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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 (Vanguard High Dividend Yield Index ETF) has a solid overall rating, suggesting it offers a generally strong, income-focused portfolio with some areas to watch. High-quality leaders like Johnson & Johnson, Walmart, Broadcom, Exxon Mobil, and Caterpillar support the fund’s rating through strong financial performance, positive earnings commentary, and strategic growth in areas like healthcare, retail, AI semiconductors, and energy. However, holdings such as AbbVie, Procter & Gamble, Home Depot, and Chevron introduce some pressure due to valuation concerns, technical weakness, leverage, and cash flow challenges, and the fund’s meaningful exposure to energy and a few large names is a key risk if those sectors or companies stumble.
Positive Factors
Low Expense Ratio
The ETF charges a very low fee, which helps investors keep more of their returns over time.
Broad Sector Diversification
Holdings are spread across many sectors like financials, technology, health care, and industrials, which helps reduce the impact if any one sector struggles.
Large Asset Base
The fund manages a very large amount of assets, which generally supports good trading liquidity and stability for investors.
Negative Factors
Heavy U.S. Concentration
Almost all of the ETF’s holdings are in U.S. companies, offering very little geographic diversification outside the United States.
Top Holding Weakness
The largest position, Broadcom, has shown weak performance so far this year, which can drag on the fund given its sizable weight.
Mixed Performance Among Big Financials
Major financial holdings like JPMorgan Chase and Bank of America have been lagging recently, which may weigh on returns given the fund’s large financial sector exposure.

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 JPMorgan Chase and Exxon Mobil, along with firms in technology, health care, and consumer goods. Someone might invest in VYM to seek regular income from dividends while still staying diversified across many industries. A key risk is that stock prices and dividend payments can go up or down with the overall market and the health of these companies.
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 lagging dividend heavyweights and a few steady workhorses. Broadcom and JPMorgan, two of the fund’s biggest positions, have been losing steam lately, putting pressure on returns. On the brighter side, energy giants Exxon Mobil and Chevron are rising and helping to prop up performance, while defensive names like Johnson & Johnson and Walmart are holding fairly steady. The fund is solidly U.S.-focused and leans into financials, energy, and classic blue-chip dividend payers rather than high-flying growth tech.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Broadcom6.47%$6.01B$1.76T104.22%
76
Outperform
JPMorgan Chase3.36%$3.12B$835.73B31.19%
72
Outperform
Exxon Mobil2.83%$2.62B$635.47B47.87%
74
Outperform
Johnson & Johnson2.62%$2.43B$574.36B57.16%
78
Outperform
Walmart2.44%$2.27B$1.03T36.60%
78
Outperform
AbbVie1.80%$1.67B$367.80B18.79%
66
Neutral
Procter & Gamble1.72%$1.60B$340.84B-13.03%
69
Neutral
Home Depot1.66%$1.54B$338.23B-4.67%
66
Neutral
Chevron1.53%$1.42B$379.84B39.02%
71
Outperform
Caterpillar1.51%$1.40B$366.21B169.44%
76
Outperform

VYM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
150.75
Positive
100DMA
147.24
Positive
200DMA
141.66
Positive
Market Momentum
MACD
0.33
Negative
RSI
61.57
Neutral
STOCH
93.97
Negative
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 148.13, equal to the 50-day MA of 150.75, and equal to the 200-day MA of 141.66, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 61.57 is Neutral, neither overbought nor oversold. The STOCH value of 93.97 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
$75.09B0.04%
71
Outperform
$86.27B0.06%
73
Outperform
$22.61B0.38%
69
Neutral
$20.61B0.35%
71
Outperform
$13.62B0.08%
72
Outperform
$8.62B0.15%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VYM
Vanguard High Dividend Yield Index ETF
152.06
32.79
27.49%
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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