For the trailing 12 months, the ETF has posted a total return of 16.3%, compared with 14.2% for the S&P 500.
VYM was already among the cheapest dividend ETFs even before Vanguard’s fee cut. The market-cap-weighting approach also tends to keep turnover and taxes low.
“The fund’s methodology is elegant and its implementation low-cost,” Lee concludes, although investors should remember the fund “does not provide the high yield of some other dividend-focused ETFs that ignore market price or capitalization to invest in solely the highest-yielding stocks.”
Vanguard High Dividend Yield Index ETF
