VOO vs VYM: Head-to-Head Comparison
VOO vs VYM: Vanguard S&P 500 ETF has an expense ratio of 0.03% while Vanguard High Dividend Yield ETF charges 0.06%. VOO holds 503 securities vs VYM's 550. 5-year returns: 15.80% vs 10.50%.
Last updated: April 2026
Growth vs Dividend
Quick Verdict
Both ETFs score equally well for beginners (9.5/10). Your choice depends on your specific investment goals.
Side-by-Side Comparison
| Metric | VOO | VYM |
|---|---|---|
| Expense Ratio | 0.03% | 0.06% |
| AUM | $560.0B | $60.0B |
| Dividend Yield | 1.30% | 2.80% |
| Holdings | 503 | 550 |
| 1-Year Return | 26.70% | 15.80% |
| 5-Year Return (Ann.) | 15.80% | 10.50% |
| 10-Year Return (Ann.) | 13.30% | 9.80% |
| Beta | 1.00 | 0.85 |
| P/E Ratio | 25.8 | 17.5 |
VOO 5-year annualized return is 15.80% compared to VYM's 10.50%. Over 10 years, VOO returned 13.30% vs VYM's 9.80%.
View data table
| Period | VOO Return | VYM Return |
|---|---|---|
| YTD | 3.20% | 2.10% |
| 1 Year | 26.70% | 15.80% |
| 3 Year | 11.20% | 7.80% |
| 5 Year | 15.80% | 10.50% |
| 10 Year | 13.30% | 9.80% |
Key Differences Between VOO and VYM
VOO (Vanguard S&P 500 ETF) is a u.s. large-cap blend fund managed by Vanguard. VOO tracks the S&P 500 index, giving you ownership in 500 of the largest U.S. companies in a single investment. It is one of the most popular ETFs in the world thanks to its ultra-low expense ratio and broad market exposure. For beginners, VOO is often recommended as a core portfolio holding because it provides instant diversification across America's leading businesses.
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 (0.03% vs 0.06%), number of holdings (503 vs 550), and 5-year returns (15.80% vs 10.50%).
VOO vs VYM multi-factor comparison: VOO has a 0.03% expense ratio, 15.80% 5-year return, 503 holdings, 1.00 beta, and 1.30% 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 | VOO | VYM |
|---|---|---|
| Expense Ratio | 0.03% | 0.06% |
| 5-Year Return | 15.80% | 10.50% |
| Holdings | 503 | 550 |
| Beta | 1.00 | 0.85 |
| Dividend Yield | 1.30% | 2.80% |
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Holdings Overlap Analysis
5%
Holdings Overlap
VOO and VYM share only 5% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
VOO and VYM share 5% of their top holdings (low overlap). VOO has 503 total holdings and VYM has 550. Common holdings include AVGO.
View data table
| Metric | VOO | VYM |
|---|---|---|
| Overlap | 5% | 5% |
| Unique Holdings | 95% | 95% |
| Total Holdings | 503 | 550 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
VOO
Fee cost: $258
VYM
Fee cost: $515
Over 20 years, the fee difference amounts to $257 on a $10,000 investment. VOO saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, VOO (0.03% fee) grows to $46,351 while VYM (0.06% fee) grows to $46,094. The fee difference costs $257.
View data table
| Year | VOO Value | VYM Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,673 | $14,653 |
| 10 | $21,529 | $21,470 |
| 15 | $31,590 | $31,458 |
| 20 | $46,351 | $46,094 |
Which One Should a Beginner Choose?
Choose VOO if: You want beginning investors looking for a simple core portfolio holding, long-term buy-and-hold investors seeking broad u.s. market exposure, cost-conscious investors who want minimal fees. It's managed by Vanguard with an expense ratio of 0.03%.
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 VOO and VYM?
Absolutely! With only 5% overlap, VOO 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 VOO or VYM?▾
Both ETFs score equally well for beginners (9.5/10). Your choice depends on your specific investment goals. However, both are solid options. VOO is best for investors who want beginning investors looking for a simple core portfolio holding, while VYM is better suited for income investors who want high dividends with broad diversification across 550+ stocks.
What is the difference between VOO and VYM?▾
VOO (Vanguard S&P 500 ETF) tracks u.s. large-cap blend investments with 503 holdings and a 0.03% expense ratio. VYM (Vanguard High Dividend Yield ETF) focuses on high dividend with 550 holdings at 0.06%. Their top holdings overlap by 5%.
Can I own both VOO and VYM?▾
Yes! With only 5% holdings overlap, VOO and VYM complement each other well. Owning both gives you broader diversification.