Of course! Let's dive into the details of the Vanguard High Dividend Yield ETF (VYM).
Unlocking the Power of Dividends: A Guide to the Vanguard High Dividend Yield ETF (VYM)
Are you looking for a way to generate income from your investments? Perhaps you're a long-term investor who wants to build a portfolio that pays you consistently. If so, you've likely heard of dividend stocks and ETFs. And when it comes to low-cost, high-quality dividend ETFs, the Vanguard High Dividend Yield ETF (VYM) is a name that comes up again and again.
But what exactly is it, and more importantly, how much is Vanguard High Dividend Yield ETF?
Let's embark on a step-by-step journey to understand VYM, its current value, and why it might be a valuable addition to your portfolio.
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| How Much Is Vanguard High Dividend Yield Etf |
Step 1: The First Thing You Need to Know - The Live Price
Let's cut right to the chase! Before we explore all the nitty-gritty details, let's look at the most important number right now: the price of a single share.
As of the market closing on June 25, 2025, the Vanguard High Dividend Yield ETF (VYM) had a price of $130.99 per share.
Remember, this price fluctuates constantly throughout the trading day. Just like a stock, the price of a VYM share is determined by supply and demand on the stock market. So, while this is the last closing price, it's essential to check the live quote through a reliable financial platform or your brokerage account to get the most up-to-the-minute value.
Step 2: Understanding What You're Buying: The Fundamentals of VYM
Now that you know the price of one share, let's understand what that share represents. VYM is not a single stock; it's an Exchange Traded Fund (ETF). Think of it as a basket that holds hundreds of different stocks. When you buy one share of VYM, you are essentially buying a tiny piece of every company in that basket.
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2.1 What's in the Basket? Top Holdings
VYM's goal is to track the FTSE High Dividend Yield Index, which is composed of stocks of U.S. companies that are known for paying higher-than-average dividends. This gives you instant diversification across various sectors.
As of mid-2025, some of the top holdings in VYM's portfolio include well-known, blue-chip companies. These are established businesses that have a history of generating consistent profits and sharing them with shareholders. Some of the top holdings you'll find in the ETF are:
Broadcom Inc.
JPMorgan Chase & Co.
Exxon Mobil Corp.
Walmart Inc.
Procter & Gamble Company
UnitedHealth Group
Johnson & Johnson
Home Depot Inc.
AbbVie Inc.
Coca-Cola Co.
This list gives you a great idea of the types of stable, dividend-paying companies that make up the core of VYM.
2.2 The Cost of the Basket: The Expense Ratio
One of the most attractive features of Vanguard ETFs is their famously low expense ratios. The expense ratio is an annual fee that a fund charges to cover its operating costs. For VYM, this fee is incredibly low at 0.06%.
What does this mean for you? For every $10,000 you invest in VYM, you're only paying $6 a year in fees. This low cost is a significant advantage, as it allows more of your investment returns to stay in your pocket.
Step 3: The Real Reason You're Interested: The Dividend Yield
The "High Dividend Yield" in the name isn't just for show. This is where VYM truly shines for income-focused investors. The dividend yield is a percentage that represents the annual dividend payments relative to the share price.
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3.1 What is the Current Yield?
As of late June 2025, the forward dividend yield for VYM is approximately 2.68%.
This means that if you were to invest in VYM today, you could expect an annual dividend income of roughly 2.68% of your investment value. It's important to note that dividend yields can fluctuate with both the dividend payment amount and the share price.
3.2 How Often Does VYM Pay Dividends?
VYM pays dividends to its shareholders on a quarterly basis. The dividend payments are not guaranteed to be the same each quarter; they can fluctuate based on the dividends received from the underlying companies in the ETF.
Looking at the historical data, VYM has a consistent history of making these payments. The last dividend payment was on June 24, 2025, with an amount of $0.86 per share. The next dividend is expected to be paid in September 2025.
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Step 4: Looking at the Past: VYM's Performance History
While past performance is no guarantee of future returns, it's crucial to understand how an investment has performed historically. VYM has a strong track record, offering a blend of both dividend income and capital appreciation.
4.1 A Look at Returns
Over the years, VYM has provided competitive returns. As of May 31, 2025, here's a look at its performance based on NAV (Net Asset Value):
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1-Year Return: 10.89%
3-Year Return: 8.34% (annualized)
5-Year Return: 13.46% (annualized)
10-Year Return: 9.74% (annualized)
These returns include both the growth in the share price and the reinvested dividends, showcasing the power of compounding.
4.2 VYM vs. the S&P 500
You might be wondering how VYM stacks up against a broad market index like the S&P 500. It's a valid question. While VYM may not always outperform the S&P 500 in terms of total return during strong bull markets (especially those driven by growth stocks), its focus on dividends provides a different risk-reward profile. During periods of market volatility or downturns, the consistent dividend income from VYM can help offset some of the losses in share price, making it a more resilient holding.
Step 5: Putting it all Together: How to Buy VYM
So, you've done your research, and you're ready to add VYM to your portfolio. Here is a simple, step-by-step guide to doing so.
5.1 Open a Brokerage Account
The first and most important step is to have a brokerage account. This is a type of account that allows you to buy and sell stocks and ETFs. Popular online brokerages include Vanguard (of course), Fidelity, Charles Schwab, and others. If you are an investor in India, you can use platforms like INDmoney or Angel One that offer access to US stocks and ETFs.
5.2 Fund Your Account
Once your account is open, you will need to transfer funds into it. This can be done via a bank transfer, wire transfer, or other methods supported by your brokerage.
QuickTip: Repetition signals what matters most.
5.3 Place Your Order
Log in to your brokerage account.
Search for VYM using its ticker symbol: VYM.
Decide how many shares you want to buy. You can buy whole shares or, on many platforms, fractional shares (a portion of a share).
Choose your order type. A market order will buy the shares at the current market price, while a limit order allows you to set a maximum price you are willing to pay. For most investors, a market order is sufficient.
Review your order details and place the trade.
And just like that, you're now a shareholder in the Vanguard High Dividend Yield ETF!
10 Related FAQ Subheadings
How to find the real-time price of VYM? You can find the real-time price of VYM by checking your brokerage account, using financial news websites like Bloomberg, Yahoo Finance, or Google Finance, or by visiting the official Vanguard website.
How to calculate the dividend yield for VYM? To calculate the dividend yield, you divide the total annual dividend payments per share by the current share price. For example, if the annual dividend is $3.50 and the share price is $130, the yield is ($3.50 / $130) * 100 = 2.69%.
How to reinvest VYM dividends automatically? Most brokerage platforms offer a "Dividend Reinvestment Plan" (DRIP) option. By enrolling in a DRIP, your received dividends are automatically used to buy more shares or fractional shares of VYM, allowing your investment to compound over time.
How to see VYM's historical dividend payments? You can view VYM's complete dividend payment history on financial websites like Dividend.com, Market Chameleon, and the Vanguard investor website. They provide details on ex-dividend dates, payment dates, and the amount per share.
How to compare VYM with other dividend ETFs like SCHD? To compare VYM with other ETFs like SCHD (Schwab US Dividend Equity ETF), you should look at key metrics such as expense ratio, dividend yield, historical performance, top holdings, and the underlying index they track. VYM's focus is on high dividend yield, while SCHD focuses on companies with a history of consistent dividend growth.
How to know if VYM is a good investment for me? VYM is generally considered a suitable investment for long-term investors seeking income and exposure to a diversified portfolio of U.S. dividend-paying stocks. It may be a good fit if you prioritize income and want a low-cost, passively managed fund.
How to check VYM's AUM (Assets Under Management)? You can check VYM's AUM on the Vanguard website or through financial data providers. As of May 31, 2025, VYM had a massive AUM of around $72.9 billion, indicating its immense popularity and liquidity.
How to understand VYM's performance in a bear market? In a bear market, VYM's share price may decline along with the broader market. However, its focus on dividend-paying companies can make it more resilient than growth-focused funds, as the dividend income can help cushion the blow of a falling share price.
How to find out VYM's top sectors? VYM is well-diversified across sectors. As of the latest data, its top sector exposures include Financials, Consumer Staples, Industrials, and Health Care. This provides a balanced portfolio and reduces concentration risk.
How to buy VYM from India? Indian investors can buy VYM by opening an international trading account with a brokerage that facilitates US stock and ETF investments, such as INDmoney or Angel One. You would need to fund your account with U.S. dollars and then place an order for VYM.
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