What do the expense ratios tell us about the cost of VIG versus VTV?

The expense ratio represents the annual operating fee. VIG has a ratio of 0.04%, while VTV is slightly lower at 0.03%. Over time, even a difference of 0.01 percentage points affects the net return an investor receives. Lower fees allow for more efficient compounding. Both funds are low-cost compared to active alternatives, but VTV is technically the cheaper option based strictly on these stated expense figures.

How do the net assets of these two Vanguard funds compare?

Net assets indicate the fund's size. VTV holds $191.1 billion, making it significantly larger than VIG, which holds $110.8 billion. Larger asset bases often contribute to tighter trading spreads and stable liquidity. While both are substantial, VTV's larger size may appeal to traders looking for highly liquid markets, though both funds benefit from Vanguard's large platform and institutional-scale operational stability.

What does the inception date reveal about the history of these ETFs?

The inception date shows how long a fund has been operating. VTV launched on January 26, 2004, whereas VIG started on April 21, 2006. This means VTV has a longer track record, providing a few more years of historical data for investors. While both funds have been present through various market cycles, the earlier launch date of VTV offers a slightly more extensive operational history for analysis.

How do the top holdings of VIG and VTV differ?

VIG and VTV hold distinct portfolios. VIG's largest position is MSFT at 4.68%, followed by AAPL and AVGO. In contrast, VTV is led by MU at 3.94%, followed by JPM and BRK.B. This demonstrates that while both are large-cap funds, their selection criteria differ significantly. VIG focuses on companies with growth characteristics like technology, while VTV selects based on value metrics, leading to different primary exposures.

What is the level of overlap between the two funds?

The two funds share four stocks within their respective top 10 holdings: JPM, XOM, JNJ, and WMT. Despite these overlaps, the remaining top positions are entirely different. VIG features heavy tech exposure with Apple and Microsoft, whereas VTV includes Berkshire Hathaway and AbbVie. This moderate overlap suggests the funds offer distinct benefits and are not direct substitutes, but rather complementary tools for different portfolio construction strategies.

How do these ETFs handle dividend distributions?

Dividend yield reflects the annual payout relative to the price. VTV currently yields 1.85%, which is higher than VIG's 1.51%. Generally, ETFs accumulate income from holdings and distribute it to shareholders. While VIG screens for dividend growers, which might sacrifice immediate yield for growth potential, VTV's value-oriented approach has resulted in a higher current payout ratio, though neither fund is considered a dedicated high-dividend strategy.

Do we know the specific indexes these funds track?

Currently, the specific index tracked by both funds is 'not available' in the provided data. However, VIG falls under the Large Blend category, while VTV is classified as Large Value. This categorization implies that despite the missing index names, VTV likely tracks a value-based selection, whereas VIG targets a blend focused on dividend growth. Investors relying on exact index tracking for style replication should note this transparency limitation.

What sector information is provided for these funds?

The provided fund data lists 'not available' for sector weights for both VIG and VTV. Without explicit sector breakdowns, investors cannot precisely determine their industry exposure from this comparison alone. Typically, dividend appreciation strategies (VIG) may tilt towards technology and healthcare, while value funds (VTV) often overweight financials and energy. However, specific allocation verification would require further external data sources.

How does the top holding concentration compare?

Both funds exhibit well-diversified top holdings without excessive concentration. VIG's highest allocation is MSFT at 4.68%, while VTV's largest is MU at 3.94%. These figures are generally considered low for a top position in a diversified ETF, suggesting that neither fund relies heavily on a single stock for performance. This structure reduces specific risk associated with any one company's performance driving the entire fund.

How does the transparency gap affect investor analysis?

A notable limitation in the current data is that both funds lack available index methodologies and sector weights. This reduces transparency regarding exactly how securities are screened or how capital is distributed across industries. Investors must rely on the 'Large Blend' and 'Large Value' category labels rather than precise mechanical data, potentially complicating detailed asset allocation or tracking error assessments.

What educational takeaway should beginners have from this comparison?

This FAQ provides educational content for informational purposes only and does not constitute financial advice or a recommendation to buy or sell. It demonstrates that while VIG and VTV share Vanguard's low-cost structure and some top holdings like JPM and XOM, their yields, top stock composition, and market capitalisation focus differ significantly for distinct portfolio roles.

VIG vs VTV

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

Explore VIG and VTV: compare expense ratios, dividends, holdings and tracking. VIG charges 0.04% with 1.51% yield; VTV costs 0.03% with 1.85% yield. Both Vanguard ETFs share JPM, XOM, JNJ and WMT. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

VIG

Metric

VTV

0.04%

Expense Ratio

0.03%

1.51%

Dividend Yield

1.85%

$110.76B

Net Assets

$191.07B

343

Holdings

319

Apr 21, 2006

Inception Date

Jan 26, 2004

–

Index Tracked

–

Large Blend

Fund Category

Large Value

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

Shared Top Holdings

Holding	VIG	VTV
JPMJPMorgan Chase & Co.	4.07%	3.47%
XOMExxonMobil Holdings Corporation	2.85%	2.43%
JNJJohnson & Johnson	2.73%	2.33%
WMTWalmart Inc.	1.96%	1.67%

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Investment Analysis

VIG

Pros

VIG charges a low 0.04% expense ratio and holds $110.8 billion in net assets.
VIG offers stable liquidity through Vanguard’s large platform and $110.8 billion in net assets.
VIG diversifies across mega-cap companies, with no top holding exceeding 4.68%.

Considerations

VIG’s 1.51% dividend yield may underperform higher-yielding income strategies.
VIG does not provide current sector-weight details, limiting transparency for allocation analysis.
VIG’s index methodology is unavailable, complicating assessment of dividend growth criteria.

VTV

Pros

VTV’s 0.03% expense ratio is slightly lower than VIG’s 0.04% fee.
VTV holds $191.1 billion in net assets, supporting tighter trading spreads.
VTV’s top holding, MU at 3.94%, remains well below typical concentration thresholds.

Considerations

VTV’s sector weights are unavailable, reducing visibility into value-oriented exposures.
VTV’s index is not available, making style-screening methodology difficult to evaluate.
VTV yields 1.85%, lower than some dedicated high-dividend value ETFs.

About VIG and VTV

VIG (VIG)

The Vanguard Dividend Appreciation ETF (VIG) offers investors exposure to US large-cap companies with a history of increasing their dividends. It aims to track an index of stocks that have consistently raised payouts, focusing on financial discipline and steady growth rather than just high yields. With a very low expense ratio of 0.04% and net assets of approximately USD 110.76 billion, it is a cost-effective tool for building a diversified equity portfolio. The fund holds around 343 positions, providing broad market coverage. Investors should note that while dividend increases can signal company health, values can rise and fall, and returns are not guaranteed. Past performance does not ensure future results.

VTV (VTV)

The Vanguard Value ETF (VTV) is a large-cap value fund designed to track the performance of US large-capitalisation companies considered to have value characteristics. Launched in January 2004, it currently holds a diverse portfolio of 319 stocks. With a very low expense ratio of just 0.03%, it offers investors a cost-effective way to access established US companies that may be trading at lower prices relative to their fundamental metrics. The fund has accumulated net assets of approximately USD 191.07 billion, indicating significant liquidity and investor confidence. It currently provides a dividend yield of 1.85%. While value strategies can offer potential advantages during market rotations, like all investments, the value of shares can fall as well as rise, and returns are not guaranteed. This fund is generally suitable for investors seeking diversified exposure to the US large-cap value segment as part of a broader portfolio strategy.

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VIG vs VTV

Fund Snapshot