VYM: Technology Exposure Has Become A Weakness

REITer's Digest4.4K FollowersFollow5ShareSavePlay(11min)CommentsSummaryThe Vanguard High Dividend Yield Index Fund ETF faces renewed sector rotation, with recent underperformance versus peers like SCHD and HDV.VYM’s technology exposure, notably Broadcom at nearly 7%, has increased concentration risk and reduced diversification benefits during the current market shift.While VYM previously outperformed due to high-growth tech holdings, recent market dynamics favor traditional dividend sectors like energy, boosting competitors’ returns.Despite overlap with large-cap indices, VYM remains a cost-effective, diversified dividend option, warranting a Hold rating amid evolving sector trends.Pla2na/iStock via Getty Images Ladies and gentlemen, the rotation is back. Every so often there is a periodic shift in the investment world that comes seemingly out of nowhere. Sometimes there is news that acts as a catalyst, and sometimes there is seemingly nothing. RightThis article was written byREITer's Digest4.4K FollowersFollowREITer's DigestAnalyst’s Disclosure: I/we have a beneficial long position in the shares of VYM, SCHD, HDV, VOO either through stock ownership, options, or other derivatives. 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.