VYM vs DVY: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between VYM and DVY

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.

DVY (iShares Select Dividend ETF) is a high dividend fund managed by BlackRock. DVY tracks the Dow Jones U.S. Select Dividend Index, focusing on U.S. companies with a strong track record of consistently paying dividends. It screens for dividend yield, payout ratio, and dividend growth history to find reliable income producers. The fund tends to favor utilities, financials, and consumer staples companies that prioritize returning cash to shareholders.

The most notable differences are in fees (0.06% vs 0.38%), number of holdings (550 vs 100), and 5-year returns (10.50% vs 7.00%).

Holdings Overlap Analysis

VYM and DVY share only 0% 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):

Over 20 years, the fee difference amounts to $2,658 on a $10,000 investment. VYM saves you more in fees over time.

Which One Should a Beginner Choose?

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%.

Choose DVY if: You want retirees who need consistent income from their investment portfolio, income-focused investors willing to pay a higher expense ratio for specialized dividend screening, conservative investors seeking lower-volatility equity exposure through dividend stocks. It's managed by BlackRock with an expense ratio of 0.38%.

Can You Own Both VYM and DVY?

Absolutely! With only 0% overlap, VYM and DVY 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