Vanguard High Dividend Yield ETF (VYM) has a trailing yield of about 2.3%, below the roughly 5.3% paid by a 10-year Treasury, yet its net assets rose from $94.6 billion in the April filing to $99.2 billion by July. The fund tracks the FTSE High Dividend Yield Index, excludes REITs, and paid $3.68 per share over the past 12 months, with the latest quarterly distribution at $0.8869. The four largest holdings, Broadcom (about 7.4% of the fund, 0.7% yield), JPMorgan Chase (about 3.8%, 1.8%), Exxon Mobil (about 2.6%, 2.5%) and Johnson & Johnson (about 2.5%, 2.1%), have payout ratios of about 26% to 61% of earnings. The article argues that price gains offset the lower yield: on a dividend-adjusted basis the fund is up 12% this year and 197% over 10 years, though it fell 4% in the past month as bond yields rose.
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