The Vanguard High Dividend ETF Doesn’t Play Well With Bears

The Vanguard High Dividend ETF Doesn’t Play Well With Bears

A Seeking Alpha Contribution


  • VYM is a broadly diversified dividend ETF with a relatively high yield compared to similar funds.
  • Aside from the 2008 financial crisis which hit all funds, VYM has consistently increased its dividends over time.
  • The overall performance is strong, but historically, VYM has outperformed other dividend ETFs during bull markets and underperformed during bear markets.

Dividend ETFs are more popular than ever, thanks to the central banks of the world giving us zero interest rate policies (ZIRP), but the word “dividend” in an ETF means different things in different funds. Some funds target very high-yields, such as Global X SuperDividend ETF (NYSEARCA:SDIV), but others such as Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) aim for growth, while WisdomTree has an entire lineup of ETFs that use dividends as a selection factor in their indexes. Investors benefit from having a wide range of choices among dividend funds, with sector and international exposure sliced and diced in many different ways. Picking the right fund for a portfolio can be a chore, though, since investors can dig through dozens of options… To Continue Reading, Please Click Here.

*Please note, this article was written and published as a contribution for Seeking Alpha. To finish reading the article you will be redirected to their site.



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