Vanguard High Dividend Yield ETF: Key Takeaways for Investors

Tuesday, 7 May 2024, 11:45

The Vanguard High Dividend Yield ETF offers a lucrative 55.6% return on a $300 investment made five years ago. Investors should note its low expense ratio of 0.06% compared to the market average of 0.9%, its low volatility, and the tendency to underperform during bull markets. While suitable for income-focused investors seeking high yield, low volatility stocks, those looking for maximum upside may prefer a simple S&P 500 index fund.
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Vanguard High Dividend Yield ETF: Key Takeaways for Investors

3 Things to Know about Vanguard's High Dividend Yield ETF

The Vanguard High Dividend Yield ETF is a profitable investment option, providing a 55.6% return over five years. However, investors should consider its implications before investing.

1. Low Expense Ratio

The ETF's expense ratio of 0.06% is significantly lower than the industry average of 0.9%, offering cost-effective investment opportunities.

2. Low Volatility

The ETF exhibits lower volatility, with a beta of 0.74 compared to major market indices, making it a stable choice for investors.

3. Performance in Bull Markets

While the ETF has outperformed with a 55.6% return, it tends to underperform in bull markets against major indices like the S&P 500, raising considerations for investors seeking maximum growth.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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