I am researching the Vanguard High Dividend Yield ETF (VYM) to implement into my portfolio. My investment strategy is to hold long-term for retirement. I generally invest in index and sector funds. I have a moderate to high risk tolerance as I’m entering my mid twenties.
Could someone explain to me why an investor would choose a fund that produces a high dividend yield as opposed to growth-oriented funds? Are these dividend funds for investors that are aiming for a steady stream of income? Would allocation to these funds make sense for a younger investor with a high risk tolerance and long-term time horizon?
TLDR: Should a high yield dividend fund be on my radar as a young investor with a steady stream of income (full-time job), or am I better off with index funds?
View Reddit by leatherpajamas – View Source