Dividend comparison

VUG vs VYM: Which Is Better?

Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard Morningstar Growth ETF and Vanguard High Dividend Yield ETF, side by side. Updated October 21, 2026.

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VUG vs VYM: key differences
The short answer, from the latest data on this page.
  • Fees. VUG is cheaper at 0.03% a year versus 0.04% for VYM. On $10,000 that is $1 a year less in fees.
  • Income. VYM pays more income, yielding 2.28% over the last twelve months versus 0.39% for VUG. That is about $189 more a year on $10,000. Both pay quarterly.
  • Performance. Over the last 5 years, VUG returned 78.4% versus 67.0% for VYM, with dividends reinvested. $10,000 would have grown to $17,845 in VUG and $16,701 in VYM.
  • Risk. VUG has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -35.6%, against -15.8% for VYM.
  • Diversification. VYM holds 589 positions and VUG holds 166. The ten largest positions make up 63.1% of VUG and 26.2% of VYM.
  • Overlap. At least 7% of the two portfolios overlap by weight, across 10 shared holdings. They mostly own different companies, so they can complement each other.
  • Dividend growth. VUG grew its yearly payout 6.9% a year over the last 4 years, versus 3.1% for VYM.
  • Size. VUG is the larger fund with $392.2 billion in assets, against $95.8 billion for VYM.

Bottom line: VUG fits better if you care most about stronger 5-year returns and faster dividend growth. VYM fits better if you care most about more income today, smaller drawdowns and broader diversification.

Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricVUG
Vanguard Morningstar Growth ETF
VYM
Vanguard High Dividend Yield ETF
Dividend yield (TTM)0.39%2.28%
Dividend / share (TTM)$0.35$3.68
Payout frequencyQuarterlyQuarterly
Last dividend$0.0910 on Sep 30, 2026$0.8869 on Sep 22, 2026
Ex-dividend dateSep 28, 2026Sep 18, 2026
Dividend growth (CAGR)6.9% over 4 yrs3.1% over 4 yrs
Price$88.67$161.15
Dividend growth streak3 years15 years
Beta1.270.75
Max drawdown (5Y)-35.6%-15.8%
Market cap$392.24B$95.79B
ExchangeAMEXAMEX
Expense ratio0.03%0.04%
Assets under management$392.20B$95.80B
Number of holdings166589
Top 10 concentration63.1%26.2%
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

VUG

$3.25/mo

$39 /yr at 0.39% yield

VYM

$19.01/mo

$228 /yr at 2.28% yield

Dividend history
Total dividends paid per share in each calendar year. VUG pays quarterly; VYM pays quarterly.
YearVUGVYM
2025$0.3351$3.5008
2024$0.3188$3.4945
2023$0.3003$3.4780
2022$0.2499$3.2518
2021$0.2567$3.0961
Strategy: Large-cap growth
Funds that hold the faster-growing half of the large-cap market, selected by measures like earnings growth, sales growth and price momentum. In practice that means heavy weights in technology and communication companies, with the largest few names often making up a third of the fund or more. Dividends are small because growth companies reinvest their cash instead of paying it out.

Concentration in a handful of mega-cap stocks makes these funds swing harder than the broad market in both directions, and they offer little current income.

What VUG vs VYM actually do

VYM
A broad index fund holding the higher-yielding side of the US dividend-paying market, several hundred companies deep.

It tracks the FTSE High Dividend Yield Index, which ranks US dividend payers by forecast yield, excludes REITs, and works down that ranking until roughly half the market value of the eligible universe is covered. Selection is on yield alone with no quality or growth screen, so the portfolio is wide and diversified but includes some payers a stricter screen would reject. Weighting is by market cap, meaning the biggest dividend-paying companies dominate.

Suits an investor who wants dependable above-market income with maximum breadth and minimum concentration risk. Less suitable if you specifically want dividend growth or a fundamental quality filter, since neither is part of the selection rule.

Core dividend holding

Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $17,845 in VUG and $16,701 in VYM.
PeriodVUGVYM
1 month0.01%1.19%
3 months4.01%0.62%
Year to date9.40%12.28%
1 year10.23%14.10%
3 years99.93%68.66%
5 years78.45%67.01%
  • VUG
  • VYM
61127193202120222023202420252026178167

Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.

Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
  • VUG
  • VYM
0%15%30%45%60%Technology60.2%17.5%Financial Services3.9%20.9%Healthcare4.2%14.1%Communication Services14.7%3.3%Industrials4.4%11.6%Consumer Cyclical9.8%6.0%Energy0.3%10.2%Consumer Defensive1.3%8.2%Utilities0.8%5.0%Basic Materials0.4%3.2%Other0.9%0.0%
VUG vs VYM holdings overlap
At least 7% overlap by weight, with 10 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
Largest shared holdingsVUG weightVYM weight
AVGOBroadcom Inc4.34%6.93%
ORCLOracle Corp0.65%1.00%
TXNTexas Instruments Inc0.36%1.08%
SBUXStarbucks Corp0.30%0.45%
MCDMcDonald's Corp0.24%0.70%
DELLDell Technologies Inc0.23%0.69%
TRGPTarga Resources Corp0.18%0.24%
FASTFastenal Co0.18%0.24%
BXBlackstone Inc0.13%0.35%
RCLRoyal Caribbean Cruises Ltd0.11%0.28%
Top 10 holdings
Largest positions by portfolio weight.

VUG166 holdings total

NameWeight
NVDANVIDIA Corp13.48%
AAPLApple Inc12.50%
MSFTMicrosoft Corp9.74%
GOOGLAlphabet Inc5.16%
AVGOBroadcom Inc4.34%
AMZNAmazon.com Inc4.26%
METAMeta Platforms Inc4.23%
GOOGAlphabet Inc4.09%
AMDAdvanced Micro Devices Inc2.66%
TSLATesla Inc2.65%

VYM589 holdings total

NameWeight
AVGOBroadcom Inc6.93%
JPMJPMorgan Chase & Co3.75%
XOMExxonMobil Holdings Corp2.84%
JNJJohnson & Johnson2.71%
ABBVAbbVie Inc1.96%
CSCOCisco Systems Inc1.80%
CVXChevron Corp1.61%
CATCaterpillar Inc1.56%
MRKMerck & Co Inc1.52%
BACBank of America Corp1.50%

Quick verdict

VUG fits better if you care most about stronger 5-year returns and faster dividend growth. VYM fits better if you care most about more income today, smaller drawdowns and broader diversification. Model the holding inside your real portfolio before deciding.

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Frequently asked questions

Is VUG or VYM better for dividend income?
It depends on your goals. VUG currently yields 0.39% Trailing Twelve Months (TTM) while VYM yields 2.28%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between VUG and VYM?
Vanguard Morningstar Growth ETF (VUG) is an ETF listed on AMEX. Vanguard High Dividend Yield ETF (VYM) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, VUG or VYM?
VUG has the lower expense ratio. VUG charges 0.03% a year and VYM charges 0.04%, a difference of $1 a year on a $10,000 investment.
Which has performed better, VUG or VYM?
Over the last 5 years, VUG has the higher total return with dividends reinvested: VUG returned 78.4% and VYM returned 67.0%. Past performance does not predict future returns.
Which is riskier, VUG or VYM?
Measured by the worst peak-to-trough decline over the last five years, VUG has been riskier: VUG fell as much as 35.6% and VYM as much as 15.8%. Their betas are 1.27 and 0.75.
How much do VUG and VYM overlap?
At least 7% of the two portfolios overlap by weight, across 10 shared holdings. The largest shared positions are AVGO, ORCL, TXN. Holding both still adds meaningful diversification.
How often do VUG and VYM pay dividends?
Both pay quarterly. The most recent payments were $0.0910 for VUG and $0.8869 for VYM.
How much income does $10,000 in VUG vs VYM generate?
At current TTM yields, $10,000 in VUG would generate roughly $3.25 per month ($39 annually). The same amount in VYM would produce about $19.01 per month ($228 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both VUG and VYM?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare VUG vs VYM with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VUG and VYM fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.

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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.