Tell me the appeal of VYM

saki_saki : Shamefully, I didn't know JEPQ, but I think the reason VYM is famous in the streets is because of its large total management cost and long history, so I can recommend it to beginners with confidence
Also, since the monthly distribution type has been excluded from the new NISA, it may be difficult for it to spread to the general public.
If you're a more detailed person, you might be able to understand other reasons

sm0919jp : I think QQQ is closer as a comparison target in terms of constituent stocks. Also, I don't think it's better than QQQ in terms of total returns.

genju8012 OP saki_saki : Thank you very much, that's right. However, even with specific accounts, distributions of about 8% are issued, so if you are aiming for high dividends, you think it would be better than VYM, but does that mean that the sense of security is still superior due to the operation period and total management amount?

genju8012 OP sm0919jp : Certainly, that's true when it comes to total returns. However, the dividends aren't high, and they can't keep up with the QQQ mullet.

saki_saki genju8012 OP : The operation period is still about one and a half years, so that factor may be significant... What is often said is that VTI, VOO, VYM, etc. “even if there is a sharp drop in the market price in the past, it has risen as a result,” but it may be a big thing that they haven't been able to prove that yet
Conversely, I wonder if those who can get into JEPQ are advanced players in a sense? I don't know if there are any other concerns ><

らすふわ : Is VYM a passive ETF
Are JEPQ and JEPI active ETFs
Each one has its own merits

Passive ETFs are linked to indices
It's an index, so it's mixed
Active ETFs are managed by a dedicated person selecting stocks, so there is a possibility that the operation will succeed or fail; it's like a select shop

If it can be operated for a long time, VYM is likely to win
VYM's dividends have been continuously increased since 2011
If you keep VYM for a long time, your dividends will increase continuously
There is a possibility that it will one day overtake JEPQ and JEPI
VYM's stock price is also expected to rise
JEPQ and JEPI use some structured bonds
Since volatility is suppressed, stock price increases are also mild

eg
At the end of 2012, VYM had a dividend yield of about 3.2%
If I bought it at the end of 2012 and kept holding it
The dividend yield at the end of 2023 will be approximately 6.8%
Stock prices too
About 50 dollars at the end of 2012
At the end of 2023, it's about 112 dollars
Stock prices and dividends in 2030 or 2040
It looks like you're going to get used to it

Can it perform as well as this?
That means the history is short, and the operation method is different
It can't be proven by JEPQ or JEPI
QYLD, a 100% structured bond, has not yet returned to its highest value

In other words
The longer you invest, the greater your return is VYM
If you want lots of dividends now
It's a bit risky, but JEPQ, JEPI
It can be thought

However, it's a story about if the next 10 years go the same way as the past 10

genju8012 OP : Very easy to understand, thank you. I realized that I assumed that VYM's dividend rate and stock price would naturally plateau somewhere, but will it continue to rise all the time?

らすふわ : I'm sorry
I don't know how ETFs work

If it's a company
Dividend Yield (%) = Dividend Amount/Stock Price*100
Right
In other words, when stock prices rise due to good performance
Dividend yields will fall
But since it's a good performance, we can increase our dividends again

If it's OK to apply it to VYM
As long as VYM's stock price continues to rise
It means that dividends can be increased

183819061 genju8012 OP : No, the lower the stock price, the better
The higher the unit price, the faster the decline in military funds

183819061 : The medium to long term is enough, and I won't be able to read it until a few years from now.