Vanguard’s VIG targets dividend growth, while VYM prioritizes higher current yields, with identical 0.04% expense ratios.
Vanguard Dividend Appreciation ETF (VIG) and High Dividend Yield ETF (VYM) serve equity income investors with distinct strategies. VIG selects companies with at least 10 consecutive years of dividend increases, emphasizing stability and growth. VYM, meanwhile, screens for higher current yields across a broader stock universe.
Both funds share a 0.04% expense ratio, making cost a non-factor. VIG’s portfolio includes 338 stocks, heavily weighted in technology (26%), financial services (21%), and healthcare (16%). Top holdings feature Broadcom (5.42%), Apple (4.58%), and Microsoft (4.28%). VYM’s approach prioritizes immediate income over long-term dividend consistency.
Performance and risk metrics, including beta relative to the S&P 500, highlight their differing risk profiles. The choice hinges on investor preference for growth or yield in the current market environment.