5 ETFs to Invest In For Beginners

4. Vanguard High Dividend Yield Index Fund (NYSE:VYM)

Vanguard High Dividend Yield Index Fund (NYSE:VYM) tracks the investment returns of the FTSE High Dividend Yield Index, which consists of companies characterized by high dividend yields. The fund follows a passively managed, full-replication approach, offering an expense ratio of 0.06%. The investments are concentrated in the industrials, healthcare, financials, energy, consumer discretionary, and consumer staples sectors. 

The biggest holding of Vanguard High Dividend Yield Index Fund (NYSE:VYM) is Johnson & Johnson (NYSE:JNJ), an American multinational healthcare company. Johnson & Johnson (NYSE:JNJ) is a notable dividend king, with 60 years of consistent dividend increases under its belt. On April 19, the company declared a $1.13 per share quarterly dividend, a 6.6% increase from its prior dividend of $1.06. The dividend is payable on June 7. Johnson & Johnson (NYSE:JNJ) delivers a dividend yield of 2.56% as of June 6. 

According to Insider Monkey’s data, 83 hedge funds were bullish on Johnson & Johnson (NYSE:JNJ) at the conclusion of the first quarter of 2022, with collective stakes worth $7.40 billion. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the biggest stakeholder of the company, with 6.65 million shares worth $1.17 billion.