Vanguard High Dividend Yield ETF Posts 12.2% One-Year Return with 0.06% Fee and $84.5 Billion AUM
Vanguard High Dividend Yield ETF has delivered a 12.2% one-year total return as of December 26, 2025, while charging a 0.06% expense ratio on $84.5 billion in assets with 589 holdings. Its 2.4% dividend yield and 21% financial services, 18% technology, 13% healthcare sector exposures support diversified income growth.
1. VYM’s Cost Structure and Scale
The Vanguard High Dividend Yield ETF (VYM) charges an ultra-low expense ratio of 0.06%, making it one of the most affordable dividend-focused funds on the market. With assets under management totaling $84.5 billion as of December 31, 2025, VYM’s large size supports tight bid-ask spreads and high trading liquidity, ensuring that investors can enter and exit positions with minimal market impact.
2. Recent and Long-Term Performance
Over the trailing 12 months ending December 26, 2025, VYM delivered a total return of 12.2%, outpacing many peers in the high-yield space. Over the past five years, a hypothetical $1,000 initial investment in VYM grew to $1,601, reflecting the fund’s ability to compound both income and capital appreciation. Its maximum drawdown during that period was 15.83%, illustrating a relatively shallow peak-to-trough decline compared with the broader equity market.
3. Portfolio Composition and Sector Exposure
As of December 29, 2025, VYM holds 589 U.S. companies, offering wide industry coverage. The largest sector weights are in financial services (21%), technology (18%), and healthcare (13%). Top individual positions include Broadcom Inc., JPMorgan Chase & Co. and Exxon Mobil Corp. This diversified lineup helps reduce reliance on any single stock or sector while capturing income opportunities across the market.
4. Suitability for Income-Seeking Investors
VYM yields 2.4% on a trailing-12-month basis, combining a competitive payout with minimal fees. Its broad diversification and inclusion of technology names—benefiting from the recent artificial intelligence surge—have driven stronger returns than many narrower dividend strategies. The fund’s low cost and large asset base make it especially attractive for investors seeking steady dividend income alongside potential for capital growth.