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.
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