Read This Before Buying VYM. Retirement Investors Are Losing This Critical Income Sleeve.

Vanguard’s High Dividend Yield ETF (VYM) pitches itself as an income core holding, but its trailing yield has slipped to about 2.21%. The fund holds 604 dividend-paying U.S. companies for a 0.04% annual fee, yet its largest position is Broadcom, an AI-semiconductor stock, now at about 8% of net assets. VYM’s income is paid quarterly and is uneven: trailing 12-month total distributions were $3.63 per share, with an annualized forward figure of $3.92. Yield has compressed as prices rose, with 16% year-to-date, 21% over one year, and 76% over five years.