Vanguard High Dividend ETF Seen Beating S&P 500 in 2026 Bear Market by 17.6 Points
Updated
Updated · The Motley Fool · Jul 31
Vanguard High Dividend ETF Seen Beating S&P 500 in 2026 Bear Market by 17.6 Points
3 articles · Updated · The Motley Fool · Jul 31
Summary
Vanguard High Dividend Yield ETF is being pitched as a defensive place to park money if a 2026 bear market hits, based on its stronger record in past downturns.
In 2022, VYM fell just 0.5% versus the S&P 500’s 18.1% drop; in 2008 it lost 31.9% against the index’s 37% decline and still led by 0.5 point by June 2009.
That resilience is tied to its mix of larger dividend-paying companies, which tend to be more stable and keep paying income through recessions, plus broad diversification across holdings.
The trade-off is weaker upside in rallies: since January 2023, VYM has gained 65.5%, far behind the S&P 500’s 102.8%, making broad-market funds like Vanguard’s VOO more attractive for long-term bull markets.