"The growing demand for artificial intelligence (AI) has given a boost to the stock market. Tech stocks have led the market higher, and there's been growing demand for AI products and services that have helped companies achieve higher valuations. Since valuations for many stocks have hit sky-high, investors have become cautious and are looking for low-cost alternatives to park their money."
"Vanguard is a popular name in the world of ETF investing and it offers a wide range of options for you to choose from. Vanguard has ETFs that can fit every investor's criteria. One of the most popular ETF, the Vanguard High Dividend Yield ETF (NYSEARCA:VYM) is a top choice for income investors. It has a yield as high as 2.39% and holds over 500 stocks. VYM has an expense ratio of 0.06% and offers ultimate diversification."
"The actively managed fund invests in a range of below investment-grade bonds, also known as "junk bonds." It aims to outperform the broader high-yield market. Junk bonds are high-yield bonds that also carry higher risk due to the lower credit rating. They represent debt issued by financially struggling companies and also offer a higher yield to compensate for the risk of default. Junk bonds have a higher risk as compared to fixed-income securities."
Growing demand for artificial intelligence has boosted the stock market and propelled tech valuations, prompting investors to seek lower-cost, diversified alternatives. Exchange-traded funds provide diversified exposure to sectors and income strategies with lower single-stock risk. Vanguard's High Dividend Yield ETF (VYM) yields about 2.39%, holds over 500 stocks, and charges a 0.06% expense ratio. Vanguard's High-Yield Active ETF (VGHY) targets below investment-grade bonds, yields 6.20%, charges a 0.22% expense ratio, holds 233 bonds with a 2.9-year average duration, pays monthly dividends, and includes some bonds with coupon rates above 10%, reflecting higher default and credit risk.
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