2024-04-11 19:00:00 ET
Summary
- Vanguard High Dividend Yield Index Fund ETF (VYM) has outperformed Schwab U.S. Dividend Equity ETF (SCHD) in terms of capital appreciation over the past year.
- VYM is a cornerstone of the author's income-producing portfolio and is expected to continue growing and delivering annualized growth.
- VYM's top holdings are top-tier dividend companies with attractive valuations and strong dividend growth potential.
The Vanguard High Dividend Yield Index Fund ETF ( VYM ) and the Schwab U.S. Dividend Equity ETF ( SCHD ) are two of the most popular dividend ETFs, having amassed $67.87 billion and $55.36 billion in assets under management ((AUM)). At a point, I wasn't thrilled with being invested in VYM, but I didn't exit the position because I didn't want to become too heavily weighted toward SCHD. I am certainly glad I didn't just go off trailing data in my decision because VYM has been outpacing SCHD over the past year from a capital appreciation perspective. I am bullish on VYM because it allows investors to own a basket of income-producing securities with strong track records of dividend growth. There are many different income-focused ETFs and CEFs, and VYM is one of the cornerstones of my income-producing portfolio. I believe that VYM can continue higher throughout 2024 and deliver future annualized growth that will allow investors who are reinvesting the dividends to harness the powers of compounding. If you're looking for an income-focused ETF without an option overlay strategy, VYM has been solid over the past year....
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VYM Continues To Rally And Can Climb Higher While Outpacing SCHD