Why Investors Love This Dividend ETF

“The beauty of this ETF, in my opinion, lies on the entire portfolio more than the simple top 10. The portfolio has large allocations just outside the top 10 to major dividend champions like Altria Group (NYSE:MO). They also have heavy positions in some of the big players that have recently fallen out of favor such as Wal-Mart (NYSE:WMT) and McDonald’s (NYSE:MCD). I love these positions for their ability to stabilize the portfolio if the market turns south. While few investors may think of Wal-Mart as a stabilizing force after their declines over the last year, I think investors are simply showing far too much fear about margin compression,” according to a Seeking Alpha post.

VYM is home to 436 stocks. Top 10 holdings include Dow components Exxon Mobil (NYSE: XOM), Microsoft (NasdaqGS: MSFT) and Procter & Gamble (NYSE: PG). The ETF charges just 0.1% per year.

Vanguard High Dividend Yield ETF