VYM: Risk Premium Still Near 10-Year Peak Despite Treasury Rates Decline
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The Vanguard High Dividend Yield ETF (VYM) maintains a high risk premium near a 10-year peak, even as Treasury rates decline. This suggests that investors may still perceive significant risk in high dividend yield stocks.
March 03, 2025 | 3:15 pm
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Vanguard High Dividend Yield ETF (VYM) continues to have a high risk premium near a 10-year peak, indicating perceived risk in high dividend yield stocks despite declining Treasury rates.
The high risk premium suggests that investors are cautious about high dividend yield stocks, even as Treasury rates decline. This could mean that VYM's price may not see significant movement in the short term, as the market balances risk perception with yield opportunities.
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