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Posted by
Two Blokes Jul 28 -
Filed in
Stock
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3 views
VYM has delivered strong 1-year performance and offers long-term dividend growth, but its heavy financial sector exposure is concerning as rate cuts loom. I am downgrading VYM from a buy to hold due to the risk that falling federal fund rates will hurt banks and financials, dragging down the ETF's NAV returns. While VYM has solid historical NAV growth, SCHD has outperformed it and offers better sector diversification, especially less exposure to the financial sector.
