What does the 'Index tracked: not available' mean in the comparison?

The 'Index tracked: not available' field in the comparison indicates that the underlying index being tracked by each ETF cannot be identified based on the available information. An index is a statistical measure of the changes in a portfolio of stocks or other securities. Tracking it helps ETFs replicate a particular market segment. This field being 'not available' does not impact other comparison metrics like yield or expense ratios but suggests that we should refer to fund documentation for precise index tracking details.

What is the difference between a high dividend and an ETF's dividend yield?

The term 'high dividend' typically refers to a stock with a relatively higher annual dividend compared to its peers. However, a fund's dividend yield represents the total return on investment in the form of dividends, expressed as a percentage of the fund's net asset value per share. For instance, VYM and DIVB are both ETFs that focus on dividend-paying stocks, but their yields, such as 2.31% and 2.22%, indicate the percentage return they deliver via distributions relative to their price.

Why do expense ratios matter when comparing these two ETFs?

Expense ratios represent the annual fees charged by the fund to cover its costs. Lower expense ratios mean more of your money stays invested and grows. For instance, VYM's 0.04% expense ratio slightly edges out DIVB's 0.05% expense ratio. This small difference may seem negligible, but over a long-term investment horizon, compounding can amplify the impact of these fees, making the fund with the lower ratio potentially more efficient. This makes cost an important consideration for long-term investors.

How do the top holdings of VYM and DIVB differ?

VYM and DIVB share some common top holdings like JPM, XOM, JNJ, and ABBV. Yet, their top portfolios also reveal significant differences. VYM places more emphasis on high-growth tech firms like AVGO, while DIVB focuses more on traditional value companies such as IBM and ADP. This means VYM leans towards a more diversified and growth-oriented approach, while DIVB maintains a stronger tilt towards established blue-chip value stocks. The specific mix of holdings reflects each fund's unique strategy to balance yield with growth and diversification.

What are the implications of a large net asset size for an ETF?

A large net asset size often implies that the ETF is more established and potentially offers more liquidity. VYM, with $80.9 billion in assets, has significantly more resources to invest than DIVB's $2.0 billion. This larger scale may allow VYM to achieve economies of scale, potentially making it more cost-efficient and easier to trade. On the other hand, a smaller fund like DIVB might have a harder time achieving economies of scale and could be less liquid, which can influence trading costs and execution prices.

How do the top ten holdings reflect each fund's exposure to market sectors?

While specific sector weights are not available in the provided information, looking at the top ten holdings can give insights into sector exposure. For instance, both VYM and DIVB hold financial (JPM) and energy (XOM) stocks. VYM's significant holding of AVGO (Broadcom) reflects its exposure to technology. On the other hand, DIVB's emphasis on IBM, ADP, and ACN suggests a stronger tilt towards technology and consulting services. These holdings indicate that each fund's portfolio composition reflects the sector dynamics they track, potentially impacting their performance during certain market cycles.

Is there a significant difference in the inception dates of these two ETFs?

The inception dates of VYM and DIVB are November 10, 2006, and November 7, 2017, respectively. This means VYM is approximately a decade older than DIVB. An older fund like VYM might have a longer track record and more stable operating history, potentially providing more data on its performance through various market cycles. In contrast, DIVB, while newer, may benefit from more recent strategies and technologies. The time span since inception can be a relevant factor when assessing the maturity and stability of an investment option.

What considerations should I make regarding single-stock risk?

Single-stock risk refers to the potential for significant fluctuations in an ETF's performance based on the performance of a single stock. VYM's 6.93% in AVGO and DIVB's 4.89% in IBM illustrate how each fund may be more heavily weighted towards certain companies. A large position in a single stock can introduce concentration risk, potentially leading to higher volatility. Investors should assess whether the risk profile of these top holdings aligns with their investment strategy and risk tolerance. Diversification is often considered a key factor in managing single-stock risk in ETFs.

How does the dividend yield influence my investment decision?

The dividend yield reflects the return from dividends relative to the ETF's share price. VYM's 2.31% yield is slightly higher than DIVB's 2.22%, making it marginally more attractive for income-focused investors. However, a higher yield is not always better; it could indicate other underlying factors. Investors should consider whether the yield is sustainable and aligns with their income needs and tax situation. The yield serves as one criterion among many to compare and evaluate the performance and risk of these ETFs.

What is the importance of the shared top-10 holdings?

Both VYM and DIVB have four shared top-10 holdings: JPM, XOM, JNJ, and ABBV. This commonality reflects their focus on large, established companies across sectors such as financials, energy, and healthcare. Despite the shared positions, their overall strategies differ, influencing their performance profiles. For example, VYM’s heavier weighting in growth tech stocks might align more with its broader investment strategy, while DIVB might favor more traditional value firms. These shared holdings provide some assurance of a foundational investment in quality, well-known entities.

What are the benefits of a lower expense ratio?

The benefits of a lower expense ratio lie primarily in the long-term compounding effect. VYM's expense ratio of 0.04% is slightly lower than DIVB's 0.05%. Over time, this seemingly minor difference can accumulate, potentially enhancing the investor's net return on investment. It's essential to consider this factor alongside other metrics such as yield and holdings. The lower the expense ratio, the more cost-effective the ETF, particularly for long-term investors seeking to maximize their portfolio's growth.

Does the age of an ETF matter when comparing it to other funds?

The age of an ETF can matter to some extent when considering its track record. VYM has been around since November 2006, providing a decade more of historical data on performance and operations than DIVB, which launched in November 2017. This means that VYM may have a more stable and established reputation among investors and a longer history for analyzing performance under various market conditions. Conversely, newer funds like DIVB might have adapted better to current market trends, offering newer technologies and investment methods.

DIVB vs VYM

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare iShares Core Dividend ETF (DIVB) and Vanguard High Dividend Yield ETF (VYM) side-by-side. This page examines fees, holdings, dividends and how each fund tracks its market to help you evaluate large value options. Educational content, not financial advice.

Compare iShares Core Dividend ETF (DIVB) and Vanguard High Dividend Yield ETF (VYM) side-by-side. This page examines fees, holdings, dividends and how each fund tracks its market to help you evaluate ...

Fund Snapshot

Key Fund Metrics

DIVB

Metric

VYM

0.05%

Expense Ratio

0.04%

2.22%

Dividend Yield

2.31%

$2.04B

Net Assets

$80.88B

384

Holdings

613

Nov 7, 2017

Inception Date

Nov 10, 2006

–

Index Tracked

–

Large Value

Fund Category

Large Value

VYM costs about $1.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	DIVB	VYM
JPMJPMorgan Chase & Co.	2.60%	3.83%
XOMExxonMobil Holdings Corporation	2.55%	2.69%
JNJJohnson & Johnson	2.13%	2.58%
ABBVAbbVie Inc.	1.84%	1.83%

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Investment Analysis

DIVB

Pros

DIVB's 0.05% expense ratio helps reduce long-term costs for dividend-focused investors.
Its top holdings include IBM and ADP, giving a tilt towards technology and consulting firms.
JPM and XOM provide financial and energy exposure alongside the fund's core dividend strategy.

Considerations

DIVB's 2.22% yield is slightly lower than some peers, such as VYM's 2.31%.
The 4.89% weight in IBM may expose the fund to significant single-stock risk.
DIVB's $2.0 billion size is small compared to large ETFs, limiting potential economies of scale.

VYM

Pros

VYM's 0.04% expense ratio offers low costs for investors seeking high dividend exposure.
With $80.9 billion in assets, it is one of the largest ETFs in its category.
Its 2.31% yield slightly exceeds DIVB's, providing a comparable return profile.

Considerations

AVGO's 6.93% holding weight increases concentration risk in a single stock.
VYM's top ten holdings may not offer enough diversification for some investors.
Its dividend strategy might lag during periods when growth stocks outperform value stocks.

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About DIVB and VYM

DIVB (DIVB)

iShares Core Dividend ETF (DIVB) is an exchange-traded fund that seeks to provide investors with exposure to a diversified portfolio of dividend-paying companies. It is designed for those looking for income and broad equity exposure in a single, tradeable instrument. The fund typically holds a mix of companies across sectors that historically pay dividends, aiming to smooth income streams compared with individual stocks. Investors should note that dividend payments are not guaranteed and can fluctuate with company earnings and economic conditions. As an ETF, DIVB offers intraday liquidity and may be more cost-effective and tax-efficient than holding multiple individual equities, though fees and tracking error can affect returns. Market capitalisation data for the ETF is not provided here. This summary is for general educational purposes only and is not personalised investment advice. Always consider your risk tolerance, investment horizon and seek independent advice if unsure, as values can rise or fall and past performance is not a reliable indicator of future results.

VYM (VYM)

The Vanguard High Dividend Yield ETF is designed to provide investors with exposure to a broad range of high-dividend-paying stocks listed in the US. With a low expense ratio of 0.04% and over 600 holdings, the fund aims to deliver income while maintaining diversification. Its dividend yield sits at 2.31%, reflecting its focus on companies with strong payout traditions. This ETF suits those seeking a steady income stream as part of a long-term strategy, though values can rise and fall. Returns are not guaranteed. Always consider your personal circumstances before investing.

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DIVB vs VYM

Fund Snapshot