ETF Investing for Passive Income: A Vanguard Approach

Investors seeking long-term passive income streams are increasingly turning to exchange-traded funds (ETFs) as a low-maintenance alternative to stock picking or real estate. The Vanguard High Dividend Yield ETF (VYM) emerges as a standout choice, having outperformed peers with a 0.66% gain and delivering superior total returns over five years.

This passively managed fund tracks the FTSE High Dividend Yield Index, eliminating the need for active stock selection while providing exposure to income-generating equities. The ETF structure bypasses the operational burdens of traditional investments—no property maintenance or tenant management required, just systematic dividend collection.

Vanguard's offering exemplifies the shift toward instrument-based wealth building in retail finance. With a modest expense ratio, the fund democratizes access to institutional-grade income strategies previously reserved for hedge funds or high-net-worth individuals.