Is Vanguard High Dividend Yield ETF a Buy?
The Vanguard High Dividend Yield ETF (NYSEMKT: VYM) is a passively managed exchange-traded fund that invests in several hundred stocks with above-average dividends. Although the stock market looks generally expensive right now, the fund could still be a smart choice for your portfolio. Here's what investors should know about this ETF and why you might want to consider it.
As the name implies, the Vanguard High Dividend Yield ETF invests in stocks that pay high dividend yields. Specifically, the ETF tracks an index known as the FTSE High Dividend Yield Index, which contains approximately 400 stocks with above-average dividend yields, specifically excluding real estate investment trusts (REITs).
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Source: Fool.com