The Vanguard High Dividend Yield ETF (VYM 0.46%) delivers a higher yield and lower recent volatility, while the Vanguard Dividend Appreciation ETF (VIG 0.42%) tilts toward tech and dividend growth, with both charging identical 0.04% expenses and boasting large asset pools.
Both VYM and VIG are core U.S. equity ETFs from Vanguard, but they take different approaches. VYM targets stocks with high current yields, while VIG focuses on companies with a consistent track record of growing dividends. This comparison highlights their key differences in income, sector exposure, and risk profile.
Snapshot (cost & size)
| Metric | VYM | VIG |
|---|---|---|
| Issuer | Vanguard | Vanguard |
| Expense ratio | 0.04% | 0.04% |
| 1-yr return (as of 2026-04-20) | 34.0% | 28.2% |
| Dividend yield | 2.3% | 1.5% |
| Beta | 0.73 | 0.83 |
| AUM | $88.8 billion | $117.1 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12Â months.
Both funds are equally affordable at 0.04% in annual expenses, but VYM delivers a higher income payout at 2.3% compared to VIG’s 1.5%, which may appeal to investors seeking yield.
Performance & risk comparison
| Metric | VYM | VIG |
|---|---|---|
| Max drawdown (5 y) | -15.84% | -20.39% |
| Growth of $1,000 over 5 years | $1,736 | $1,627 |
What's inside
VIG tracks companies with a strong history of annual dividend increases, concentrating in technology (23%), financial services (20%), and healthcare (18%). The fund holds 338 stocks, with its top three positions — Broadcom (AVGO 2.51%), Apple (AAPL +0.38%), and Microsoft (MSFT 1.45%) — accounting for a meaningful portion of assets. With a twenty-year track record and over $117.1 billion in assets under management (AUM), VIG offers broad, but slightly more concentrated, exposure to large-cap dividend growers.
In contrast, VYM is more diversified across five 589 holdings and leans toward financial services (20%), technology (15%), and healthcare (13%). Its largest positions include Broadcom, JPMorgan Chase (JPM 1.69%), and Exxon Mobil (XOM +1.28%). VYM’s emphasis on stocks with higher yields results in a different sector mix and a higher current income profile.
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What this means for investors
Vanguard is known for low fees, and that’s what the Vanguard High Dividend Yield ETF (VYM) and Vanguard Dividend Appreciation ETF (VIG) have in common. Beyond that, they target different strategies, and that can help to determine the fund that matches your investment goals best.
VIG’s focus is on companies that grow dividends over time as a key means of delivering capital appreciation and a good total return over the long haul. The tradeoff is a lower dividend yield compared to VYM, and greater volatility, as illustrated by its higher max drawdown over the past five years. Yet given its larger exposure to the tech sector, it has the potential to deliver outsized results thanks to the rise of artificial intelligence.
VYM’s strategy is higher immediate yield with lower volatility. It’s built for conservative investors focused on passive income. That’s why the sector tilt is lower in technology and higher in more stable industries such as healthcare compared to VIG. In exchange, you don’t get as much of a boost from high-growth tech stocks, with the dividend being the primary driver to invest in this ETF.
