How Vanguard’s High Dividend Yield ETF Has Performed, Year by Year

VYM, the Vanguard High Dividend Yield ETF, launched in November 2006 and has returned about 9.4% a year since, including reinvested dividends. That turned $10,000 into roughly $59,500 by early November 2026, through two of the worst crashes in modern market history.

VYM’s story is unusual because of when it started. It opened less than a year before the 2007 market peak, lost nearly a third of its value in 2008, and took more than four years just to get back to where it began. Since then it has been one of the steadiest income funds in the market, holding up brilliantly in 2022, falling far behind in 2020 and 2023, and pulling ahead of the S&P 500 again in 2026.

This guide tells that story year by year. It covers how VYM was built, what happened in every calendar year since launch, how far it fell in each major decline and how long it took to recover, how its dividend changed, and what its record means for anyone holding it today.

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VYM at a Glance

All return figures in this guide are total returns, meaning they include dividends reinvested, unless stated otherwise. Past performance does not guarantee future results.

VYM Returns by Year

Over its 19 full calendar years, VYM finished higher in 16 and lower in three: 2008, 2018 and 2022. Only one of those losses, in 2008, was larger than 6%.

The Fund and the Index Behind It

VYM tracks the FTSE High Dividend Yield Index, which starts with the US stock market and picks out the companies expected to pay the highest dividends relative to their share price. Roughly the higher-yielding half of the market makes it in.

Unlike SCHD, VYM does not screen for quality measures such as debt levels or return on equity. Its holdings are weighted by company size, so large companies carry the most weight, and the index uses buffer zones at its yearly rebalance to keep trading low.

The index excludes real estate investment trusts, because most REIT payouts do not qualify for the lower tax rates on qualified dividends. The result is a broad fund of about 600 companies, much wider than SCHD’s 100.

That breadth shapes VYM’s history. It behaves more like the broad value side of the market than like a concentrated dividend strategy, and it holds very little of the fast-growing technology companies that pay small dividends or none.

The Launch: November 2006

VYM launched on November 10, 2006, as part of Vanguard’s expansion of its ETF lineup. Dividend ETFs were still new at the time: iShares had launched DVY in 2003, SPDR followed with SDY in 2005, and Vanguard had launched VIG, its dividend growth fund, earlier in 2006.

Vanguard’s pitch was simple: broad diversification, a higher yield than the market and very low costs. VYM was built to give investors a single low-cost fund for income from US stocks.

The timing proved difficult. The US housing market had already started to weaken, and banks, which were among the largest dividend payers in the country, were about to face the worst crisis in generations. VYM gained about 2.8% in its first weeks of trading to the end of 2006.

2007: A Quiet First Full Year

VYM returned about 1.4% in 2007, behind the S&P 500’s 5.2%. On the surface the year looked calm, and the market reached a record high in October.

Underneath, the trouble was building. Subprime mortgage losses began to surface in the summer, and bank and financial stocks started to slide. Because financial companies paid generous dividends, they made up a large part of high-yield indexes, and that dragged on VYM’s results.

VYM paid about $1.36 per share in dividends in 2007, its first full year of payouts. Its share price peaked on October 9, 2007, the same day as the broad market, and would not reach that level again for five and a half years.

2008: The Financial Crisis

2008 was the hardest year in VYM’s history. Lehman Brothers collapsed in September, credit markets froze, and stocks fell across the world.

VYM lost about 31.9% for the year. That was painful, but noticeably better than the S&P 500’s fall of about 36.8%, as VYM’s steadier consumer, healthcare and utility companies cushioned some of the damage from its banks.

By the end of 2008, an investor’s $10,000 from launch was worth about $7,100. The fund still paid out about $1.44 per share in dividends during the year, slightly more than in 2007, but the dividend cuts were only just beginning.

2009: The Bottom and the Dividend Cuts

The decline continued into early 2009. VYM’s price hit bottom on March 5, 2009, down about 58.8% from its 2007 peak, or about 57% including dividends. That remains its deepest fall by a wide margin.

The rebound that followed was powerful, and VYM returned about 17.2% for the year. It lagged the S&P 500’s 26.4%, because the strongest early gains went to beaten-down growth and technology stocks rather than income stocks.

2009 also brought VYM’s first dividend cut. Many banks and industrial companies slashed or suspended their payouts to preserve cash, and VYM’s annual dividend fell about 19% to around $1.17 per share. It was a reminder that a fund’s dividend is only as reliable as the companies paying it.

2010: Climbing Back

VYM returned about 14.2% in 2010, close to the S&P 500’s 15.1%. The economy was recovering slowly, and the Federal Reserve kept interest rates near zero to support it.

In May, the flash crash briefly wiped almost 1,000 points off the Dow in minutes, and the European debt crisis began to unsettle markets. Stocks recovered by the end of the year.

VYM’s dividend slipped again, by about 6.6% to $1.09 per share, as companies stayed cautious. By the end of 2010, an investor’s original $10,000 was worth about $9,500, still slightly below the starting point four years after launch.

2011: When Dividends Led

2011 was one of VYM’s best years relative to the market. In August, the United States lost its AAA credit rating for the first time, and fears about Europe’s debt crisis sent stocks sharply lower.

Investors rushed towards steady, income-paying companies. VYM returned about 10.6%, while the S&P 500 managed only about 1.9%, one of the widest gaps in VYM’s favor in its history.

By the end of 2011, the original $10,000 finally stood above its starting value, at about $10,500. Companies also began restoring their dividends, and VYM’s payout jumped about 21.6% to roughly $1.33 per share.

2012: The Fiscal Cliff Year

VYM returned about 12.7% in 2012, behind the S&P 500’s 16.0%. Financial stocks recovered strongly, and the broad market was helped by a rebound in technology.

The year ended with worries about the fiscal cliff, a set of tax rises and spending cuts due on January 1, 2013. Dividend investors were particularly concerned, because the tax rate on dividends could have risen sharply if no deal was reached.

A last-minute agreement kept qualified dividends taxed at favorable rates for most investors. Many companies paid their dividends early in December, before any tax change, and VYM’s payout for the year rose about 20% to around $1.59 per share.

The year also marked a milestone. In March 2012, counting reinvested dividends, VYM’s total return finally regained its October 2007 peak, about three years after the March 2009 low.

2013: VYM’s Best Year

2013 was an outstanding year for almost every US stock fund, and VYM returned about 30.1%, close to the S&P 500’s 32.3%. It remains VYM’s best calendar year.

The Federal Reserve’s bond-buying program kept interest rates low, which pushed investors towards dividend-paying stocks in search of income. Company profits rose and confidence returned.

In April 2013, VYM’s share price finally passed its October 2007 peak, about five and a half years later. By the end of the year, an investor’s $10,000 from launch had grown to about $15,400.

2014: Matching the Market

VYM returned about 13.5% in 2014, essentially level with the S&P 500. The bull market continued as the Federal Reserve wound down its bond buying.

Oil prices began to collapse in the second half of the year, falling from above $100 a barrel. VYM’s energy companies felt the pressure, but its spread across hundreds of companies limited the damage.

The fund’s dividend rose about 9.1%, to around $1.91 per share. That made four straight years of rising payouts after the cuts of 2009 and 2010.

2015: Flat Through the Oil Crash

VYM returned about 0.3% in 2015, slightly behind the S&P 500’s 1.2%. The oil crash deepened, hurting energy companies, and in August China’s surprise currency devaluation triggered a sharp global sell-off.

For VYM’s investors, the year was flat rather than painful. Its utilities, consumer staples and healthcare holdings held up as energy and industrial stocks fell.

The dividend rose about 12.6%, one of its strongest increases, to about $2.15 per share. Steady income helped carry total returns into positive territory in a year when the share price slipped.

2016: Value Comes Back

2016 was a strong year for VYM, which returned about 17.0% against the S&P 500’s 12.0%. After oil prices hit bottom in February, energy and industrial stocks rebounded sharply.

The surprise result of the US presidential election in November sparked a rally in banks and value stocks on expectations of tax cuts and lighter regulation. VYM, with heavy weightings in both, benefited.

By the end of 2016, an investor’s $10,000 from launch had passed $20,500, doubling in about 10 years. The fund’s dividend rose a more modest 2.7%.

2017: Calm and Steady

2017 was one of the calmest years in market history, with steady gains and very few pullbacks. VYM returned about 16.4%, a strong year that still trailed the S&P 500’s 21.7% as large technology companies led.

Strong global growth and the corporate tax cuts passed in December 2017 supported company profits. Lower corporate tax rates gave many companies more room to raise their dividends the following year.

VYM’s payout rose about 8.8% to around $2.40 per share. By now, its annual dividend was well above double its 2010 low.

2018: Two Sell-Offs and a Loss

2018 tested VYM twice. In late January, a sudden spike in volatility triggered a sharp sell-off, and the fund struggled to recover through the spring.

A second, larger decline followed in the fourth quarter, driven by rising interest rates, trade tensions with China and fears of a slowing economy. From its late January peak to Christmas Eve, VYM’s price fell about 18.9%.

VYM finished 2018 down about 5.9%, slightly worse than the S&P 500’s 4.6% loss. Its dividend still rose about 10.3% to around $2.65 per share, and its price regained its January 2018 peak in November 2019.

2019: A Strong Rebound

When the Federal Reserve paused its rate rises in early 2019 and then cut rates three times, markets bounced back strongly. VYM returned about 24.1%, behind the S&P 500’s 31.2% as technology stocks led the way.

Falling interest rates made dividend income more attractive, and VYM’s utilities and consumer staples companies did well. Its dividend rose about 7.3%, to around $2.84 per share.

By the end of 2019, the original $10,000 had grown to about $27,900. VYM had now nearly tripled an investor’s money since launch, despite starting just before the 2008 crash.

2020: The COVID Crash and VYM’s Worst Relative Year

In early 2020, the spread of COVID-19 triggered the fastest market crash in history. From mid-January to March 23, VYM’s price fell about 35.7%, a steeper drop than the broad market.

The recovery was uneven. Technology companies thrived as people worked, shopped and streamed from home, while banks, energy companies and industrial firms, all large parts of VYM, struggled through the recession.

VYM finished 2020 up only about 1.1%, against 18.3% for the S&P 500, one of the widest gaps against the market in its history. Its price did not regain its January peak until January 2021, and its dividend grew only about 2.3% as many of its companies held payouts steady or cut them.

2021: Reopening Rally

2021 was a strong year for almost everything, and VYM returned about 26.2%, close to the S&P 500’s 28.7%. Economies reopened, profits surged and value stocks had their best run in years.

Energy, financial and industrial companies, the areas that had hurt VYM in 2020, led the recovery. VYM’s dividend rose about 6.5% to around $3.10 per share.

By the end of 2021, an investor’s $10,000 from launch had grown to about $35,600. However, inflation was rising fast, setting up the year in which VYM would prove its value.

2022: VYM’s Defining Year

As inflation hit 40-year highs in 2022, the Federal Reserve raised interest rates at the fastest pace in decades, and the S&P 500 fell into a full bear market. The broad market lost about 18.2% for the year.

VYM lost only about 0.4%. Its price fell about 17.5% from January to its low on September 30, but its energy companies soared with oil prices, and its healthcare and consumer staples holdings held firm.

That near-flat result put VYM almost 18 percentage points ahead of the market, its best year relative to the S&P 500. It also edged out SCHD, which lost about 3.3%, and its dividend rose about 5% to roughly $3.25 per share.

2023: Left Behind Again

2023 reversed the story. Excitement about artificial intelligence drove huge gains in a small group of giant technology companies, and the S&P 500 returned about 26.2%.

VYM, which held few of those companies, returned only about 6.6%, almost 20 percentage points behind, the widest gap against the market in its history. Its share price did not regain its January 2022 peak until February 2024, more than two years after the decline began.

Still, VYM held up better than SCHD’s 4.5% in 2023. Its dividend rose about 7.0% to around $3.48 per share.

2024: A Chipmaker Takes the Top Spot

VYM returned about 17.6% in 2024, a solid year that still trailed the S&P 500’s 24.9%. Large technology companies continued to lead the market.

One technology company did help VYM. Broadcom, a chipmaker that pays a sizable dividend and so qualifies for the index, saw its shares soar on demand for AI chips. It became VYM’s largest holding by a wide margin, and today makes up about 6.9% of the fund.

VYM’s dividend was almost flat for the year, rising about 0.5% to around $3.49 per share. By the end of 2024, the original $10,000 had grown to about $44,400.

2025: The Tariff Shock

In early 2025, sweeping US tariff announcements triggered a sharp market sell-off. From February 19 to April 8, VYM’s price fell about 15.0%, its fastest decline since 2020.

The recovery was just as quick. VYM regained its February peak by early July, less than three months after the low, as tariff fears eased and company profits held up.

VYM returned about 15.4% for the year, close to the S&P 500’s 17.7% and well ahead of SCHD’s 4.3%. Its dividend was close to flat again, at about $3.50 per share.

2026: Ahead of the Market Again

Vanguard cut VYM’s expense ratio from 0.06% to 0.04% in February 2026. At the start of March, war between the United States and Iran sent oil prices above $100 a barrel.

VYM’s energy holdings, including ExxonMobil and Chevron, rose sharply as oil prices climbed. The fund reached an all-time high on August 13, 2026.

By early November, VYM was up about 16.2% for 2026, against about 11.2% for the S&P 500. It was a strong result, though well behind SCHD’s 34.1%, because VYM holds less energy and spreads its money across far more companies.

Every Major Fall at a Glance

These figures are measured on share price alone. Including reinvested dividends, the declines were slightly smaller and the recoveries came sooner. After the financial crisis, for example, VYM’s total return regained its 2007 peak in March 2012, about a year before its price did. In every case so far, VYM eventually recovered and went on to new highs.

How VYM Compared With the Market Over Time

From launch in November 2006 to early November 2026, VYM returned about 9.4% a year and the S&P 500, measured by SPY, about 10.8% a year. Over the same period, $10,000 in VYM grew to about $59,500, against about $77,200 in SPY.

Over the 10 full calendar years from 2016 to 2025, VYM returned about 11.3% a year against about 14.7% for the S&P 500. Over the five years from 2021 to 2025, it returned about 12.7% a year against 14.3%.

So VYM has trailed the S&P 500 over most long periods, mainly because it holds so little of the technology giants that have driven the market since 2010. In exchange, it has generally offered a higher yield and a smoother ride in downturns led by rising interest rates. FRC’s SPY performance history and VOO performance history tell the S&P 500 side of the same story.

The Dividend Story

VYM’s dividend has grown from about $1.36 per share in 2007 to about $3.50 in 2025, roughly two and a half times as much. That works out to average growth of about 5.4% a year, slower than SCHD’s but steady over the long run.

The path was not smooth. The payout fell in 2009 and again in 2010 as banks and other companies cut their dividends after the financial crisis, then climbed for 15 straight years, with growth slowing to almost nothing in 2024 and 2025.

VYM pays quarterly, usually in March, June, September and December. Its yield has typically been well above the S&P 500’s, and was about 2.3% in late 2026, lower than in past years mainly because its share price has risen.

For long-term investors, reinvesting those payouts made a large difference. Dividends added roughly three percentage points a year to VYM’s returns over most of its history, an example of compound interest at work.

What the Declines Taught VYM Investors

The first lesson is that a high-yield fund is still a stock fund. VYM lost more than half its value from 2007 to 2009 and fell more than a third in 2020, and its dividend focus did not prevent those losses.

The second is that a high yield can hide risk. In 2008 and 2009, many of the highest-yielding companies were banks under severe strain, and their dividend cuts pulled VYM’s income down for two years.

The third is that VYM tends to shine in particular kinds of downturns. In 2011 and 2022, when investors feared rising risks or rising interest rates, its steady value companies held up far better than the broad market. FRC’s guide to growth stocks vs value stocks explains why different styles take turns leading.

The fourth is patience. An investor who bought at launch was still below their starting value at the end of 2010, yet by 2026 had about six times their money.

How VYM Compares With Other Dividend Funds

VYM, SCHD and VIG are the three most popular US dividend ETFs, and their histories differ in useful ways. SCHD holds about 100 companies chosen for quality and dividend growth, VIG focuses on companies with long records of raising their dividends, and VYM simply holds the higher-yielding half of the market.

Those approaches produced very different results in key years. In 2020, VYM gained only about 1.1% while SCHD returned about 15.0%. In 2025, VYM returned about 15.4% against SCHD’s 4.3%, and in 2026 SCHD has surged ahead again.

FRC’s comparisons of SCHD vs VYM and VYM vs VIG explain these differences in detail. FRC’s SCHD performance history tells SCHD’s story year by year.

Covered call funds such as JEPI aim for higher income but give up more growth. FRC’s guide to covered call ETFs explains how they work.

Costs and Taxes Over VYM’s History

VYM has been one of the lowest-cost dividend funds throughout its history. At 0.04%, it now costs $4 a year for every $10,000 invested.

Like most Vanguard index ETFs, VYM has rarely distributed capital gains. Because it excludes REITs, most of its dividends have been qualified dividends, taxed at the lower long-term capital gains rates, which makes it reasonably efficient in a taxable account.

A higher-yield fund does create more taxable income each year than a broad market fund. FRC’s guides to qualified vs non-qualified dividends and how to choose tax-efficient ETFs explain how that income is taxed.

What VYM’s History Does Not Tell You

VYM’s 20-year record covers a specific period, including a financial crisis, a decade of near-zero interest rates, a historic run for technology stocks and an oil shock in 2026. Future returns may look very different.

Its holdings also shift as companies’ yields change. The VYM of 2026, with Broadcom as its largest holding and a large weighting in technology, is a different portfolio from the bank-heavy VYM of 2007.

Its start date also shapes its record. Because VYM launched just before the 2007 peak, its long-term average looks weaker than it would from almost any later starting point.

Is Your Money Safe in VYM?

VYM is a regulated investment company overseen by the SEC, with its holdings kept by an independent custodian and separate from Vanguard’s own assets. FRC’s guide to Is Vanguard Safe? explains how Vanguard is structured and regulated.

When you hold VYM at a SIPC member brokerage, your account is protected up to $500,000, including $250,000 in cash, if the brokerage fails and assets are missing. This protection does not cover market losses, such as VYM’s fall of more than half from 2007 to 2009.

VYM’s history shows that its value and its income can both fall. Its safeguards protect the safekeeping of your investment, not its value or its dividend.

Keep Learning

VYM’s first 20 years show that a high-yield fund can lose heavily in a crisis, cut its income, lag for long stretches and still reward patient investors. The investors who did best were usually those who understood what the fund owned and kept reinvesting through the hard years.

The FRC dictionary is more than a dictionary. It is a library of explainer videos, written explanations and on-page quizzes, so you can open any term, such as ex-dividend or diversification, and go deeper whenever something is unclear.

FRC’s programs and memberships are open to everyone. FRC’s Investing for Beginners guide and its guide to dollar-cost averaging vs lump sum are natural next steps.

Your Next Step

Since November 2006, VYM has returned about 9.4% a year, turned $10,000 into about $59,500 and grown its annual dividend from about $1.36 to about $3.50 per share. It fell more than half in the financial crisis, lagged badly in 2020 and 2023, held almost flat in the 2022 bear market and moved ahead of the market in 2026.

Use that history to set realistic expectations. A high-yield fund can fall sharply, cut its income and trail the market for years, so choose it for what it owns and hold it with a long-term view.