VYM: Vanguard High Dividend Yield ETF

VYM is the Vanguard High Dividend Yield ETF, a broad-diversification dividend fund that holds approximately 540 US stocks selected for above-median yield. Yields approximately 2.7% with broader coverage than SCHD's quality-screened approach. Expense ratio of 0.06%, identical to SCHD.

VYM, listed on NYSE Arca. The official name is Vanguard High Dividend Yield ETF, issued by Vanguard. It tracks the FTSE High Dividend Yield Index, which selects US stocks with above-median forecasted dividend yields.

Approximately 540 US stocks. Top 10 typically include Berkshire Hathaway, JPMorgan Chase, Broadcom, Exxon Mobil, Walmart, Procter & Gamble, Johnson & Johnson, Home Depot, AbbVie, Bank of America. Weights are spread broadly because of the 540-stock universe; top 10 typically account for ~25% of the fund.

Different strategies. VYM picks above-median-yield US stocks with no quality screen; yields ~2.7% with 540 holdings. SCHD adds quality criteria (10-year dividend history, cash flow coverage, ROE); yields ~3.5% with 100 holdings. VYM is broader diversification; SCHD is concentrated quality. Both at 0.06% expense ratio. Returns over long horizons have been close; SCHD has typically outperformed in stress periods because of the quality screen.

0.06% per year. On a $10,000 investment, that's $6/year. Among the cheapest dividend ETFs available. Tied with SCHD at the lowest fee for a meaningful dividend ETF; both fund families compete on cost.

Approximately 2.7% as of early 2026, paid quarterly. Lower than SCHD's ~3.5% because VYM's selection methodology is broader (above-median yield) versus SCHD's tighter quality-and-yield combination. The trade-off is more diversification at lower yield.

VYM trades like any stock during US market hours. Buy it through any broker: Robinhood, Fidelity, Schwab, Public, M1, Vanguard, or any other. Vanguard offers VYM commission-free through its own brokerage. Fractional shares supported at most modern brokers.

Approximately $60 billion as of early 2026. VYM is the second-largest US-focused dividend ETF by AUM, behind SCHD. The two have grown in parallel as dividend-tilted investing has gained passive share.

VYM captures broad US dividend exposure at near-zero cost with 540 holdings of diversification. For investors who want exposure to dividend-paying US large-caps without the SCHD quality concentration, VYM is the most-common alternative. Walnut isn't an investment adviser; whether VYM fits your portfolio depends on your income needs, your time horizon, and your view on quality versus diversification trade-offs.

November 2006. VYM has been one of Vanguard's flagship dividend ETFs for nearly two decades. Its breadth and low cost have made it the dividend ETF of choice for fee-conscious investors seeking diversification.

VYM excludes REITs (real estate investment trusts) under FTSE's High Dividend Yield Index methodology. Investors who want REIT exposure typically combine VYM with a dedicated REIT ETF like VNQ (Vanguard Real Estate). The exclusion is a meaningful methodology difference from broader dividend ETFs that include REITs.

Yes, at brokers that support fractional ETF purchases: Robinhood, Fidelity, Schwab, Public, M1, and several others. Vanguard's brokerage supports fractional purchases for VYM as a Vanguard fund.

Yes. VYM pays distributions on a quarterly schedule, typically March, June, September, and December. The exact dollar amount varies with the underlying constituents. Dividend reinvestment (DRIP) is available at most brokers.

VYM holds 540 stocks at average yields; a Walnut basket of 5-8 hand-picked dividend growers (the dividend-growth theme) is more concentrated. The trade-off: VYM gives you maximum diversification at moderate yield; a thematic basket lets you concentrate on the highest-conviction dividend compounders. Many users hold VYM as core income plus a small thematic dividend basket as a satellite.