If you invested $300 in the Vanguard High Dividend Yield ETF five years ago, here’s how much you would have today.

that much Vanguard High Dividend Yield ETF (VYM 0.61%) It has proven to be a profitable investment over the years. If you invested $300 in ETFs five years ago, you would have about $466 today. This is a return of 55.6%. But before you jump in, here are three things you need to know about this fund.

3 Things to Know About Vanguard’s High Dividend Yield ETF

One of the biggest factors that determines fund performance is the expense ratio. This is the amount the company charges annually for holding the ETF. The Vanguard High Dividend Yield ETF has an expense ratio of just 0.06%. Vanguard estimates the expense ratio for similar funds to be around 0.9%, making this ETF quite affordable in terms of expenses.

Vanguard’s High Dividend Yield ETF also shows less volatility than many market indices. beta vs. Dow Jones US Total Stock Market IndexFor example, it is only 0.74. This means that if the stock market falls 1%, this ETF is expected to fall just 0.74%.

But beta works both ways. Here’s the last thing you need to know about Vanguard’s High Dividend Yield ETF. It typically underperforms major market indices during bull markets. This ETF has increased its value by 55.6% over the past five years, while the S&P 500 has increased its value by 86.6% over the same period. That’s a significant difference.

In summary, the Vanguard High Dividend Yield ETF is a great option for income-oriented investors looking for a cost-effective way to invest in high-yield, low-volatility stocks. But if you’re looking for maximum upside, a simple S&P 500 index fund might be a better choice.