Vanguard High Dividend Yield ETF Analysis Shows Strong Factors

A recent report provides insights into the Vanguard High Dividend Yield ETF's factor exposures, highlighting its strong low volatility and value attributes, which could positively influence its stock performance among investors seeking stability and income.

Date: 11-09-2024

AI Rating: 7

The report provides a detailed analysis of the Vanguard High Dividend Yield ETF (VYM)'s exposure to various investing factors. The ETF is classified as a Large-Cap Low Volatility ETF, with significant exposure to the Financial sector and concentrated in the Investment Services industry.

The scores for the major factors affecting the ETF are as follows:

Value: 68
Momentum: 45
Quality: 54
Low Volatility: 87

Among these, the ETF exhibits a particularly strong score in Low Volatility (87), indicating that it is likely to appeal to risk-averse investors. This level of low volatility suggests that the ETF could preserve capital during market downturns, making it attractive for conservative strategies.

The Value score, standing at 68, indicates that VYM is also perceived as reasonably priced based on its fundamentals, potentially appealing to value investors. Conversely, a lower score in Momentum (45) might suggest it does not currently have strong upward price movement, which could deter certain trend-following investors.

Investors may take these factors into consideration when evaluating VYM as part of their portfolios, particularly in a volatile market scenario, where low volatility and decent value could enhance investment stability.

Stocks: VYM