VYM - If You'd Invested $300 in the Vanguard High Dividend Yield ETF 5 Years Ago Here's How Much You'd Have Today
2024-05-07 07:45:00 ET
The Vanguard High Dividend Yield ETF (NYSEMKT: VYM) has proven a profitable investment over the years. If you had invested $300 into the ETF five years ago, you'd have around $466 today -- a 55.6% return. But before you jump in, there are three things you should know about this fund.
One of the biggest determinants of a fund's performance is its expense ratio . That's how much a company charges you per year for holding the ETF. The Vanguard High Dividend Yield ETF has an expense ratio of just 0.06%. Vanguard estimates the expense ratio of similar funds to be around 0.9%, so this ETF is quite a bargain when it comes to expenses.
Vanguard's High Dividend Yield ETF also demonstrates less volatility than many market indices. Its beta versus the Dow Jones U.S. Total Stock Market Index , for instance, is just 0.74. That means that if the stock market were to fall by 1%, this ETF would be expected to fall by just 0.74%.
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If You'd Invested $300 in the Vanguard High Dividend Yield ETF 5 Years Ago, Here's How Much You'd Have Today