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VYM - ETF AI Analysis
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Vanguard High Dividend Yield Index ETF (VYM)
Rating:72Outperform
Price Target:
$156.00
Positive Factors
Strong Top Holdings
Several key positions, such as Broadcom and JPMorgan Chase, have delivered strong year-to-date performance, supporting the ETF's overall returns.
Low Expense Ratio
The ETF charges a very low expense ratio, making it cost-effective for investors compared to many other funds.
Sector Diversification
The fund is spread across multiple sectors, including financials, technology, and health care, reducing reliance on any single industry.
Negative Factors
High U.S. Concentration
The ETF is heavily focused on U.S. companies, with minimal exposure to international markets, limiting geographic diversification.
Underperforming Holdings
Some top holdings, such as UnitedHealth and Procter & Gamble, have lagged in year-to-date performance, which could drag on overall returns.
Overweight Financials
The fund has significant exposure to the financial sector, which could increase vulnerability to sector-specific risks.
VYM vs. SPDR S&P 500 ETF (SPY)
AUM66.45B
RegionNorth America
Expense Ratio0.06%
Beta0.73
IssuerVanguard
Inception DateNov 10, 2006
Dividend Yield2.52%
Asset ClassEquity
Index TrackedFTSE Custom High Dividend Yield
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume1,612,019
30 Day Avg. Volume1,481,838
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
160.40Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering568
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
VYM Summary
The Vanguard High Dividend Yield Index ETF (VYM) is an investment fund that focuses on U.S. companies known for paying strong dividends. It includes large, well-established businesses across various industries, such as Broadcom and JPMorgan Chase. This ETF is a good option for investors who want steady income from dividends while also benefiting from diversification across sectors like financials, technology, and healthcare. However, new investors should be aware that the ETF’s performance can go up and down with the overall stock market, and it is heavily reliant on U.S. 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
The Vanguard High Dividend Yield Index ETF (VYM) leans heavily on financials and technology, with names like JPMorgan Chase and Broadcom playing pivotal roles in its performance. Broadcom has been a rising star, buoyed by its focus on AI semiconductors, while JPMorgan shows mixed signals, balancing strong earnings with concerns over credit costs. Meanwhile, UnitedHealth has struggled to find its footing due to rising medical costs, and Procter & Gamble is lagging amid macroeconomic headwinds. With its U.S.-centric portfolio, VYM offers a steady income stream but faces sector-specific challenges.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Broadcom | 8.23% | $6.69B | $1.62T | 106.83% | 76 Outperform | |
| JPMorgan Chase | 4.17% | $3.39B | $826.51B | 22.58% | 72 Outperform | |
| Exxon Mobil | 2.39% | $1.94B | $503.07B | -2.19% | 75 Outperform | |
| Johnson & Johnson | 2.19% | $1.78B | $472.05B | 28.95% | 78 Outperform | |
| Walmart | 2.12% | $1.72B | $817.06B | 22.44% | 75 Outperform | |
| AbbVie | 1.86% | $1.51B | $410.67B | 40.73% | 62 Neutral | |
| Home Depot | 1.82% | $1.48B | $360.69B | -12.77% | 66 Neutral | |
| Bank of America | 1.74% | $1.41B | $384.18B | 10.19% | 70 Outperform | |
| Procter & Gamble | 1.70% | $1.38B | $345.07B | -14.60% | 74 Outperform | |
| UnitedHealth | 1.50% | $1.22B | $291.55B | -45.64% | 76 Outperform |
VYM Technical Analysis
Negative
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Price Trends
140.60
Negative
137.97
Positive
132.25
Positive
Market Momentum
0.14
Positive
44.40
Neutral
40.92
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VYM, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 140.88, equal to the 50-day MA of 140.60, and equal to the 200-day MA of 132.25, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 44.40 is Neutral, neither overbought nor oversold. The STOCH value of 40.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VYM.
VYM Peer Comparison
Comparison Results
Performance Comparison
VYM
Vanguard High Dividend Yield Index ETF
139.54
12.22
9.60%
SCHD
Schwab US Dividend Equity ETF
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DVY
iShares Select Dividend ETF
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SDY
SPDR S&P Dividend ETF
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HDV
iShares Core High Dividend ETF
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FVD
First Trust Value Line Dividend Index Fund
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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.
Disclaimer
This 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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