Vanguard High Dividend Yield Index ETF (VYM)

The Vanguard High Dividend Yield Index ETF (VYM) started trading in mid November 2006. It tracks the FTSE High Dividend Yield Index, minus expenses and fees. The ETF's approach to tracking the index is full replication. That is, it owns every stock in the index.

The FTSE High Dividend Yield Index has the following sector weightings, composed of only US stocks:

Consumer Discretionary 6.3%
Consumer Staples 15.2%
Energy 7.0%
Financials 23.0%
Health Care 11.8%
Industrials 14.2%
Information Technology 1.3%
Materials 5.3%
Telecommunication Services 6.7%
Utilities 9.2%

The ETF is passively managed, with an expense ratio of 0.25%. The fund's turnover rate, as of October 2007 is 11%. The fund rebalances annually to reduce turnover.

Although this is subject to change, it pays dividends on a quarterly basis, at the end of March, June, September, and mid December. The dividend is irregular, and past distributions have ranged from $0.268 a share to $0.447 a share.

As of March 2008, the High Dividend Yield ETF held 578 stocks, which had a median market cap of $55.9 billion.

The ETF's holdings are listed below.





The fund holds domestic stocks with the highest dividend yields, but excludes Real Estate Investment Trusts (REITs), as they do not pay qualified dividends.