High Yield

VYM ETF: High Dividend Yield

Vanguard's broad dividend ETF holding 500+ stocks with above-average yields. Maximum diversification for dividend investors at rock-bottom fees.

How to Buy from NZ VYM vs SCHD

VYM Key Stats (2026)

Expense Ratio 0.06%
Dividend Yield 3.0%
AUM $55B+
Holdings 500+

What is VYM ETF?

VYM tracks the FTSE High Dividend Yield Index, which includes US stocks with above-average dividend yields while excluding REITs (Real Estate Investment Trusts).

Unlike SCHD's quality-focused approach, VYM simply selects stocks based on yield, resulting in broader diversification but potentially including lower-quality companies.

Sector Breakdown

  • • Financials: ~20%
  • • Healthcare: ~14%
  • • Consumer Staples: ~12%
  • • Industrials: ~11%
  • • Energy: ~10%

VYM vs SCHD: Which Dividend ETF?

Feature VYM SCHD
Holdings 500+ 100
Dividend Yield ~3.0% ~3.5%
Selection Method Above-average yield Quality + dividend history
5-Year Total Return Lower Higher
Volatility Lower (more diversified) Slightly higher

The verdict: SCHD has outperformed VYM historically, but VYM offers more diversification. Some investors hold both — SCHD for quality and VYM for breadth.

How to Buy VYM from New Zealand

1

Choose a Platform

VYM is available on Hatch, Stake, Sharesies, and Interactive Brokers.

2

Fund Your Account

Deposit NZD and convert to USD. VYM trades around US$125 per share.

3

Buy VYM

Search "VYM" and place your order. Dividends are paid quarterly in March, June, September, and December.

VYM: Pros & Cons

Pros

  • 500+ holdings for maximum diversification
  • Ultra-low 0.06% expense ratio
  • Lower volatility than SCHD
  • Broad sector exposure

Cons

  • ✕ Lower total returns than SCHD historically
  • ✕ No quality screen — may include weaker companies
  • ✕ Lower dividend yield than SCHD
  • ✕ Heavy financial sector weighting

Diversify Your Dividend Income

Compare platforms for buying VYM from New Zealand

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