Updated Reviewed quarterly
VYM ETF: High Dividend Yield
TER0.06%·Yield (TTM)3.0%·DistributionQuarterly·NZ taxFIF (US-domiciled, > NZ$50K cost-basis)
Vanguard's broad dividend ETF holding 500+ stocks with above-average yields. Maximum diversification for dividend investors at rock-bottom fees.
VYM Key Stats (2026)
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
Choose a Platform
VYM is available on Hatch, Stake, Sharesies, and Interactive Brokers.
Fund Your Account
Deposit NZD and convert to USD. VYM trades around US$125 per share.
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
Related to VYM
SCHD — quality-screened dividend alternative
100 stocks vs VYM 500+, both 0.06% TER.
SCHD vs VYM comparison
Quality screen vs broad yield.
JEPI — higher-income alternative
7.5% monthly via covered calls.
NZ dividend ETFs
PIE-tax NZX-listed dividend funds.
Best dividend ETFs for NZ
Curated dividend picks across markets.
Dividend yield explained
What yield does and doesn't tell you.
Next typical distribution: June.VYM typically pays in Mar · Jun · Sep · Dec. Issuer sets the exact date — verify on the distribution calendar before relying on a payment date.
Platform availability
Where to buy VYM from New Zealand
Based on each platform's advertised market coverage and fee schedule. Verify with the platform before transacting — instrument coverage can change.
| Platform | Per-trade fee | FX | Min | Notes |
|---|---|---|---|---|
 Sharesies Sharesies | 1.9% per trade | 0.5% | NZ$0 | Beginners, fractional shares, mixing NZ + US ETFs |
 Hatch Hatch | US$3 per trade (≤300 shares) | 0.5% | NZ$0 (US$1 to invest) | NZ investors who want US-only ETFs (SPY, VOO, QQQ, SCHD, JEPI) |
 Stake Stake | US$0 trades | 0.70% | NZ$0 | Frequent US-share traders who hate per-trade fees |
 Interactive Brokers Interactive Brokers | From US$0.35 / trade (Tiered) or US$1 flat (Fixed) | ~0.002% (US$2 min) | US$0 | Larger portfolios, frequent traders, multi-market investors |
 Tiger Brokers Tiger Brokers | US$1.99 per US trade | 0.50% | NZ$0 | NZ investors who want NZ + US + Asian markets in one account |
 Jarden Direct Jarden Direct | NZ$29.90 per NZX trade | ~0.40% | NZ$0 | Larger NZX trades and global market access through one NZ broker |
 ASB Securities ASB Securities | NZ$30 per NZX trade | Bank rates (~1%) | NZ$0 (ASB customer) | Existing ASB customers wanting one login for banking + brokerage |
Showing 7 platforms that list this ETF. Full platform comparison: all 11 NZ brokers → · Full coverage matrix: availability matrix →
NZ tax treatment
How is VYM taxed for NZ investors?
VYM is US-domiciled. NZ investors apply Foreign Investment Fund rules once total overseas-share cost basis crosses the de-minimis threshold. Below it, only dividends are taxable.
The FIF de-minimis threshold is NZ$50,000 (source) of overseas-share cost basis. Below it, FIF rules do not apply and only dividends are taxable.
Most NZ retail investors use Fair Dividend Rate (FDR): deemed income = 5% × opening market value × your marginal rate. Comparative Value (CV) can be lower in flat or down years.
US dividends carry 15% (source) withholding under the NZ–US tax treaty (file W-8BEN; default rate without it is 30% (source) ). The withheld amount can be claimed as a foreign tax credit on your IR3.
FDR vs CV method → · PIE vs FIF comparison →
🧮 Model your own after-tax outcome
Mechanical NZ-tax calculator comparing PIE @ PIR vs FIF @ FDR vs FIF @ CV on your principal, assumed return, time horizon, PIR, and marginal rate. → Open the after-tax calculator
General information only — not personalised tax advice. Confirm your treatment with a registered NZ tax adviser before transacting.
Add up to 4 more tickers to compare TER · yield · distribution · NZ tax structure.
FAQ
Common questions about VYM
What is the VYM ETF?⌄
VYM is the Vanguard High Dividend Yield ETF — holding ~500 above-average-yield US stocks weighted by market cap. 0.06% TER, quarterly distributions. Broader and more diversified than quality-screened dividend ETFs, with historically lower yield concentration risk.
VYM vs SCHD — which suits which investor?⌄
VYM is broader (~500 holdings vs ~100), market-cap-weighted, with no quality screen — closer to a beta-weighted high-yield basket. SCHD applies a 10+ year dividend-history quality filter and has historically produced stronger dividend growth. Same TER (0.06%). VYM tends to win on diversification; SCHD tends to win on dividend-growth track record.
Can NZ residents buy VYM?⌄
Yes — via Hatch, Stake, Sharesies (US market), and Interactive Brokers. Subject to NZ FIF rules above NZ$50,000 cost base. 15% US withholding tax on quarterly dividends with a W-8BEN — the 15% is generally claimable as a foreign tax credit on your IR3.
How does VYM compare to NZ-listed dividend options?⌄
Smartshares NZ Dividend ETF (DIV) is NZX-listed, PIE-taxed, and focused on top NZ dividend payers — different geography, different tax wrapper. VYM gives broad US dividend-equity exposure but triggers FIF above NZ$50,000. Some investors hold both to combine geographic and tax-structure diversification.
