VYM - ETF AI Analysis
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Vanguard High Dividend Yield Index ETF (VYM)
Rating:72Outperform
Price Target:―
Positive Factors
Strong Overall Performance
The ETF has shown solid gains over the year and in recent months, indicating healthy momentum for investors.
Leading Dividend-Paying Holdings
Several of the largest positions, such as Broadcom, Exxon Mobil, Caterpillar, and Cisco, have delivered strong returns, helping support the fund’s results.
Low Expense Ratio
The fund’s very low fee means more of the investment returns stay in investors’ pockets instead of going to costs.
Broad Sector Diversification
Exposure across many sectors, including financials, technology, health care, industrials, and energy, helps reduce the impact of weakness in any single industry.
Large Asset Base
The ETF manages a very high level of assets, which can support liquidity and trading efficiency for everyday investors.
Negative Factors
Heavy U.S. Concentration
With almost all holdings in U.S. companies, the fund offers very limited geographic diversification and is highly tied to the U.S. market.
Top Holdings Concentration Risk
A small group of large positions makes up a meaningful share of the portfolio, increasing the impact if any of these companies run into trouble.
Mixed Performance Among Top Stocks
While many key holdings are performing well, some, like Home Depot, have been weak recently, which can drag on overall returns.
VYM vs. SPDR S&P 500 ETF (SPY)
AUM81.07B
RegionNorth America
Expense Ratio0.04%
Beta0.71
IssuerVanguard
Inception DateNov 10, 2006
Dividend Yield2.24%
Asset ClassEquity
Index TrackedFTSE Custom High Dividend Yield
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume1,179,282
30 Day Avg. Volume1,235,846
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
185.84Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering604
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 is all about steady, dividend-heavy blue chips with a clear U.S. tilt. Broadcom is a big swing factor here, with its AI-fueled gains earlier in the year now looking a bit tired, while Oracle has been more mixed, occasionally tripping over its own rich valuation. On the brighter side, Cisco and Caterpillar have been climbing, giving the fund a lift from both tech and industrial muscle. Energy giants like Exxon and Chevron are losing some steam lately, making the ride a bit bumpier despite their rich payouts.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Broadcom | 7.25% | $7.01B | $1.89T | 35.94% | 76 Outperform | |
| JPMorgan Chase | 3.36% | $3.25B | $933.03B | 17.99% | 72 Outperform | |
| Johnson & Johnson | 2.53% | $2.44B | $615.36B | 52.91% | 78 Outperform | |
| Exxon Mobil | 2.35% | $2.27B | $640.11B | 41.61% | 74 Outperform | |
| Caterpillar | 2.00% | $1.93B | $409.65B | 108.26% | 76 Outperform | |
| Cisco Systems | 1.91% | $1.85B | $442.27B | 65.12% | 77 Outperform | |
| AbbVie | 1.84% | $1.78B | $447.53B | 34.63% | 66 Neutral | |
| Bank of America | 1.55% | $1.50B | $437.29B | 26.64% | 72 Outperform | |
| UnitedHealth | 1.55% | $1.50B | $391.69B | 52.04% | 72 Outperform | |
| Home Depot | 1.45% | $1.40B | $330.49B | -12.97% | 66 Neutral |
VYM Technical Analysis
Positive
―
Price Trends
158.61
Positive
154.61
Positive
149.10
Positive
Market Momentum
0.86
Negative
63.64
Neutral
83.83
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 160.09, equal to the 50-day MA of 158.61, and equal to the 200-day MA of 149.10, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 63.64 is Neutral, neither overbought nor oversold. The STOCH value of 83.83 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
Performance Comparison
VYM
Vanguard High Dividend Yield Index ETF
162.23
29.42
22.15%
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
―
―
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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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