What are expense ratios in ETFs?

Expense ratios represent the annual fees charged by fund providers, deducted from the fund's assets. They impact net returns by reducing the amount investors receive. For VOOV and VYM, these ratios are 0.07% and 0.04%, respectively. Even small differences in expense ratios can accumulate over time, influencing long-term performance, especially in low-return environments. Understanding these fees helps investors assess how much of their returns might be eroded by costs, which is crucial for maintaining portfolio efficiency.

Which fund has lower costs?

VYM has a lower expense ratio of 0.04% compared to VOOV's 0.07%. While both funds are managed by Vanguard and are designed to minimise costs for investors, even small differences in expense ratios can accumulate over time. This difference of 0.03 percentage points could be significant for those planning to hold their investment long term or those who invest large sums. Investors may look at this when determining which fund is more cost-effective.

How do their dividend yields compare?

VYM offers a dividend yield of 2.31%, while VOOV provides a yield of 1.65%. This means that, per dollar invested, VYM is expected to distribute approximately 0.66 percentage points more in annual dividends compared to VOOV, based on current figures. A higher dividend yield can be appealing for income-focused investors, whereas those prioritising capital growth may prefer a fund with a lower yield but potentially higher appreciation prospects.

Are these funds diversified?

Both VOOV and VYM are diversified across large-cap value stocks, with VOOV tracking the S&P 500 Value Index and VYM targeting high-dividend-yielding equities. However, neither fund currently has detailed sector weight data available. While their top holdings include major companies, sector diversification is limited by missing data, which could affect how well they withstand sector-specific downturns. Both funds hold large-cap value stocks but may exhibit different exposures based on their strategies.

What about liquidity and net assets?

Liquidity and net assets affect trading efficiency and ease. VYM has net assets of $80.9 billion, suggesting high liquidity and a robust infrastructure for large trades. VOOV, with $6.7 billion in net assets, is still liquid enough for most retail investors. Higher net assets often lead to tighter bid-ask spreads, making it easier to buy and sell shares at desired prices, potentially reducing transaction costs for both large and small trades.

What does 'single-stock concentration' mean?

Single-stock concentration refers to the extent to which a fund's assets are heavily invested in one particular stock. For VOOV, Apple is its largest holding, and for VYM, it's Broadcom. Such concentration increases the fund's exposure to the performance and risks of that single company. If the stock underperforms or faces a crisis, it can disproportionately impact the fund's overall value.

Can I find out what sectors these funds hold?

As of the latest data, sector weight information for both VOOV and VYM is not available. Without this data, it's challenging to assess how diversified each fund is across industries. Knowing sector weights can help investors understand exposure to particular economic conditions or sector-specific risks, so the absence of this information means investors must rely on other metrics to gauge diversification.

Do VOOV and VYM track different indices?

While both funds aim for large-cap value exposure, their specific index tracking details are not publicly disclosed in the available data. VOOV is designed to track the S&P 500 Value Index, focusing on large-cap value stocks. VYM targets high-dividend-yielding stocks. Despite potential overlap in investment style, they track distinct strategies and benchmarks.

How much overlap is there in their top holdings?

VOOV and VYM share four of their top ten holdings: ExxonMobil (XOM), Bank of America (BAC), Chevron (CVX), and Merck (MRK). This overlap indicates some similarity in their portfolios, as both funds target large-cap value stocks. However, their distinct investment focuses result in different compositions for other top holdings. This overlap suggests that while they pursue different strategies, their core portfolios exhibit some commonalities.

What are 'large-cap value' funds?

Large-cap value funds, like VOOV and VYM, focus on stocks of large, established companies perceived as undervalued relative to their earnings or dividends. This approach aims to capture steady growth and income through higher dividend payouts or capital appreciation. These funds typically have a higher proportion of shares from companies with strong cash flows and stable earnings, appealing to investors seeking a balance of growth and income. The term 'value' denotes investments in companies trading below their intrinsic value.

Which fund is suitable for which investor type?

VOOV is suitable for value-oriented investors seeking moderate distributions and growth in large-cap value stocks, with an expense ratio of 0.07% and a 1.65% dividend yield. VYM is a better fit for income-focused investors who prefer larger, established companies with higher dividend payouts, offering a 2.31% dividend yield. Investors prioritising lower expenses and liquidity may prefer VYM, while those comfortable with smaller funds or seeking a slightly different value approach may consider VOOV.

Disclaimer: What should I know about investing?

This information is educational and not personalised financial advice. Always conduct independent research or consult a financial advisor before investing. Investment returns vary and past performance does not guarantee future results. The specific holdings and metrics mentioned may change, so verify the latest data before making decisions.

VOOV vs VYM

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

Compare VOOV and VYM side by side to see how these Vanguard funds differ in expense ratios, dividend yields and top holdings. This page outlines how each fund tracks its market focus and presents key data for a clear, neutral comparison. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

VOOV

Metric

VYM

0.07%

Expense Ratio

0.04%

1.65%

Dividend Yield

2.31%

$6.69B

Net Assets

$80.88B

450

Holdings

613

Sep 7, 2010

Inception Date

Nov 10, 2006

–

Index Tracked

–

Large Value

Fund Category

Large Value

VYM costs about $3.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	VOOV	VYM
XOMExxonMobil Holdings Corporation	2.21%	2.69%
BACBank of America Corporation	1.34%	1.65%
CVXChevron Corporation	1.28%	1.54%
MRKMerck & Co., Inc.	1.21%	1.47%

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VIG vs VYM

Compare VIG and VYM ETFs on fees, dividends, and holdings. VIG offers growth focus with 1.51% yield; VYM provides value exposure at 2.31% yield.

Investment Analysis

VOOV

Pros

The fund offers competitive income with a dividend yield of 1.65 percent, suitable for value-oriented investors seeking modest distributions.
With net assets of 6.7 billion dollars, it maintains sufficient liquidity for most retail investors despite being smaller than its peers.
An expense ratio of 0.07 percent keeps annual costs low, enhancing long-term net returns for holders of this large value strategy.

Considerations

The fund’s inception in September 2010 provides a shorter track record compared to older ETFs, limiting historical performance analysis.
Its top holding in Apple constitutes 7.72 percent, introducing meaningful single-stock concentration risk within a supposed diversified large value mandate.
Sector weight data is currently not available, obscuring the full extent of industry diversification for potential investors.

VYM

Pros

With net assets of 80.9 billion dollars, the fund provides high liquidity and robust market infrastructure for large institutional and retail trades.
The 0.04 percent expense ratio is exceptionally low, ensuring minimal annual cost drag on long-term investment portfolios.
A dividend yield of 2.31 percent offers an attractive income stream, appealing to investors focused on regular cash distributions from equities.

Considerations

Broadcom represents 6.93 percent of the portfolio, creating notable single-stock concentration that may not align with purely defensive high-dividend expectations.
The fund’s holdings skew towards large capitalisation stocks, potentially limiting exposure to smaller, high-growth dividend payers.
Sector weight data is not available, preventing a clear assessment of industry diversification and cyclical exposure.

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About VOOV and VYM

VOOV (VOOV)

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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VOOV vs VYM

Fund Snapshot