VOO vs VYM: Head-to-Head Comparison
Last updated: March 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
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%).
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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.
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.
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.
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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.