Investing in individual stocks can be time-consuming and challenging during market downturns. Consider investing in an exchange-traded fund like Vanguard High Dividend Yield ETF (VYM), which pays a 2.6% SEC yield and invests in 580 stocks, including top holdings like Broadcom and Walmart. The ETF offers a lower expense ratio of 0.06%.

The Vanguard High Dividend Yield ETF tracks companies with steady profit and dividend growth, offering a total return of 195% over the past 10 years. With only 12% of the portfolio allocated to tech stocks, it provides diversification across sectors, making it a more defensive play compared to the S&P 500 ETF.

As the S&P 500 trades at historically high earnings multiples, the Vanguard High Dividend Yield ETF could be a better defensive play in the face of potential market pullbacks. Excluding real estate investment trusts (REITs), the ETF offers stability and growth potential in uncertain market conditions.

Lower interest rates could drive more investors to the Vanguard High Dividend Yield ETF, providing a balanced blend of growth, income, and stability at a low fee. Considering the potential benefits of the ETF in a volatile market, it may attract more attention among investors seeking reliable long-term investments.

Read more at Yahoo Finance: Why the Vanguard High Dividend Yield ETF (VYM) Could Be the ETF to Own in 2025