VHYL viable long-term investment? Dividend yield

**VanEck High Yield ETF (VHYL) appears to be a viable long-term investment**, and here's why: 1. **High Dividend Yield**: VHYL offers a high dividend yield of 9.49%, which is significantly higher than the average dividend yield of most ETFs and stocks. This indicates that the ETF is returning a substantial portion of its profits to shareholders, which can be attractive to income-focused investors. 2. **Diversified Portfolio**: The ETF invests in a diversified portfolio of high-yield bonds, which helps mitigate risk and provides exposure to various sectors of the bond market. 3. **Tax-Efficient Structure**: VanEck ETFs are known for their tax efficiency, and VHYL is no exception. The ETF uses a combination of short-term and long-term capital gains to achieve a blended tax rate that can provide investors with greater after-tax returns over time. 4. **Strong Fund Performance**: VHYL has shown strong performance over time, with an average annual total return of 4.7% over the past five years and 7.0% over the past ten years. This consistent performance is a positive sign for long-term investors, as it suggests that the fund is able to generate returns without significant volatility. 5. **Low Expense Ratio**: The net expense ratio for VHYL is 0.68%, which is relatively low compared to other ETFs. This means that the fund is able to keep more of its returns rather than spending on fees, which can enhance the long-term returns for investors. In conclusion, VHYL offers a high dividend yield, diversified portfolio, tax-efficient structure, strong fund performance, and low expense ratio, making it a viable long-term investment option for income-focused investors.