03% Standard Deviation 12. Metric High Yield ETF (Sample) Broad Market ETF (Sample) Average Annual Return (3Y) 6.
Understanding the Risks of Vanguard High Yield Dividend ETFs
5% Expense Ratio 0. A review of historical returns should include an analysis of the maximum drawdown, which illustrates the worst peak to trough decline an investor might have experienced.
The objective is to deliver a higher income stream relative to the broader market, albeit sometimes with a corresponding increase in volatility or sector specific risk. Capital Preservation: High quality dividend payers tend to be stable companies, which can help cushion a portfolio during market downturns.
Understanding the Risks of Vanguard High Yield Dividend ETFs
Unlike broad market ETFs that weight holdings by market capitalization, these strategies often tilt towards sectors known for consistent payouts, such as utilities or consumer staples. Some are strictly value oriented, seeking the highest current yields regardless of payout sustainability.
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