| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
| $130.54 | 0.0000 | 6.87 | 2.86% | 0 | 1 day ago | ||||
| $548.77 | 0.0000 | 21.07 | 1.29% | 0 | 1 day ago |
Ready to elevate your investment game this July? Let’s dive into two Vanguard ETFs that are not just attractive opportunities but are screaming buys—**[Vanguard High Dividend Yield ETF](https://marketmonitors.wpenginepowered.com/stock/quote/VYM/)** (VYM) and **[Vanguard S&P 500 ETF](https://marketmonitors.wpenginepowered.com/stock/quote/VOO/)** (VOO). These ETFs serve as cost-effective pathways to diverse stock portfolios, making them suitable for both newcomers and seasoned investors. Embrace the excitement that stems from their low expense ratios, broad diversification, and significant holdings in top-performing sectors and companies.
Editor's Note: Analysis and insight for this article were originally sourced from our friends at **[Motley Fool](https://www.fool.com/investing/2024/07/08/2-top-notch-vanguard-etfs-that-are-screaming-buys/)**
Built for Income-Focused Investors
The **[Vanguard High Dividend Yield ETF](https://marketmonitors.wpenginepowered.com/stock/quote/VYM/)** (VYM) is your go-to choice if you’re an income-focused investor. This ETF specializes in high-dividend yield stocks, and its low expense ratio makes it not just smart but economical. It primarily holds large-cap value stocks known for providing stability and consistent returns.
Investing parallels gardening—both require work, patience, and a bit of specialized knowledge. However, with a little help, anyone can cultivate a flourishing portfolio. One of the best tools in your investment toolbox should be ETFs. These versatile investment vehicles trade like stocks but embody many characteristics of mutual funds, making them an accessible option for diversifying your portfolio.
Top Holdings That Matter
**[JPMorgan Chase](https://marketmonitors.wpenginepowered.com/stock/quote/JPM/)** (JPM)
JPMorgan Chase makes up 3.5% of VYM’s assets. As a banking giant, it promises not only steady dividends but also financial stability. Embedded in the core of the financial sector, JPMorgan Chase is a cornerstone of VYM’s portfolio.
**[Broadcom](https://marketmonitors.wpenginepowered.com/stock/quote/AVGO/)** (AVGO)
With another 3.5% dedicated to Broadcom, this holding offers robust growth prospects in the ever-evolving tech sector, coupled with consistent dividend payouts. This positions Broadcom as a tech standout within VYM’s diversified framework.
**[ExxonMobil](https://marketmonitors.wpenginepowered.com/stock/quote/XOM/)** (XOM)
Representing 3.2% of VYM, ExxonMobil ensures reliable income from the energy sector—a sector notoriously known for its lucrative dividends. It’s a heavyweight contender that brings strategic value.
**[Proctor & Gamble](https://marketmonitors.wpenginepowered.com/stock/quote/PG/)** (PG)
Holding 2.3% in assets, Proctor & Gamble provides rock-solid stability through its longstanding performance in consumer goods. This makes it a reliable name in every diversified portfolio.
**[Johnson & Johnson](https://marketmonitors.wpenginepowered.com/stock/quote/JNJ/)** (JNJ)
With 2.1% in its holdings, Johnson & Johnson delivers reliable growth and income from the healthcare sector. Its consistent performance makes it an asset worth having.
Supporting Target Sectors
The fund tracks the FTSE High Dividend Yield Index, which comprises around 400 dividend-paying value stocks listed on U.S. exchanges. While some holdings are headquartered internationally, about 96% are American companies. The finance sector holds a 21% representation, followed by technology at 14%, healthcare at 11%, and consumer goods at 10%. Other significant sectors include energy (8%), utilities (7%), and retail (6%).
Why VYM is a Must-Have
- Low Expense Ratio: At a mere 0.06%, it’s highly cost-effective, granting you the advantage of more significant returns. For example, a $10,000 investment would incur just $6 in annual fees.
- High Dividend Yield: Perfect for generating a steady income stream, a feature especially invaluable for long-term income planning, notably for retirees.
- Broad Sector Exposure: Diversified across finance, technology, healthcare, and consumer goods, among others, this ETF offers well-rounded risk mitigation.
In short, VYM’s extremely low expense ratio and high dividend yield make it a savvy and cost-effective choice for income-seeking investors, achieving a blend of stability and substantial returns.
Analyst Ratings Table for VYM
| Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
|---|---|---|---|---|
| Moderate Buy | $132.75 | $118.31 | 11.21% | 557 |
Summary of Analyst Outlook
The VYM ETF, known for its strong dividend yield and diversified portfolio of high-dividend stocks, holds a consensus rating of Moderate Buy from analysts. With an average price target of $132.75, analysts expect a potential gain of about 11.2% based on the current price of $118.31. Wall Street analysts are optimistic about the ETF’s growth prospects, citing its impressive historical performance, low fees, and diverse holdings. Despite recent fluctuations, the overall sentiment remains supportive of VYM’s potential to increase in value over time.
The Definition of Long-Term Success
The second stellar pick is the **[Vanguard S&P 500 ETF](https://marketmonitors.wpenginepowered.com/stock/quote/VOO/)** (VOO), a fund synonymous with long-term investment success. VOO tracks the performance of 500 of the largest U.S. companies. Fans of a buy-and-hold strategy will find this low-cost, broad-market ETF irresistible. Over 40% of its holdings are in the booming tech sector, ensuring sustained robust growth.
Top Players in VOO’s Arsenal
**[Microsoft](https://marketmonitors.wpenginepowered.com/stock/quote/MSFT/)** (MSFT)
Microsoft holds a substantial 7% share of VOO. Known for its continuous growth and innovation in the tech realm, Microsoft remains a vital high-value asset in any portfolio.
**[Apple](https://marketmonitors.wpenginepowered.com/stock/quote/AAPL/)** (AAPL)
Taking up 6.3%, Apple stands out as a pioneer in technology and consumer electronics, boasting high returns and enviable stability. It’s the jewel in VOO’s tech-heavy crown.
**[Nvidia](https://marketmonitors.wpenginepowered.com/stock/quote/NVDA/)** (NVDA)
With 6.1% of assets, Nvidia stands at the forefront in AI and gaming, embodying future-focused growth. It’s a name that promises sustained performance.
**[Alphabet](https://marketmonitors.wpenginepowered.com/stock/quote/GOOG/)** (GOOG), **[GOOGL](https://marketmonitors.wpenginepowered.com/stock/quote/GOOGL/)**)
Holding 4.3%, Alphabet’s dominance in search and digital advertising makes it a steadily profitable tech juggernaut. It’s a foundational tech giant that guarantees strong returns.
**[Amazon](https://marketmonitors.wpenginepowered.com/stock/quote/AMZN/)** (AMZN)
At 3.6%, Amazon represents immense growth potential with its diverse operations, ranging from e-commerce to cloud computing. It’s a versatile holding that adds a multi-faceted edge to VOO.
Supporting Target Sectors
The fund tracks the S&P 500 index, one of the most widely followed indices. Given that tech stocks dominate today’s list of most valuable companies, over 40% of VOO’s holdings are from the tech industry. However, the fund also has substantial holdings in the finance (12%), healthcare (9%), and retail (8%) sectors. By maintaining a diversified portfolio, VOO mirrors the broader U.S. stock market’s performance, making it an ideal benchmark for investors.
What Makes VOO a Smart Investment
- Ultra-Low Expense Ratio: At just 0.03%, VOO is cheaper than most ETFs out there, benefiting investors with higher net returns. A $10,000 investment would result in a mere $3 annual fee.
- Diversification and Stability: By exposing you to top-tier companies across various sectors, VOO offers a balanced, robust investment option.
- Long-Term Growth: By focusing on the top 500 U.S. companies, VOO ensures exposure to industry leaders driving significant market innovations and growth.
In summary, this Vanguard ETF offers exposure to the most prominent companies on Wall Street, and investors in it contribute only a tiny amount of their hard-earned gains to the fund’s administrators. In the long run, this fund offers investors, new and old, a smart and easy way to invest for the future—and that’s a winning strategy.
Analyst Ratings Table for VOO
| Parameter | Value |
|---|---|
| Consensus Rating | Moderate Buy |
| Average Price Target | $605.80 |
| Current Price | $502.51 |
| Potential Gain | 20.56% |
| Number of Ratings | 504 (Wall Street analysts) |
Summary of Analyst Outlook
Analysts have given VOO a consensus rating of Moderate Buy, with an average price target of $605.80. The current price of $502.51 represents a 20.56% potential gain. Analysts are enthusiastic about VOO’s comprehensive exposure to large-cap U.S. stocks and appreciate the fund’s low operating costs. They highlight the fund’s ability to deliver robust and diversified growth, making it a solid pick for long-term buy-and-hold strategies.
