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Home/News Feed/Vanguard High Dividend Yield ETF lags S&P 500 by $141K over 10 years despite dividends.
VYM
$166.18
+$0.12 +0.07%

Vanguard High Dividend Yield ETF lags S&P 500 by $141K over 10 years despite dividends.

Market News
10 Aug 2026
24/7 Wall Street
View Source
Bearish
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A $300,000 investment in Vanguard High Dividend Yield ETF (VYM) ten years ago grew to about $922,110 with dividends reinvested, while the same amount in the S&P 500 reached roughly $1,063,230. VYM offers a lower yield around 2.2% and charges a 0.04% fee, but its total returns lag behind broader market ETFs like the S&P 500 and Schwab's dividend ETF (SCHD). VYM’s portfolio is heavily weighted in large-cap value stocks and overlaps significantly with total market funds, making it more of a closet index fund than a pure dividend play. Investors should consider the opportunity cost of lower returns and tax impacts on distributions when choosing dividend ETFs versus broader market options.

More News (VYM)

WisdomTree U.S. Total Dividend ETF (DTD) rated 'hold' for balanced factors but overlaps 57% with S&P 500 ETFs.

WisdomTree U.S. Total Dividend ETF (DTD) rated 'hold' for balanced factors but overlaps 57% with S&P 500 ETFs.

The WisdomTree U.S. Total Dividend ETF (DTD) maintains a 'hold' rating due to its balanced mix of growth, value, and quality factors, offering stability and monthly distributions with a yield near 2%. However, it overlaps 57% with S&P 500 ETFs like I...

Analyst Insights
Neutral
20 hours ago
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