VYM: If You're Chasing Dividends, This Might Trip You Up

Financial Serenity1.49K FollowersFollow5ShareSavePlay(9min)CommentsSummaryVanguard High Dividend Yield Index Fund ETF offers low-cost, large-cap value exposure with a 2.29% TTM yield and 15 years of dividend growth.VYM underweights tech, favoring financials, energy, and consumer defensive sectors, which could limit long-term return potential given tech's higher earnings growth.While VYM's value tilt has benefited from recent sector rotation, its risk and volatility metrics remain similar to the S&P 500.I rate VYM as HOLD, as alternatives like FDVV provide higher yield and better tech exposure for improved expected returns. We Are/DigitalVision via Getty Images I look for dividends. Those who follow me know it. And they know I look for them because, in my view, in the expected return function of a portfolio, they will carry more weight in the comingThis article was written byFinancial Serenity1.49K FollowersFollowFinancial Serenity is a financial analysis and quantitative research column with a particular focus on the asset management sector. It is actively managed by Tommaso Scarpellini, a seasoned financial researcher and data analyst with proven experience in banking and financial analytics platforms. This initiative aims to provide an in-depth analysis of the dynamics driving the asset management market.

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