VYM - ETF AI Analysis
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Vanguard High Dividend Yield Index ETF (VYM)
VYM, the Vanguard High Dividend Yield Index ETF, earns a solid overall rating thanks to several strong, diversified holdings like Merck, Johnson & Johnson, Broadcom, and Cisco, which combine robust financial performance, growth potential, and positive earnings outlooks. The fund is somewhat held back by names such as AbbVie and Chevron, where high valuations, leverage, and weaker cash flow trends introduce more uncertainty. The main risk factor is its meaningful exposure to a few large positions and sectors, which can increase volatility if those companies or industries face setbacks.
VYM vs. SPDR S&P 500 ETF (SPY)
- AUM
- 81.28B
- Region
- North America
- Expense Ratio
- 0.04%
- Beta
- 0.70
- Issuer
- Vanguard
- Inception Date
- Nov 10, 2006
- Dividend Yield
- 2.29%
- Asset Class
- Equity
- Index Tracked
- FTSE Custom High Dividend Yield
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’s story right now is a tug-of-war between powerhouse dividend payers and a few names losing steam. Broadcom has been lagging lately, so its sizable weight is a mild headwind, while Bank of America and JPMorgan are also soft, keeping the big financials from pulling their full weight. On the brighter side, Exxon, Chevron, and Merck have been rising, giving the fund a solid boost from energy and healthcare. Overall, it’s a U.S.-focused, high-dividend mix with no single stock dominating, but clear tilts toward financials and mature blue-chip sectors.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 AVGO | Broadcom | 6.94% | $6.65B | $1.57T | -7.17% | 76Outperform |
 JPM | JPMorgan Chase | 3.76% | $3.60B | $903.04B | 13.79% | 72Outperform |
 XOM | Exxon Mobil | 2.85% | $2.73B | $735.95B | 61.77% | 74Outperform |
 JNJ | Johnson & Johnson | 2.71% | $2.59B | $615.87B | 33.02% | 78Outperform |
 ABBV | AbbVie | 1.97% | $1.88B | $504.37B | 25.81% | 66Neutral |
 CSCO | Cisco Systems | 1.81% | $1.73B | $423.39B | 55.43% | 77Outperform |
 CVX | Chevron | 1.61% | $1.54B | $444.53B | 48.30% | 71Outperform |
 CAT | Caterpillar | 1.56% | $1.50B | $335.91B | 35.09% | 76Outperform |
 MRK | Merck & Company | 1.53% | $1.46B | $360.08B | 73.92% | 80Outperform |
 BAC | Bank of America | 1.50% | $1.44B | $354.65B | 1.57% | 72Outperform |
VYM Technical Analysis
Price Trends
Market Momentum
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 160.25 is above the 20-day moving average (MA) of 157.91, below the 50-day MA of 161.07, and above the 200-day MA of 154.86, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 57.02 is Neutral, neither overbought nor oversold. The STOCH value of 85.86 is Negative, 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 |
|---|---|---|---|---|---|
| VYM | $160.25 | $178.00(11.08% Upside) | $81.28B | 0.04% | 72Outperform |
 SCHD | $34.35 | $37.79(10.00% Upside) | $114.14B | 0.06% | 74Outperform |
 DVY | $159.17 | $175.95(10.54% Upside) | $23.02B | 0.38% | 70Neutral |
 SDY | $155.06 | $170.50(9.96% Upside) | $21.37B | 0.35% | 71Outperform |
 HDV | $30.04 | $32.20(7.19% Upside) | $15.40B | 0.08% | 70Outperform |
 FDVV | $61.68 | $70.78(14.75% Upside) | $10.38B | 0.15% | 70Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| VYM | Vanguard High Dividend Yield Index ETF | 160.25 | 22.40 | 16.25% | |
| SCHD | Schwab US Dividend Equity ETF | 34.35 | 8.27 | 31.73% | |
| DVY | iShares Select Dividend ETF | 159.17 | 22.75 | 16.67% | |
| SDY | SPDR S&P Dividend ETF | 155.06 | 18.53 | 13.57% | |
| HDV | iShares Core High Dividend ETF | 30.04 | 6.28 | 26.45% | |
| FDVV | Fidelity High Dividend ETF | 61.68 | 7.31 | 13.44% |
This 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.