VIG vs VYM: Head-to-Head Comparison
VIG vs VYM: Vanguard Dividend Appreciation ETF has an expense ratio of 0.06% while Vanguard High Dividend Yield ETF charges 0.06%. VIG holds 338 securities vs VYM's 550. 5-year returns: 13.10% vs 10.50%.
Last updated: April 2026
Dividend
Quick Verdict
VYM edges out VIG with a stronger Beginner Suitability Score (9.5 vs 9). It offers better overall characteristics for new investors.
Side-by-Side Comparison
| Metric | VIG | VYM |
|---|---|---|
| Expense Ratio | 0.06% | 0.06% |
| AUM | $86.0B | $60.0B |
| Dividend Yield | 1.70% | 2.80% |
| Holdings | 338 | 550 |
| 1-Year Return | 19.80% | 15.80% |
| 5-Year Return (Ann.) | 13.10% | 10.50% |
| 10-Year Return (Ann.) | 11.90% | 9.80% |
| Beta | 0.88 | 0.85 |
| P/E Ratio | 23.1 | 17.5 |
VIG 5-year annualized return is 13.10% compared to VYM's 10.50%. Over 10 years, VIG returned 11.90% vs VYM's 9.80%.
View data table
| Period | VIG Return | VYM Return |
|---|---|---|
| YTD | 2.50% | 2.10% |
| 1 Year | 19.80% | 15.80% |
| 3 Year | 8.90% | 7.80% |
| 5 Year | 13.10% | 10.50% |
| 10 Year | 11.90% | 9.80% |
Key Differences Between VIG and VYM
VIG (Vanguard Dividend Appreciation ETF) is a u.s. large-cap dividend growth fund managed by Vanguard. VIG invests in U.S. companies that have increased their dividends for at least 10 consecutive years, focusing on dividend growth rather than high current yield. This approach tends to select financially healthy companies with sustainable business models. Beginners who want quality companies that regularly reward shareholders will appreciate VIG's focus on consistent dividend growers.
VYM (Vanguard High Dividend Yield ETF) is a high dividend fund managed by Vanguard. VYM tracks an index of U.S. stocks that are forecasted to have above-average dividend yields, providing broad exposure to large-cap value companies. It holds around 550 stocks, making it more diversified than most dividend ETFs. Beginners who want income from their investments find VYM appealing because it combines a solid yield with Vanguard's trademark low costs and broad diversification.
The most notable differences are in fees (0.06% vs 0.06%), number of holdings (338 vs 550), and 5-year returns (13.10% vs 10.50%).
VIG vs VYM multi-factor comparison: VIG has a 0.06% expense ratio, 13.10% 5-year return, 338 holdings, 0.88 beta, and 1.70% yield. VYM has 0.06% expense ratio, 10.50% 5-year return, 550 holdings, 0.85 beta, and 2.80% yield.
View data table
| Metric | VIG | VYM |
|---|---|---|
| Expense Ratio | 0.06% | 0.06% |
| 5-Year Return | 13.10% | 10.50% |
| Holdings | 338 | 550 |
| Beta | 0.88 | 0.85 |
| Dividend Yield | 1.70% | 2.80% |
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Holdings Overlap Analysis
25%
Holdings Overlap
VIG and VYM share only 25% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
VIG and VYM share 25% of their top holdings (low overlap). VIG has 338 total holdings and VYM has 550. Common holdings include AVGO, JPM, HD.
View data table
| Metric | VIG | VYM |
|---|---|---|
| Overlap | 25% | 25% |
| Unique Holdings | 75% | 75% |
| Total Holdings | 338 | 550 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
VIG
Fee cost: $515
VYM
Fee cost: $515
Over 20 years, the fee difference amounts to $0 on a $10,000 investment. The cost difference is negligible — choose based on other factors.
On a $10,000 investment over 20 years at 8% return, VIG (0.06% fee) grows to $46,094 while VYM (0.06% fee) grows to $46,094. The fee difference costs $0.
View data table
| Year | VIG Value | VYM Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,653 | $14,653 |
| 10 | $21,470 | $21,470 |
| 15 | $31,458 | $31,458 |
| 20 | $46,094 | $46,094 |
Which One Should a Beginner Choose?
Choose VIG if: You want long-term investors who want dividend growth compounding over decades, investors seeking a balance between growth potential and income reliability, those who prefer quality companies with proven financial discipline. It's managed by Vanguard with an expense ratio of 0.06%.
Choose VYM if: You want income investors who want high dividends with broad diversification across 550+ stocks, conservative investors seeking a value-oriented approach with defensive characteristics, those who prefer vanguard's indexing philosophy applied to high-dividend stocks. It's managed by Vanguard with an expense ratio of 0.06%.
Can You Own Both VIG and VYM?
Absolutely! With only 25% overlap, VIG and VYM complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy VIG or VYM?▾
VYM edges out VIG with a stronger Beginner Suitability Score (9.5 vs 9). It offers better overall characteristics for new investors. However, both are solid options. VIG is best for investors who want long-term investors who want dividend growth compounding over decades, while VYM is better suited for income investors who want high dividends with broad diversification across 550+ stocks.
What is the difference between VIG and VYM?▾
VIG (Vanguard Dividend Appreciation ETF) tracks u.s. large-cap dividend growth investments with 338 holdings and a 0.06% expense ratio. VYM (Vanguard High Dividend Yield ETF) focuses on high dividend with 550 holdings at 0.06%. Their top holdings overlap by 25%.
Can I own both VIG and VYM?▾
Yes! With only 25% holdings overlap, VIG and VYM complement each other well. Owning both gives you broader diversification.