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VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You?

Written by Jessica Mitacek

Vanguard has cemented itself as one of the biggest names in exchange-traded funds (ETFs). The investment advisory firm and global asset manager briefly surpassed BlackRock (NYSE: BLK) as the largest U.S. ETF provider by assets.

In fact, the firm now manages around $4.7 trillion in assets just in its ETFs, with the Vanguard S&P 500 ETF (NYSEARCA: VOO) becoming the first fund ever to surpass $1 trillion in assets under management (AUM) in June 2026.

The company debuted its first-ever ETF, the Vanguard Total Stock Market ETF (NYSEARCA: VTI), in 2001. It has since built on that success, now offering 116 ETFs, including an array of reputable and diverse dividend-focused fundsfor income investors.

VIG: Dividend Appreciation

By tracking the S&P U.S. Dividend Growers Index, the Vanguard Dividend Appreciation ETF (NYSEARCA: VIG)targets high-quality companies with proven track records of increasing their dividend payments over time rather than chasing the highest yields.

The fund holds all the index’s stocks in approximately the same proportions as their index weightings.

With more than $112 billion in AUM and an expense ratio of just 0.04%, the VIG currently yields 1.47%, or $3.58 per share annually.

The VIG focuses on U.S.-based Dividend Achievers and Dividend Contenders—companies that have at least 10 consecutive years of increasing annual regular dividend payments—while excluding the top 25% highest-yielding stocks to avoid risk.

Shareholders get exposure to traditional dividend stocks like Johnson & Johnson (NYSE: JNJ) alongside high-growth tech stocks like Broadcom (NASDAQ: AVGO), the fund’s largest current allocation, with a weighting of 4.52%.

Because of that strategy, the VIG is also capable of providing strong share appreciation. The fund has gained around 11% year to date (YTD).

VYM: High Yield From U.S. Companies

The Vanguard High Dividend Yield ETF (NYSEARCA: VYM) is an exchange-traded fund designed to track the performance of the FTSE High Dividend Yield Index.

The fund provides exposure to U.S. companies that are forecast to pay above-average dividends, offering investors a diversified way to access income-generating equities.

With about $83 billion in AUM, the fund carries an expense ratio of 0.04%.

The VYM primarily focuses on large-cap stocks across a range of sectors.

Financials is currently the ETF’s largest sector exposure at 21.8%, followed by tech at 17% and healthcare at 13.1%.

Top holdings include JPMorgan Chase (NYSE: JPM), Broadcom, and Johnson & Johnson.

What sets VYM apart from VIG is its dividend.

The fund currently yields 2.2%, or $3.63 per share annually. That high yield, combined with targeted value stock exposure has made the ETF extremely popular among institutional investors. with more than $24 billion in inflows over the past 12 months against just over $3 billion in outflows.

In addition to its notable yield, the VYM has outperformed the S&P 500 with a YTD gain of about 15%.

VYMI: High Yield With a Global Twist

Like the VYM, the Vanguard International High Dividend Yield ETF (NYSEARCA: VYMI) targets high yield but through a global lens.

The fund has apprximately $21.3 billion in AUM, an expense ratio of 0.07%—the highest of the three ETFs on this list—and mostly invests in high-yield international equity.

The VYMI tracks a market-cap-weighted index of developed and emerging market firms (ex-U.S.) that are forecast to pay above-average dividends over the next 12 months.

Now in its 10th year, the ETF’s portfolio includes names like London-based HSBC Holdings (NYSE: HSBC), Swiss multinational pharmaceutical company Novartis (NYSE: NVS), and the Royal Bank of Canada (TSE: RY).

However, the largest geographic exposure is from Japan, which accounts for nearly 12% of the VYMI’s holdings.

The fund is of particular interest to investors looking for substantial and immediate income.

VYMI currently yields 3.42%—the highest of all three Vanguard ETFs profiled herein—or $3.60 per share annually.

As international equities continue to outperform their U.S. counterparts, so far in 2026, the VYMI has outperformed the three other ETFs on this list, posting a YTD gain of nearly 17%. READ THIS STORY ONLINE

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3 Closed-End Funds to Maximize Dividend Payments

Written by Nathan Reiff

Ultra-high dividend yields for individual stocks may appeal to investors seeking additional income—after all, who doesn’t want high dividend payments? At the same time, though, a very high yield can sometimes be a giant red flag for investors. If the yield is high because of a value trap in which the price of the stock is failing and the company is distressed, there is a growing risk of either a dividend cut or a continued decline to share price, or both.

One alternative is a fund that spreads that company-specific risk across a broader basket of firms. The funds below are all closed-end funds, meaning each has a fixed number of shares and a price that may deviate from its underlying net asset value (NAV). Closed-end fund investors take on additional risks due to the structure of these products, but they are particularly well-suited to income generation. Like a traditional exchange-traded fund (ETF), they offer greater diversification and ease for investors not interested in actively managing their own portfolios—but unlike most ETFs, each of these funds makes monthly distributions, ensuring that investors get access to dividend payments quickly and regularly. Together, these factors make high-yield closed-end funds often a more compelling way of accessing dividends than individual stocks.

A Closed-End Fund With High Fees and Higher Income

First up on our list: the Eaton Vance Risk-Managed Diversified Equity Income Fund (NYSE: ETJ). Closed-end funds often have eye-catching dividend yields, and ETJ is no exception. This fund provides a yield of 9.3%.

ETJ’s unique strategy combines a portfolio of traditional stock investments with out-of-the-money, short-dated put and call options on the S&P 500 index. It has traded at a discount to NAV fairly consistently for the last several years, and it makes monthly payments thanks to its options strategy component.

This fund only has 57 distinct holdings, though they are distributed across several different sectors, with information technology representing the largest share at about 39% of the portfolio. Thanks to its distinctive structure and actively managed approach, ETJ requires a fairly robust fee commitment from investors: the fund charges an annual fee of 1.12%. 

Compared to most ETFs this is exceptionally high, but investors may be more willing to pay in this case because of the substantial yield this fund offers.

A Utilities-Heavy Infrastructure Bet With Some Quirky Design Elements

Another closed-end fund for dividend yield pursuers, the NYLI CBRE Global Infrastructure Megatrends Term Fund (NYSE: MEGI) offers a 9.9% yield. Unlike ETJ, MEGI uses a thematic portfolio design structure that focuses on companies involved in decarbonization, digital transformation, and asset modernization within the infrastructure space. It often trades at a discount to NAV of between 7% and 9%.

Within MEGI’s portfolio of stocks are a variety of global energy, railway, communications, and other infrastructure companies. Utilities stocks—with their already-high dividends—make up the largest share of the portfolio at more than 59%. The result of this basket is a substantive monthly dividend tied to a vital and typically stable part of the market. MEGI’s annual fee is even higher than ETJ’s at 1.44%, which may deter some price-conscious investors.

An interesting feature of MEGI that long-term investors should keep in mind is that the fund is structured with a pre-defined liquidation date in 2033. This means that as of Dec. 15 of that year, MEGI will be dissolved. 

Although this is years in the future, those looking to buy and hold a dividend-paying fund may want to keep this in mind.

One of the Top Dividend Yields in the Space, But With Trade-Offs

Third on the list is another closed-end fund, the Ares Dynamic Credit Allocation Fund (NYSE: ARDC). This product offers a dividend yield of 10.9%, the highest on our list. Unlike the other closed-end funds above, ARDC seeks risk-adjusted total returns in addition to dividend income. Its portfolio primarily consists of high-yield bonds, senior loans, and collateralized loan obligation products.

Investing in bonds of companies whose debt is below investment grade—and in various derivatives—carries a higher level of risk than many investors are willing to take on themselves. 

ARDC is a way to entrust a dedicated team to manage these investments, although investors should still beware of the risks these underlying products entail. Still, for many the trade-off may be well worth it given ARDC’s industry-leading yield. READ THIS STORY ONLINE

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Rocket Lab’s Sell-Off Is Fading—Is It Finally Safe to Buy?

Written by Ryan Hasson

This summer, Rocket Lab (NASDAQ: RKLB) has been a difficult stock to own. After peaking at $151 in May, the shares were swept up in the brutal rotationthat followed the SpaceX (NASDAQ: SPCX) IPO, giving back more than half their value as investors fled the space sector.

But that wave of selling now appears to be losing its force. With Q2 earningsbehind the company, a fresh batch of contract wins rolling in, and the post-IPO panic easing, the question worth asking is whether the coast is finally clearing.

Earnings Are in the Rearview

The Aug. 10 earnings report removed one major source of uncertainty. Rocket Lab delivered record quarterly revenue and a record backlog that has now surpassed $2.3 billion, alongside more than $1 billion in new contracts signed over the quarter. The market’s initial reaction was lukewarm, with shares dipping on softer Q3 margin guidance tied to heavy Neutron spending. But with the print now digested, investors can shift their focus from the quarter that was to the catalysts ahead.

The Contract Wins Keep Coming

If there is one thing that has not slowed during the share-price slump, it is Rocket Lab’s ability to win business. Just in the past week, the company was onboarded to the U.S. Space Force’s NITE-STAR program, a training and wargames architecture effort carrying a ceiling of up to $981 million across its participants. It also captured a geostationary satellite bus role from Viasat for a protected military communications system and secured a separate award tied to the Space Force’s Space Data Network. Those follow the $397 million Flatellite contract and the record $266 million missile-defense launch deal announced earlier in August.

The pattern is unmistakable. Rocket Lab is steadily transforming itself into a genuine national security contractor, with a defense backlog that keeps compounding regardless of what the stock price is doing on any given day.

Why the Stock Hasn’t Rallied on the News

Here is the tension every prospective buyer has to weigh. Despite the relentless flow of contract announcements over the past several months, the stock has repeatedly sold off or gone sideways on the news. That disconnect comes down to two things: valuation and Neutron. Even after its steep decline, Rocket Lab trades at more than 70 times trailing sales, an extraordinary multiple for a company that remains unprofitable, with a trailing net loss near $198 million. The market is essentially demanding proof before it pays up again.

And of course, that proof is Neutron. The rocket that opens the door to a much bigger addressable market, and the vehicle meant to launch programs like the Flatellite constellation, has slipped to a fourth-quarter debut after a Stage 1 tank issue. Until Neutron actually flies, a portion of the bull case remains theoretical, and the stock is likely to stay volatile.

So, Is It Safe to Buy?

“Safe” is probably the wrong word for a stock with a beta of 2.6 that can swing double digits in a week. But for investors focused on the long term rather than the next month, the setup is arguably more attractive than it has been since spring. The selling pressure from the SpaceX rotation is clearly fading, the fundamental business is posting the best operational numbers in its history, and the defense pipeline is deepening by the week.

For the technically minded, there is also a well-defined level to risk against. The $60 area has been tested multiple times across several years and firmed up as support once again in late July, when the stock bounced sharply off it. That is the line the bulls will want to see defended going forward.

The analyst community remains firmly in the bull camp, too, despite the stock’s almost 50% haircut from recent 52-week highs. The consensus rating across 22 analysts is Moderate Buy, with an average price target of $110.65, implying about 50% upside from current levels. Notably, of the 22 analysts that cover the stock, only 1 analyst has assigned RKLB a Sell rating.

For those who believe in Rocket Lab’s vertically integrated vision, the current zone, with the stock down sharply from its highs but the business stronger than ever, offers a more reasonable entry than chasing it at $150 ever did. The real re-rating likely waits until Neutron leaves the pad. READ THIS STORY ONLINE

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