![]() ![]() At the time of writing, its yield is 4.25%, compared to 2.75% for VYM. ![]() SPHD's concentration allows it to deliver a higher dividend yield, which may be the most important factor for a dividend investor. SPHD has slightly higher ESG/SRI scores than VYM, if you care about that sort of thing. SPHD also tilts smaller (Size factor) than VYM. These are going to be companies with more robust profitability and conservative investment policies. SPHD is looking for low-volatility stocks with a high dividend. VYM has slightly more loading on Value but much lower exposure to Profitability and Investment. ![]() Its sector weightings aren't going to look like the market, and indeed it has a lower correlation to the market than VYM. This means SPHD poses comparatively more concentration risk. Because of this, note that SPHD only has about 50 holdings while VYM has a little over 400. Unlike SPHD, VYM doesn't care about volatility. Stocks are taken from the FTSE® All-World Index, excluding REITs, and are ranked by forecasted dividend yield, from which the top half are selected for inclusion. Its selection methodology is pretty simple. The Vanguard High Dividend Yield ETF ( VYM) seeks to track the FTSE® High Dividend Yield Index. Constituent stocks are weighted based on their 12 month trailing dividend yield. As the name suggests, this index takes the highest dividend payers from the S&P 500 Index and then selects the lowest volatility companies among those, resulting in a basket of about 50 companies that doesn't really represent the broader market. It tracks the S&P 500 Low Volatility High Dividend Index, which is rebalanced semi-annually. SPHD is the Invesco S&P 500 High Dividend Low Volatility ETF. Sequence of Return Risk in Retirement Explained.The 4% Rule for Retirement Withdrawal Rate – A Revisitation.The 10 Best ETFs for Retirement Portfolios in 2023.M1 Borrow Review (How M1’s Margin Loan Works).8 Reasons Why I’m Not a Dividend Income Investor.How To Beat the Market Using Leverage and Index Investing.What Is a Leveraged ETF and How Do They Work?.The 5 Best Emerging Markets ETFs (1 From Vanguard) for 2023.The Best Vanguard Dividend Funds – 4 Popular ETFs.VYM – Comparing Vanguard’s 2 Popular Dividend ETF’s The 5 Best EV ETFs – Electric Vehicles ETFs.The 8 Best Small Cap ETFs (4 From Vanguard).VTI – Vanguard S&P 500 or Total Stock Market ETF? Paul Merriman Ultimate Buy and Hold Portfolio.Factor Investing and Factor ETFs – The Ultimate Guide.How To Invest Your HSA (Health Savings Account).Portfolio Diversification – How To Diversify Your Portfolio.How To Invest in an Index Fund – The Best Index Funds.What Is the Stock Market? How It Works & How to Invest in It.Beginners Start Here – 10 Steps To Start Building Wealth. ![]()
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