Three Vanguard Income ETFs With Yields Up to 3.71%, but Only One Outpaced the S&P 500
Three Vanguard ETFs currently yield between 2.9% and 3.7%. VYMI gained about 25% over one year and 88% over five years, while VNQ had the highest yield but only a 3% five-year total return. VPU lost 6% over the past year as higher Treasury yields drew income investors away.
VYMI follows an index of non-U.S. developed and emerging-market companies expected to produce above-average dividends, excluding REITs, and charges 0.07% annually. Its distributions can vary by quarter because many foreign firms pay once or twice a year; recent payouts included $1.2569 and $0.817 per share.
VNQ owns U.S. equity REITs and real estate firms, costs 0.13%, and must pass through substantial income because REITs generally distribute at least 90% of taxable income to retain tax status. VPU’s recent decline came as higher Treasury yields offered income seekers a 5.2% alternative.
For retirees and income-focused savers, the contrast between steady payouts and weak total returns could shape retirement budgets and risk tolerance. Higher Treasury yields may pull cautious investors away from utilities and real estate, potentially altering demand for those funds. Younger investors may use these examples to weigh yield against long-term growth, though past performance cannot predict future results.