The Vanguard High Dividend Yield ETF (VYM 1.03%) stands out for its low cost, higher trailing return, and broader sector exposure, while the ProShares - S&P 500 Dividend Aristocrats ETF (NOBL 1.14%) targets dividend growth with a focus on industrials and consumer defensives.
Both VYM and NOBL are popular choices for income-focused investors, but their approaches differ. VYM aims for high current yield from a wide swath of U.S. stocks. This comparison explores key differences in cost, returns, risk, and portfolio composition.
Snapshot (cost & size)
| Metric | VYM | NOBL |
|---|---|---|
| Issuer | Vanguard | ProShares |
| Expense ratio | 0.06% | 0.35% |
| 1-yr return (as of 2026-01-30) | 12.7% | 6.6% |
| Dividend yield | 2.3% | 2.0% |
| Beta | 0.76 | 0.83 |
| AUM | $84.6 billion | $11.5 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
VYM is significantly more affordable with a 0.06% expense ratio compared to NOBL's 0.35%, and it also offers a slightly higher dividend yield.
Performance & risk comparison
| Metric | VYM | NOBL |
|---|---|---|
| Max drawdown (5 y) | -15.83% | -17.92% |
| Growth of $1,000 over 5 years | $1,636 | $1,396 |
What's inside
NOBL tracks U.S. companies in the S&P 500 that have raised dividends for at least 25 consecutive years, resulting in a focused portfolio of 70 stocks. Industrials (24%) and consumer defensive (21%) sectors dominate, and the fund’s top holdings — Sysco Corp. (SYY +0.41%), C.H. Robinson Worldwide Inc. (CHRW 2.23%), and Colgate-Palmolive Co. (CL 1.85%) — are each equally weighted at around 1.5%. NOBL has a 12.3-year track record and enforces sector caps to avoid over-concentration.
VYM, in contrast, casts a much wider net with 589 holdings and larger positions in financial services (21%) and technology (18%). Its top holdings include Broadcom Inc. (AVGO 1.63%), JPMorgan Chase & Co. (JPM 1.61%), and Exxon Mobil Corp. (XOM +1.29%), with weights more concentrated at the top. VYM’s broader diversification may appeal to those seeking exposure across more sectors and companies.
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What this means for investors
Both the Vanguard High Dividend Yield ETF (VYM) and ProShares S&P 500 Dividend Aristocrats ETF (NOBL) are solid choices for investors seeking income. Each exchange-traded fund offers an attractive dividend yield, so the selection between the two come down to a handful of differences.
NOBL is appealing for investors seeking stocks that have a history of consistently raising dividends over time. This delivers income stability. The ETF also provides lower volatility, given the sectors it focuses on, and its caps to promote equal weighting.
However, NOBL sports a significantly higher expense ratio compared to VYM, which eats into that dividend income, and its limited holdings deliver lower diversification.
VYM’s strengths include a low expense ratio, and far greater number of stocks. Its larger exposure to the technology sector helped it deliver strong returns of late thanks to the rise of artificial intelligence.
That said, the tech industry introduces greater volatility. Moreover, while VYM focuses on high-yield dividend stocks, its lack of a criteria for dividend growth means its potential to deliver income over the long term may end up being lower than NOBL’s.
Deciding between the two depends on whether an investor favors NOBL’s dividend growth focus or VYM’s more diversified ETF and lower cost.
