TXN - VYM: Vulnerable To Cyclical Risks

• High dividend yield stocks are vulnerable to a cyclical downturn.
• A cyclical downturn, compounded by a secular slowdown, is increasingly likely.
• With the rising risk of a significant slowdown, both dividends and capital are at risk in high-yield equity ETFs.
• VYM is more exposed to cyclical risks than similar instruments.
• Reducing risk by shifting to less risky high-dividend ETFs or consumer staples might be prudent.

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