Vanguard High Dividend Yield ETF (VYM): Complete Beginner's Guide
Last updated: March 2026 • Vanguard • High Dividend
Expense Ratio
0.06%
AUM
$60.0B
Dividend Yield
2.80%
Inception
2006
Beginner Score
9.5/10
What is Vanguard High Dividend Yield ETF?
VYM tracks an index of U.S. stocks that are forecasted to have above-average dividend yields, providing broad exposure to large-cap value companies. It holds around 550 stocks, making it more diversified than most dividend ETFs. Beginners who want income from their investments find VYM appealing because it combines a solid yield with Vanguard's trademark low costs and broad diversification.
VYM is managed by Vanguard and has been available since 2006. With $60.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.06%, which means for every $10,000 you invest, you pay approximately $6 per year in management fees.
VYM at a Glance — Key Metrics
| Expense Ratio | 0.06% |
| Total Holdings | 550 |
| P/E Ratio | 17.5 |
| Beta | 0.85 |
| Dividend Yield | 2.80% |
| AUM | $60.0B |
| Inception Year | 2006 |
| Issuer | Vanguard |
Top 10 Holdings in VYM
VYM holds 550 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Broadcom Inc. | AVGO | 4.20% |
| 2 | JPMorgan Chase & Co. | JPM | 3.80% |
| 3 | ExxonMobil Corp. | XOM | 3.20% |
| 4 | Procter & Gamble Co. | PG | 2.80% |
| 5 | Johnson & Johnson | JNJ | 2.60% |
| 6 | Home Depot Inc. | HD | 2.50% |
| 7 | AbbVie Inc. | ABBV | 2.40% |
| 8 | Walmart Inc. | WMT | 2.20% |
| 9 | Merck & Co. Inc. | MRK | 2.10% |
| 10 | Coca-Cola Co. | KO | 2.00% |
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VYM Performance History
Here's how VYM has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
2.10%
1 Year
15.80%
3 Year
7.80%
5 Year
10.50%
10 Year
9.80%
Beginner Suitability Score: 9.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
VYM scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 550 holdings, and has been available since 2006, giving it a proven track record.
How to Buy VYM — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "VYM" — Use the search bar in your brokerage platform to find Vanguard High Dividend Yield ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into VYM
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With VYM's expense ratio of 0.06%, a $10,000 investment would lose approximately $515 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
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Pros and Cons of VYM
Pros
- ✓Holds over 550 stocks, providing much broader diversification than most dividend-focused ETFs
- ✓Ultra-low 0.06% expense ratio is among the cheapest for high-dividend strategies
- ✓Strong value tilt has historically provided downside protection during market corrections
- ✓Quarterly dividends offer reliable income for investors building a cash flow stream
Cons
- ✗Lower yield than SCHD because it casts a wider net rather than concentrating on top dividend payers
- ✗Value-heavy portfolio has lagged the growth-driven S&P 500 over the past decade
- ✗Does not screen for dividend growth, so some holdings may have stagnant or declining payouts
VYM vs Similar ETFs
See how VYM stacks up against similar funds:
Frequently Asked Questions
Is VYM a good ETF for beginners?▾
VYM has a Beginner Suitability Score of 9.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of VYM?▾
VYM has an expense ratio of 0.06%. This means for every $10,000 you invest, you pay approximately $6 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in VYM?▾
You can invest in VYM with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does VYM pay dividends?▾
Yes, VYM pays dividends with a current yield of approximately 2.80%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in VYM?▾
The top holdings in VYM include Broadcom Inc. (4.20%), JPMorgan Chase & Co. (3.80%), ExxonMobil Corp. (3.20%), and more. The fund holds 550 total positions, providing broad diversification across many companies.