Well that last part is annoying since it doesn’t really allow anyone to see what the actual screens may be. Applying additional PROPRIETARY screens.Removing all stocks that are not currently paying a dividend and/or removing all stocks that are not forecast to pay dividends in the next 12 months.All Cap Index which starts with about 1827 constituents.įrom there the constituents are selected on this basis In order to be included in the index, the starting point is the FTSE U.S. In this case, it’s the FTSE High Dividend Yield Index which measures the investment returns of common stocks of companies characterized by high dividend yields. VYM follows a passive strategy tying itself to an index. We’ll discuss what that means later but a 3.07% yield for a high dividend yield ETF isn’t super exciting so hopefully growth is solid here.īefore we look at those things, let’s take a look at how VYM comes together. All the ETFs we reviewed prior to this don’t have anywhere near that longevity so this is certainly a plus.īased on the latest 12 months of dividends, the 3.07% yield an investor gets today is a bit lower than the 5 year average. The great thing here is that the ETF has been around for quite some time so it has a lot of history including the 2008 recession which will give us some insight into what actually happens to dividends during a recession. In fact, VYM is the 2nd largest dividend ETF out there so it’ll be interesting to see if its popularity is supported by solid performance. VYM follows a passive strategy which keeps the expense ratio low and its large size means there should be no issue with spreads or volume. You can see the high level details of VYM below and can always find the latest and greatest information and details for all of the ETFs in this series in this google spreadsheet. VYM DetailsĪccording to Vanguard, VYM provides a convenient way to track the performance of stocks that are forecasted to have above-average yields. VYM is one of the biggest dividend ETFs out there so let’s dive right into it. I can also do dumb rankings and crap like that later on which will be super fun. The nice thing about doing these across the long run is that I’ll get more comparable data and eventually figure out the best ETFs for me to invest in. In this series, we look at portfolio construction, performance and dividend growth and you can always find the other ETFs covered in this series here. On today’s third episode of my dividend analysis series, we’re taking a look at VYM, Vanguard’s High Dividend Yield Index ETF.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |