VYM: Offering Low-Cost Exposure To Blue Chip Dividend Stocks

Mark Dockray2.2K FollowersFollow5ShareSavePlay(8min)CommentsSummaryThe Vanguard High Dividend Yield Index Fund ETF offers investors low-cost exposure to a diverse basket of dividend-paying stocks.VYM's methodology is more balanced than its name suggests and ultimately results in a portfolio that could be better described as a blue chip dividend fund.Its value tilt means VYM can lag composite indices during strong bull markets, though it has comfortably outperformed the value component of the Russell 1000 since inception.With a reduced 0.04% expense ratio and over $70 billion in managed assets, VYM could be an attractive core equity holding for conservative-minded investors. Richard Drury/DigitalVision via Getty Images After three straight years of underperforming the broader market, a lack of exposure to troubled software stocks has been good for value strategies in the early months of 2026.

The Vanguard High Dividend Yield Index Fund ETF (VYM) isThis article was written byMark Dockray2.2K FollowersFollowI like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK names on 'The UK Income Investor'.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.