⚖️ VIG vs VYM Comparison · Free & No Signup

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.

🔬 Compare top 10 holdings → 💡 Plain-English verdict
🤝 BFF Take
VIG for Long-Term Income Growth. VYM for Higher Income Today.

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.

📋 Quick Takeaways
📈VIG: 340 dividend growers, ~1.8% current yield, strong total return history. VYM: 558 high-yield payers, ~3.0% current yield.
⏱️VIG's dividend growth rate of 7-9%/yr means its income surpasses VYM's within 10-12 years for new investments.
🎯Accumulating for retirement? VIG. Drawing income in retirement today? VYM's higher current yield makes more sense.
📊 Data-Based Take: VIG has the lower fee

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.

Reviewed by a CFA® Charterholder · Data as of Jul 14, 2026 · Educational only, not financial advice
VIG
Vanguard Dividend Appreciation Index Fund ETF Shares
Expense Ratio
0.06%
1-Year Return
+15.8%
AUM
$124.6B
Holdings
340
VYM
Vanguard High Dividend Yield Index Fund ETF Shares
Expense Ratio
0.06%
1-Year Return
+19.3%
AUM
$94.6B
Holdings
558

📋 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?

Often fits investors who...
VIG
  • want tech-heavy large-cap growth exposure via S&P U.S. Dividend Growers Index
Often fits investors who...
VYM
  • 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

VIG tracks companies that have raised dividends for at least 10 consecutive years, prioritizing dividend consistency and financial quality. VYM selects companies based on current dividend yield, casting a wider net but with less emphasis on growth trajectory. VIG currently yields about 1.8%; VYM yields about 3.0%. VIG's dividend grows faster over time because its 10-year growth screen filters for financially strong companies. VYM provides more income today at the cost of slower income growth.
VIG has generally delivered stronger total returns than VYM over long periods. Its dividend growth screen selects financially healthy companies with pricing power, characteristics that correlate with capital appreciation. VIG's 5-year annualized total return has historically exceeded VYM's by 2-4 percentage points, despite its lower current yield. Total return investors who want dividend exposure are typically better served by VIG.
It depends on your timeline. If you are 5+ years from retirement, VIG's dividend growth rate means its income stream surpasses VYM's within about 10-12 years. If you are retired today and need maximum income immediately, VYM's ~3.0% yield delivers more cash right now. Many retirees hold both: VIG for income that grows with inflation, VYM for higher current distributions.
VYM holds significantly more stocks: 558 versus VIG's approximately 340. VYM's broader holdings make it more diversified across the market, while VIG's smaller, screened portfolio concentrates in companies with demonstrated multi-year dividend growth. VYM has more exposure to utilities and real estate (sectors with high yields but limited growth); VIG tilts toward industrials, healthcare, and consumer staples companies that consistently raise dividends.

New to ETF investing? See answers to the most common ETF questions →

📄 VIG & VYM Fact Sheets

VIG Fact Sheet VYM Fact Sheet
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.