Dividend comparison
VYM vs VIG: Which Is Better for Income?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard High Dividend Yield ETF and Vanguard Dividend Appreciation ETF, side by side. Updated October 21, 2026.
- Fees. Both charge about 0.04% a year, so cost is not what separates them.
- Income. VYM pays more income, yielding 2.28% over the last twelve months versus 1.50% for VIG. That is about $78 more a year on $10,000. Both pay quarterly.
- Performance. Over the last 5 years, VYM returned 67.0% versus 61.4% for VIG, with dividends reinvested. $10,000 would have grown to $16,701 in VYM and $16,136 in VIG.
- Risk. VIG has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -20.4%, against -15.8% for VYM.
- Diversification. VYM holds 589 positions and VIG holds 338. The ten largest positions make up 26.2% of VYM and 34.9% of VIG.
- Overlap. At least 51% of the two portfolios overlap by weight, across 58 shared holdings.
- Dividend growth. VIG grew its yearly payout 7.5% a year over the last 4 years, versus 3.1% for VYM.
Bottom line: VYM fits better if you care most about more income today, stronger 5-year returns, smaller drawdowns and broader diversification. VIG fits better if you care most about faster dividend growth.
| Metric | VYM Vanguard High Dividend Yield ETF | VIG Vanguard Dividend Appreciation ETF |
|---|---|---|
| Dividend yield (TTM) | 2.28% | 1.50% |
| Dividend / share (TTM) | $3.68 | $3.65 |
| Payout frequency | Quarterly | Quarterly |
| Last dividend | $0.8869 on Sep 22, 2026 | $0.9295 on Sep 30, 2026 |
| Ex-dividend date | Sep 18, 2026 | Sep 28, 2026 |
| Dividend growth (CAGR) | 3.1% over 4 yrs | 7.5% over 4 yrs |
| Price | $161.15 | $243.07 |
| Dividend growth streak | 15 years | 12 years |
| Beta | 0.75 | 0.82 |
| Max drawdown (5Y) | -15.8% | -20.4% |
| Market cap | $95.79B | $127.69B |
| Exchange | AMEX | AMEX |
| Expense ratio | 0.04% | 0.04% |
| Assets under management | $95.80B | $127.70B |
| Number of holdings | 589 | 338 |
| Top 10 concentration | 26.2% | 34.9% |
VYM
$19.01/mo
$228 /yr at 2.28% yield
VIG
$12.50/mo
$150 /yr at 1.50% yield
| Year | VYM | VIG |
|---|---|---|
| 2025 | $3.5008 | $3.5580 |
| 2024 | $3.4945 | $3.3791 |
| 2023 | $3.4780 | $3.2081 |
| 2022 | $3.2518 | $2.9725 |
| 2021 | $3.0961 | $2.6601 |
Expect stretches of underperformance versus the broad market whenever leadership comes from the high-growth, low-yield companies these screens exclude.
What VYM vs VIG actually do
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
It tracks the S&P U.S. Dividend Growers Index, which requires a decade of unbroken annual increases and then removes the top 25% of eligible names by yield. Screening out the highest payers is intentional: an unusually high yield often signals a stretched payout or a falling share price, and the index is built for durability rather than for current income. The result is a lower starting yield than most dividend funds and a portfolio that leans toward large, stable, profitable companies.
Suits a long-horizon investor who cares more about the dividend rising every year than about the size of the first payment. Not appropriate if you need meaningful cash flow from the position today.
Dividend growth, quality tilt
| Period | VYM | VIG |
|---|---|---|
| 1 month | 1.19% | 2.56% |
| 3 months | 0.62% | 2.30% |
| Year to date | 12.28% | 10.60% |
| 1 year | 14.10% | 11.88% |
| 3 years | 68.66% | 64.31% |
| 5 years | 67.01% | 61.36% |
- VYM
- VIG
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
- VYM
- VIG
| Largest shared holdings | VYM weight | VIG weight |
|---|---|---|
| AVGOBroadcom Inc | 6.93% | 4.30% |
| JPMJPMorgan Chase & Co | 3.75% | 3.89% |
| XOMExxonMobil Holdings Corp | 2.84% | 2.96% |
| JNJJohnson & Johnson | 2.71% | 2.83% |
| ABBVAbbVie Inc | 1.96% | 2.05% |
| CSCOCisco Systems Inc | 1.80% | 1.88% |
| CATCaterpillar Inc | 1.56% | 1.65% |
| MRKMerck & Co Inc | 1.52% | 1.59% |
| BACBank of America Corp | 1.50% | 1.57% |
| PGProcter & Gamble Co/The | 1.44% | 1.50% |
VYM589 holdings total
Quick verdict
VYM fits better if you care most about more income today, stronger 5-year returns, smaller drawdowns and broader diversification. VIG fits better if you care most about faster dividend growth. Model the holding inside your real portfolio before deciding.
Frequently asked questions
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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.