From Seekingalpha · The Sunday Investor · · 50s
VYM ETF Holds But 3-ETF Mix Outperforms
VYM's steady dividend lags behind a 3-ETF portfolio for better returns.
In brief
VYM's steady dividend lags behind a 3-ETF portfolio for better returns. VYM's 2.42% yield and long dividend growth streak trail three competitors by 32-55% in 10-year returns. Originally reported by Seekingalpha.
VYM's current status
The Vanguard High Dividend Yield ETF remains a hold due to consistent but average performance and moderate yield relative to peers.
VYM's strengths
VYM's sector and company diversification are strong, yet its 10-year total return lags competitors by 32-55%.
3-ETF portfolio
An equal-weighted mix of FDVV, DGRO, and SCHD delivers superior returns and higher dividend growth.
Yield comparison
VYM's 2.42% yield and long dividend growth streak appeal to conservative investors, but the 3-ETF mix targets 3% yield while maintaining broad diversification.
Investment thesis
The Sunday Investor rated VYM a hold on January 28, 2026, noting its balanced fundamentals and moderate yield.
The key point
VYM's 2.42% yield and long dividend growth streak trail three competitors by 32-55% in 10-year returns.
