The Dividend ETF I'd Buy Today Instead of VYM
A robust selection strategy, better performance, and a higher yield all make the Schwab U.S. Dividend Equity ETF a clear upgrade over VYM.
Overview
The Vanguard High Dividend Yield ETF (NYSEMKT: VYM) is very simple in its construction. It starts with a U.S. large-cap stock universe, picks the top half based on forecasted dividend yield, and weights them by market cap.
It does its job reasonably well enough. Its 2.2% yield is more than double that of the Vanguard S&P 500 ETF (NYSEMKT: VOO). But it's also only average within the high yield category, and the fact that it owns more than 600 stocks means it's rather bland and unfocused.
Dividend investors can do better.
Details
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.