“In mid-August VYM dropped over 10%, partly on speculation that a September rate hike was evident. Since the Fed has delayed raising rates in the following two meetings, the fund has rebounded to the pre-drop levels. While VYM has not suffered a recent steep drop, it has traded cautiously over the last month, gaining under 1%. I view the potential upside to VYM, if the Fed delays yet again in December, as greatly outweighing any downside risk. In fact, while most traders are expecting a hike, they are still not completely sold on it,” according to Seeking Alpha.
The superficial allure of VYM may come by way of its high-yield title, but the stronger reason to consider the ETF is its capacity for dividend growth.
Vanguard High Dividend Yield ETF
