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Summary The Vanguard FTSE Canadian High Yield ETF has been around for just over 10 years and currently has a TTM yield of 4.15%. The VDY ETF’s objective is to track the performance of the FTSE Canada High Dividend Yield Index using a full-replication strategy. The fund is heavily overweight Financials and Energy – two sectors that should do well in a high-inflation rising interest rate environment with high oil & gas prices. Today, I’ll take a closer look at the VDY ETF and see how it compares to the returns of SCHD: the Schwab U.S. Dividend Income ETF. franckreporter The Vanguard FTSE Canadian High Yield ETF (TSX: VDY:CA ) pays a monthly distribution and seeks to reward shareholders by investing in Canadian companies that deliver relatively high yield. On paper, the fund would appear to have an auspicious future given its over-weight in the Financial and Energy sectors. I say that because in a rising interest rate environment, banks typically benefit from higher net-interest-margin, or NIM. Meantime, all investors are aware of the challenges in the energy sector since Putin invaded Ukraine 10-months ago and arguably broke the global energy (and food) supply chains. Today, I’ll take a […]
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