Vanguard High Dividend Yield provides a delicate balance between pursuing yield and mitigating risk. Weighting stocks by market cap steers the fund toward more stable, large-cap stocks and away from those whose dividends may be distressed. However, while this fund has a strong process, there are risks lingering at the margin that prevent us from assigning it our highest-conviction positive rating. As such, we are downgrading our Morningstar Analyst Rating for the fund's exchange-traded fund share class to Silver from Gold. Its Admiral share class maintains a Silver rating.
Will VYM outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable VYM’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the VYM management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of VYM’s parent organization’s priorities and whether they’re in line with investors’ interests.