Vanguard High Dividend Yield ETF (VYM): Complete Beginner's Guide
Vanguard High Dividend Yield ETF (VYM) is a high dividend ETF from Vanguard with an expense ratio of 0.06% and $60.0B in assets under management. Our Beginner Suitability Score: 9.5/10 (Great for Beginners). 5-year annualized return: 10.50%.
Last updated: April 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% |
VYM's top holding is Broadcom Inc. (AVGO) at 4.20%, followed by JPMorgan Chase & Co. (JPM) at 3.80% and ExxonMobil Corp. (XOM) at 3.20%. The top 10 holdings account for 27.80% of the fund's 550 total positions.
View data table
| Rank | 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%
VYM has returned 10.50% annualized over 5 years and 9.80% over 10 years. YTD return is 2.10%.
View data table
| Period | Return |
|---|---|
| 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.
VYM Sector Allocation
Here's how VYM distributes its investments across different sectors of the economy:
VYM's largest sector allocation is Financials at 21.2%, followed by Health Care at 14.2% and Consumer Staples at 12.8%.
View data table
| Sector | Weight |
|---|---|
| Financials | 21.2% |
| Health Care | 14.2% |
| Consumer Staples | 12.8% |
| Industrials | 11.5% |
| Energy | 10.2% |
| Information Technology | 9.8% |
| Utilities | 7.2% |
| Consumer Discretionary | 5.8% |
| Communication Services | 4.2% |
| Materials | 3.1% |
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.
VYM's expense ratio of 0.06% costs $516 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $46,094.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,653 | $40 |
| 10 | $21,589 | $21,470 | $119 |
| 15 | $31,722 | $31,458 | $264 |
| 20 | $46,610 | $46,094 | $516 |
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.
What sectors does VYM invest in?▾
VYM's largest sector allocations are Financials (21.20%), Health Care (14.20%), Consumer Staples (12.80%). This sector distribution shows a focus on financials stocks.
How much do VYM's fees cost over time?▾
With an expense ratio of 0.06%, a $10,000 investment in VYM would lose approximately $515 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.