VYM Is Great, but Vanguard Has Another High-Yield ETF That Pays Twice as Much
Briefly

VYM Is Great, but Vanguard Has Another High-Yield ETF That Pays Twice as Much
"VYM tracks the FTSE High Dividend Yield Index, which removes real estate investment trusts and ranks stocks by forward dividend yield, resulting in a portfolio of about 550 companies."
"VYM trades at around 21.8 times earnings, cheaper than the broader market, while maintaining solid quality with a 19.2% average return on equity."
"The Vanguard Emerging Markets Government Bond ETF (VWOB) offers a 6.05% 30-day SEC yield with monthly distributions, but comes with credit risk."
"VWOB holds government bonds issued by emerging market countries, which are defined as developing economies with lower income levels and often higher political or economic instability."
Vanguard High Dividend Yield ETF (VYM) tracks the FTSE High Dividend Yield Index, excluding certain companies and focusing on dividend yield. It has a 2.29% yield and trades at 21.8 times earnings, providing a value tilt. However, for higher income, investors may consider the Vanguard Emerging Markets Government Bond ETF (VWOB), which offers a 6.05% yield but involves credit risk. VWOB includes government bonds from emerging market countries, which are economically developing and may have higher instability.
Read at 24/7 Wall St.
Unable to calculate read time
[
|
]