Alright I know this is going to be a stupid question but I have nowhere else to ask. How does vanguards high yield dividend ETF work? Do you actually get a quarterly dividend? Are it a worthwhile fund?
what's the ticker for vanguard? I can't find it on polo
>>2858219
https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=0623
http://www.morningstar.com/funds/xnas/vhdyx/quote.html
Bump for interest.
>>2858186
The ETF is run by an algorithm that invests in stocks based on certain metrics. The high-yield one invests in an entire portfolio of individual stocks that have high yields (although the actual yields may vary within a preset range). By investing in the ETF you limit the risk of a single stock tanking but are also limited in the amount of upside (gains) you can realize.
The ETF does pay quarterly dividends but depending on your preferences, the dividends most likely simply get reinvested back into the ETF. This is essentially compounding the interest for you, which is what you likely want if you are investing in an ETF in the first place.
Can't answer whether its a worthwhile fund. It depends on your risk tolerance, goals, and financial situation. Vanguard has a reputation for being extremely safe and (generally) well-run.
You can also call an investment adviser and have them break everything down for you. Don't agree to anything, just ask for a consultation.
Bumping for exposure.
>>2858186
yes it pays out around $0.20 in quarterly dividend. worthwhile dunno
>>2858250
so vanguard high dividend yield did exactly the same as the S+P ?