VYM tracks the FTSE High Dividend Yield Index and excludes real estate stocks. The ETF charges just 0.08% per year, or $8 on a $10,000 investment, making it less expensive than 92% of competing funds, according to issuer data.
Related: Smart Beta ETFs Are Smart Long-Term Investments
VYM holds nearly 430 stocks and is diverse at the sector level as five groups – consumer goods, technology, financial services, healthcare and industrials – receive double-digit weights. Although it is a highd dividend ETF, high-yielding sectors such as telcom and utilities combine for less than 13% of VYM’s weight. Earlier this year, Vanguard lowered the annual fee on VYM by one basis point.
“The low expense ratio is great for investors looking to get market exposure and not having to pay absurd expenses. VYM is a fund I’d be interested in having as part of my portfolio in the event of a market panic,” according to Seeking Alpha.
For more on smart beta ETFs, visit our Smart Beta Channel.