims to provide regular income plus long-term growth potential. A key risk is that stock prices and dividend payments can go up and down with the overall market, so your investment value is not guaranteed.
How much will it cost me?The expense ratio for the Vanguard High Dividend Yield Index ETF (VYM) is 0.06%, which means you’ll pay $0.60 per year for every $1,000 invested. This is much lower than the average expense ratio for ETFs because it is passively managed, tracking an index rather than relying on active stock picking.
What would affect this ETF?The Vanguard High Dividend Yield Index ETF (VYM) could benefit from stable or rising interest rates, as financial sector holdings like JPMorgan Chase and Bank of America may see improved profitability. Additionally, strong consumer spending and advancements in technology could positively impact top holdings such as Walmart and Broadcom. However, economic slowdowns or regulatory changes in healthcare and energy sectors could negatively affect companies like Johnson & Johnson and Exxon Mobil, while rising inflation may challenge consumer defensive stocks like Procter & Gamble.

VYM Top 10 Holdings

VYM leans heavily on a few big U.S. dividend workhorses, with Broadcom as the largest holding but recently losing steam, which has put a mild drag on returns from the tech side. In contrast, old-guard names like Exxon Mobil and Chevron are rising, helping the fund ride the energy wave. JPMorgan and Bank of America are steady engines in its sizable financials sleeve, while Johnson & Johnson and AbbVie keep the health care core humming. Overall, it’s a U.S.-centric, high-dividend mix, diversified but with noticeable tilts toward financials, tech, and energy.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Broadcom7.34%$7.29B$1.75T24.01%
76
Outperform
JPMorgan Chase3.81%$3.79B$950.62B18.64%
72
Outperform
Exxon Mobil2.62%$2.61B$644.38B37.12%
74
Outperform
Johnson & Johnson2.50%$2.49B$645.95B51.29%
78
Outperform
Cisco Systems1.86%$1.85B$433.28B59.11%
77
Outperform
AbbVie1.80%$1.79B$451.46B21.42%
66
Neutral
Bank of America1.66%$1.65B$435.79B22.82%
72
Outperform
UnitedHealth1.52%$1.51B$352.71B26.81%
72
Outperform
Caterpillar1.50%$1.49B$367.85B90.97%
76
Outperform
Chevron1.48%$1.47B$398.83B25.69%
71
Outperform

VYM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
162.43
Positive
100DMA
159.16
Positive
200DMA
152.69
Positive
Market Momentum
MACD
0.38
Positive
RSI
44.73
Neutral
STOCH
12.66
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VYM, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 165.21, equal to the 50-day MA of 162.43, and equal to the 200-day MA of 152.69, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 44.73 is Neutral, neither overbought nor oversold. The STOCH value of 12.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VYM.

VYM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$83.10B0.04%
71
Outperform
$112.01B0.06%
74
Outperform
$23.80B0.38%
70
Neutral
$21.97B0.35%
71
Outperform
$15.42B0.08%
72
Outperform
$10.48B0.15%
70
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VYM
Vanguard High Dividend Yield Index ETF
164.29
29.39
21.79%
SCHD
Schwab US Dividend Equity ETF
DVY
iShares Select Dividend ETF
SDY
SPDR S&P Dividend ETF
HDV
iShares Core High Dividend ETF
FDVV
Fidelity High Dividend ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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