What is the main difference between Vanguard Dividend Appreciation ETF (VIG) and Vanguard High Dividend Yield ETF (VYM)?

VIG focuses on companies with a history of increasing their dividends, often leaning towards growth and stability. In contrast, VYM targets stocks with high current dividend yields, prioritising immediate income generation over growth potential.

Can you explain the difference between a dividend growth strategy and a high dividend yield strategy?

A dividend growth strategy, represented by VIG, seeks to invest in companies that have a track record of consistently raising their dividend payouts. This aims for capital appreciation alongside income. A high dividend yield strategy, represented by VYM, focuses on stocks that currently offer a higher percentage of their stock price as annual dividends, prioritising immediate income.

How do the expense ratios of VIG and VYM compare, and why does this matter?

Both VIG and VYM share an expense ratio of 0.04%. This low cost is identical for both funds, meaning that fees will not differentiate their net returns. Over time, lower expenses contribute positively to investment outcomes by retaining more of your gains.

What are the main differences in the dividend yields between VIG and VYM?

VYM has a dividend yield of 2.31%, which is significantly higher than VIG's 1.51% yield. This reflects VYM's strategy to provide greater current income to investors. VIG's yield is consistent with its dividend growth approach, focusing on a combination of income and potential capital appreciation.

What is the overlap between the holdings of VIG and VYM?

Both VIG and VYM share some holdings in their top 10, including Broadcom (AVGO), JPMorgan Chase (JPM), Exxon Mobil (XOM), and Johnson & Johnson (JNJ). However, their overall portfolios differ significantly in size (VIG: $110.8 billion; VYM: $80.9 billion) and composition, reflecting their distinct investment strategies and market exposures.

What market segments do VIG and VYM typically invest in?

VIG, categorized as a Large Blend fund, provides exposure to a mix of growth and value companies that focus on dividend growth. VYM, categorized as a Large Value fund, targets companies with higher dividend yields within the large-cap value segment of the market.

How do the market capitalisation focuses of VIG and VYM differ?

Both VIG and VYM primarily invest in large-cap companies. VIG's large-cap focus aligns with a blend of growth and value strategies, while VYM's focus on large-cap value stocks emphasizes companies that potentially offer higher dividend yields and a more established financial history.

How can I incorporate VIG or VYM into my retirement portfolio?

To effectively incorporate VIG or VYM into your retirement portfolio, assess your income needs versus growth objectives. VIG may serve as a component focused on long-term growth and rising dividends, whereas VYM could provide a more substantial current income. Diversification across both may offer a balanced approach, depending on your financial goals and risk tolerance.

What are some key factors to consider before investing in VIG or VYM?

Key factors to consider include your investment goals (growth vs. income), risk tolerance, current dividend yield versus expected growth rates, and the overall diversification benefits of each fund. Remember, this information is for educational purposes and not financial advice.

VIG vs VYM

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

Compare Vanguard Dividend Appreciation ETF (VIG) and Vanguard High Dividend Yield ETF (VYM). This page examines their fees, holdings, dividends and how each fund tracks its market. VIG offers a lower yield with a growth tilt, while VYM provides a higher yield from value stocks. Both share the 0.04% expense ratio. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

VIG

Metric

VYM

0.04%

Expense Ratio

0.04%

1.51%

Dividend Yield

2.31%

$110.76B

Net Assets

$80.88B

343

Holdings

613

Apr 21, 2006

Inception Date

Nov 10, 2006

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Index Tracked

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Large Blend

Fund Category

Large Value

Both funds charge the same annual fee.

Shared Top Holdings

Holding	VIG	VYM
AVGOBroadcom Inc.	4.35%	6.93%
JPMJPMorgan Chase & Co.	4.07%	3.83%
XOMExxonMobil Holdings Corporation	2.85%	2.69%
JNJJohnson & Johnson	2.73%	2.58%

Discover More Comparisons

VIG vs VTI

Compare VIG and VTI fees, holdings, dividends and tracking methods. Review expense ratios, net assets and top stocks to understand differences.

VIG vs VTV

Compare VIG vs VTV ETFs. VIG charges 0.04% expense ratio with 1.51% yield, while VTV costs 0.03% with 1.85% yield. Both share top holdings JPM and XOM.

VIG vs VUG

Compare VIG vs VUG ETFs on fees, dividends and holdings. VIG yields 1.51% at 0.04% expense; VUG yields 0.37% at 0.03% expense. Neutral data.

Investment Analysis

VIG

Pros

VIG offers a low 0.04% expense ratio, enhancing net returns for cost-conscious investors.
The fund holds 110.8 billion in assets, providing substantial market stability and liquidity.
Launched in 2006, VIG demonstrates a robust track record in dividend-focused investing.

Considerations

VIG's yield of 1.51% may underperform income-focused portfolios seeking regular dividends.
Concentration risks arise from its large holdings, like 4.68% in Microsoft and 4.51% in Apple.
Sector weights are not available, limiting immediate visibility into VIG's industrial diversification.

VYM

Pros

VYM provides a 2.31% yield, better suited for investors targeting dividend income compared to growth options.
At 0.04% expenses, VYM maintains low operating costs, similar to its VIG counterpart.
VYM's 80.9 billion in assets under management ensure strong investor confidence and fund stability.

Considerations

The fund's concentration in large positions like 6.93% AVGO may heighten market risk exposure.
Inception in 2006 shows limited history, potentially reducing confidence in long-term performance data.
Sector weights are not available, restricting a full assessment of VYM's risk and diversification profile.

About VIG and VYM

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.

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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VIG vs VYM

Fund Snapshot