The Largest Stock Holding in the Vanguard High Dividend Yield ETF Just Delivered Blowout Earnings. Here's Why the ETF Is Crushing the S&P 500 in 2026 and Worth Buying in March.
Why it matters: VYM’s AI‑powered earnings lift and diversified dividend growth make it a faster‑performing, lower‑volatility alternative to the S&P 500.
- Broadcom (AVGO) posted a 29% YoY revenue jump and 34% net‑income rise, fueled by AI‑chip sales that now make up half of its fiscal 2026 revenue.
- Vanguard High‑Dividend Yield ETF (VYM) outperformed the S&P 500 (1.03% vs 1.52% YTD) by leaning into financials, energy, industrials, consumer staples and utilities.
- The Motley Fool notes that while AI developers still favor Nvidia’s CUDA ecosystem, Broadcom’s custom AI chips and high‑margin networking gear give it a unique cost‑advantage for hyperscalers.
- Other top holdings—JPMorgan Chase, ExxonMobil, Johnson & Johnson, and Walmart—provide sector diversification and steady dividend growth, reinforcing VYM’s dividend‑growth focus over raw yield.
- Walmart (WMT) illustrates VYM’s philosophy: the fund keeps stocks even when yields dip, as long as dividend growth and business fundamentals stay strong.
Vanguard’s High‑Dividend Yield ETF (VYM) is beating the S&P 500 in 2026, thanks to a sector‑balanced tilt and a standout performance from its biggest holding, Broadcom. The chipmaker’s AI‑driven revenue surge and 15‑year dividend streak are propelling the fund’s 5% YTD gain versus the index’s 1.5% loss, making VYM a compelling buy in March.
