VIG vs VYM: Dividend Growth vs High Current Yield
Two Vanguard dividend ETFs, same expense ratio, different strategies. VIG selects companies that have grown dividends for at least 10 consecutive years. VYM selects companies with above-average current yield.
VIG (Vanguard Dividend Appreciation) tracks the S&P U.S. Dividend Growers Index, selecting companies that have increased dividends for at least 10 consecutive years across roughly 340 holdings. VYM (Vanguard High Dividend Yield) tracks the FTSE High Dividend Yield Index, selecting companies based on current yield across 558 holdings. Both charge 0.06%. VYM typically yields 100-150 basis points more than VIG today, but VIG's dividend growers increase their payout faster over time. A $100,000 investment in VIG in 2010 would have seen its annual dividend income grow significantly faster than the same investment in VYM, because VIG's quality screen identifies companies with the financial strength to keep raising dividends. For investors in early accumulation stages or who plan to hold for 10+ years, VIG's dividend growth compounds into a higher income stream than VYM provides at the start. For investors who need maximum income now, VYM's higher current yield wins.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
📋 VIG vs VYM — Key Facts Side by Side
| Metric | VIG | VYM |
|---|---|---|
| Fund Name | Vanguard Dividend Appreciation Index Fund ETF Shares | Vanguard High Dividend Yield Index Fund ETF Shares |
| Issuer | Vanguard | Vanguard |
| Tracks Index | S&P U.S. Dividend Growers Index | FTSE High Dividend Yield Index |
| Expense Ratio | 0.06% | 0.06% |
| Cost per $10K/yr | $6.00 | $6.00 |
| AUM | $124.6B | $94.6B |
| Holdings | 340 | 558 |
| Inception | 2006 | 2006 |
| 1-Year Return | +15.78% | +19.27% |
| 3-Year Return | +16.20% | +18.50% |
| 5-Year Return | +10.70% | +12.03% |
| Dividend Yield | 1.51% | 2.30% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.00% | 0.00% |
Expense ratio, AUM, and returns updated Jul 14, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 VIG vs VYM — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want tech-heavy large-cap growth exposure via S&P U.S. Dividend Growers Index
- want broader diversification (558 holdings vs 340)
- want regular dividend income from quality dividend payers
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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❓ VIG vs VYM — Frequently Asked Questions
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