The Vanguard High Dividend Yield ETF (Ticker: VYM) seeks investment results that correspond generally to the performance, before fees and expenses, of the FTSE High Dividend Yield Index. The index consists of stocks that are characterized by higher-than-average dividend yields. It is based on the U.S. component of the FTSE Global Equity Index Series (GEIS). Constituents are reviewed annually. Companies that have not paid a dividend during the previous 12 months are removed and real estate investment trusts (REITs) are excluded. The remaining stocks are ranked by annual dividend yield (approx. 1500 companies). Starting at the top of the list, the capitalization of companies on the list is added up until the cumulative market capitalization reaches 50% of the total market cap of this universe of stocks Approximately 500 companies make up the index. Constituents are then weighted based on market capitalization.