The Vanguard High Dividend Yield Index Fund (VHYA.X +0.00%) provides broad exposure to U.S. companies that have consistently paid above-average dividends. It emphasizes slower-growing, higher-yielding companies.
This passively managed mutual fund aims to track the returns of the FTSE High Dividend Yield index. The index tracks stocks of U.S. companies that have paid above-average dividends for the past 12 months, excluding real estate investment trusts (REITs).
As of mid-2026, the fund had $96.1 billion of net assets and held 605 stocks. The top five fund holdings were:
- Broadcom (AVGO +0.55%)
- JPMorgan Chase (JPM -0.82%)
- ExxonMobil (XOM +2.12%)
- Johnson & Johnson (JNJ -0.24%)
- Cisco Systems (CSCO -0.51%)
The fund had a 30-day SEC yield of 2.2% (more than double the S&P 500’s yield at the time) and distributed dividends quarterly. Like the FTSE High Dividend Yield index, the fund weights heavily toward industries known for paying attractive dividends. Its top five sectors were financials (19.6% of the fund’s holdings), technology (16.9%), industrials (13.9%), healthcare (11.7%), and energy (9%).
The passively managed mutual fund has an ultra-low expense ratio of 0.08%, well below the industry average. The fund also has a minimum investment of $3,000. It’s worth pointing out that Vanguard offers a similar exchange-traded fund (ETF), Vanguard High Dividend ETF (VYM -0.22%), with a slightly lower expense ratio (0.04%) and a low minimum investment of one share (around $160 as of mid-2026).