#Maximum drawdown vym how to#

SPHD's concentration allows it to deliver a higher dividend yield, which may be the most important factor for a dividend investor. SPHD has slightly higher ESG/SRI scores than VYM, if you care about that sort of thing.

SPHD also tilts smaller (Size factor) than VYM. These are going to be companies with more robust profitability and conservative investment policies. SPHD is looking for low-volatility stocks with a high dividend. VYM has slightly more loading on Value but much lower exposure to Profitability and Investment. Its sector weightings aren't going to look like the market, and indeed it has a lower correlation to the market than VYM. This means SPHD poses comparatively more concentration risk. Because of this, note that SPHD only has about 50 holdings while VYM has a little over 400. Unlike SPHD, VYM doesn't care about volatility. Stocks are taken from the FTSE® All-World Index, excluding REITs, and are ranked by forecasted dividend yield, from which the top half are selected for inclusion. Its selection methodology is pretty simple. The Vanguard High Dividend Yield ETF ( VYM) seeks to track the FTSE® High Dividend Yield Index. Constituent stocks are weighted based on their 12 month trailing dividend yield. As the name suggests, this index takes the highest dividend payers from the S&P 500 Index and then selects the lowest volatility companies among those, resulting in a basket of about 50 companies that doesn't really represent the broader market. It tracks the S&P 500 Low Volatility High Dividend Index, which is rebalanced semi-annually. SPHD is the Invesco S&P 500 High Dividend Low Volatility ETF. Sequence of Return Risk in Retirement Explained.The 4% Rule for Retirement Withdrawal Rate – A Revisitation.The 10 Best ETFs for Retirement Portfolios in 2023.M1 Borrow Review (How M1’s Margin Loan Works).8 Reasons Why I’m Not a Dividend Income Investor.

#Maximum drawdown vym how to#

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