Vanguard's VYM ETF, marketed as a high dividend income fund, currently yields about 2.2%, lower than many retirees expect. This is because VYM excludes real estate investment trusts (REITs) from its portfolio due to tax methodology, removing a significant income source tied to inflation-linked rents and diversification. While VYM offers growth and tax efficiency with low fees, retirees seeking steady, higher income should consider pairing VYM with a REIT-focused fund like Vanguard Real Estate ETF (VNQ) or individual REIT stocks such as Realty Income. This combination better addresses retirees' income needs by adding stable, inflation-resistant cash flow that VYM alone does not provide.
In 2026, Vanguard's High Dividend Yield ETF (VYM) has outperformed the S&P 500, delivering a 16.58% return compared to the S&P 500's 13.75%. This marks a shift as dividend ETFs had lagged behind due to higher fees, tax impacts, and a value stock bias...
A $10,000 investment in the Schwab U.S. Dividend Equity ETF (SCHD) made at its 2011 launch now generates a higher annual yield on cost than any new dividend ETF purchase today. SCHD combines quality screening with a focus on dividend growth and yield...
With September historically a weak month for stocks and hedge funds holding large Nasdaq short positions, Baby Boomers nearing retirement should consider shifting to safer investments. Five dividend-focused ETFs—Schwab U.S. Dividend Equity, Vanguard ...
